Electric vehicle sales moved higher in August as gas prices continued to rise, although the market remains well below last year’s levels. New EV sales increased 2.5 percent from July, according to Cox Automotive, while used EV sales jumped 25.9 percent for the month.

The numbers suggest buyers are increasingly looking for alternatives to gasoline, but they are also becoming more price-conscious. Hybrids remain popular because they preserve a familiar driving experience while reducing fuel costs. Used EVs are attracting shoppers with lower prices and a growing supply of vehicles returning from leases.

New EV sales remain well below last year

Nearly 79,000 new electric vehicles were sold in August. That was an improvement over July, but battery-electric vehicle sales were still down 46.9 percent compared with the same month a year earlier. Cox Automotive attributed the difficult comparison to consumers rushing to purchase EVs before the federal tax credit ended.

Tesla continued to dominate the new-vehicle market. The automaker sold just under 41,000 EVs in August, even though its volume declined 3.8 percent from July. Toyota ranked second after sales surged 34.9 percent to 4,964 units.

The sales gap highlights Tesla’s continued lead among EV brands, despite its month-over-month decline. Popular models included the Tesla Model 3, Tesla Model Y and Ford Mustang Mach-E, which recorded the largest month-over-month volume increases, according to Cox Automotive.

New EV prices move closer to gas-car parity

Average transaction prices for new EVs fell 1.3 percent in August and 2.8 percent year over year. At $54,754, the average EV remained more expensive than the average combustion-powered vehicle, which carried an average transaction price of $49,907.

The narrowing gap could make new electric vehicles more approachable for shoppers focused on operating costs. However, the sales decline from a year ago shows that pricing alone has not restored the buying momentum seen before the federal incentive expired.

Used EV sales surge as off-lease inventory returns

The used market delivered the strongest growth. Cox Automotive recorded 44,350 used EV sales in August, up 25.9 percent from July and 14.7 percent from a year earlier. Vehicles returning from leases are giving buyers more choice, particularly among shoppers seeking a lower-cost way to switch away from gasoline.

The average used-EV listing price fell 1 percent from July to $37,441. That made a used electric vehicle substantially cheaper than a new vehicle, whether gasoline-powered or electric. Still, the average listing price was 8.2 percent higher than it was a year ago.

Tesla also led used EV sales, accounting for nearly 30 percent of the market in August. Nissan sales increased 45.1 percent, while Kia sales climbed 32.1 percent. Those gains indicate that demand is spreading beyond Tesla even as the brand retains the largest share.

What the August data means for buyers

August’s results show two distinct trends: new EV demand is recovering modestly from July, while used EV demand is expanding much faster. For cost-conscious buyers, returning lease vehicles may offer the widest selection and the lowest entry prices in the electric market.

Gas prices, falling new-EV transaction prices and a larger used inventory are all pushing EVs into consideration. Whether that momentum continues will depend on pricing, incentives and the supply of affordable models.