Will Gas‑Car Prices Drop as Electric Vehicles Grow?

As electric vehicles (EVs) steadily increase their share of the market, many wonder: Will prices for gasoline-powered cars fall? The answer isn’t simple, but patterns are starting to emerge.

1. EV Growth Is Real, But Gas Cars Still Dominate

In the U.S., EVs now make up nearly 8–9% of new vehicle sales. Globally, electric vehicles are seeing strong growth, with millions sold each quarter. Still, EVs remain a small portion of the total number of cars on the road, so the traditional gas-powered vehicle market hasn’t been dramatically affected yet.

2. Supply and Demand Matter

Used gas-car prices are influenced more by supply chain issues, regional demand, and overall economic trends than by EV adoption alone. In some areas, used gas-car prices are falling slightly, while in others, they remain high due to limited inventory and strong demand.

As more EVs become available in the used market, that added competition may soften prices across the board, including for gas-powered vehicles.

3. Are EVs Disruptive Enough Yet?

In certain countries, EVs are now priced similarly—or even lower—than gas cars, thanks to local manufacturing and government incentives. In the U.S., however, EVs still tend to cost more than comparable gas-powered vehicles.

That’s expected to change in the next few years as battery technology improves and production costs drop. When EVs hit price parity with gas vehicles, consumer preferences could shift quickly.

4. The Role of Oil and Gasoline Prices

Even with EV growth, global oil demand is still climbing and isn’t expected to peak until the end of the decade. Gasoline prices remain a key factor—higher fuel costs often push buyers toward EVs, while lower prices can help gas cars stay competitive. However, as EV infrastructure improves, the cost advantage of gas cars may erode.

5. What to Expect Next

Short term (1–2 years):
Used gas-car prices will likely stay stable or decline slightly in some areas, but EV competition won’t cause a major drop just yet.

Medium to long term (3–5 years):
As EVs become more affordable and accessible, gas-car values—especially used ones—are expected to decline more significantly. Regulatory changes banning new gas car sales in some regions will also put downward pressure on resale value.

Key Takeaways

• EV adoption is growing steadily, but gas cars still make up most of the market.

• Used car prices depend more on supply and demand than EV competition for now.

• As battery prices fall and EVs become cheaper, gas car values will gradually decrease.

• Regulations and consumer preferences will accelerate the decline of gas-powered vehicle demand over time.

Gas-car prices probably won’t collapse overnight—but the shift is coming. The more affordable and mainstream EVs become, the more pressure they’ll put on the traditional auto market. If you’re planning to sell a gas car in the coming years, it may be wise to act sooner rather than later.