Used car demand rises as buyers seek fuel efficiency and affordability amid high gas prices

CarGurus reports a surge in demand for nearly new used cars and fuel-efficient vehicles in Q1 2026, driven by rising gas prices and affordability concerns. Sales of used cars less than two years old jumped 24% year-over-year, with popular models priced under $30,000. Older used cars also saw growth as budget-conscious buyers seek value. Meanwhile, new car supply is high but demand concentrates on hybrids and affordable models. Interest in electric vehicles and hybrids increased significantly, with used EV sales up nearly 30% despite the end of federal tax credits. This trend highlights a shift toward cost-effective and efficient vehicles as consumers adapt to economic pressures.