U.S. Drivers Shift to Electric Vehicle Rentals Amid Rising Gas Prices

As gasoline prices in the United States have surged due to the ongoing conflict in the Middle East, early signs indicate a significant shift towards electric vehicle (EV) rentals among consumers. The average gas price has risen by over a third since the onset of the conflict on February 28, reaching $4.02 per gallon, according to the U.S. Energy Information Administration. This price shock has prompted many drivers to seek alternatives to traditional gasoline-powered vehicles.

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Rental companies have reported a notable increase in EV bookings. At Hertz, requests for EV reservations rose nearly 25% in March compared to February, with the most substantial demand observed on the West Coast, where gas prices are typically higher. Similarly, Turo, a peer-to-peer car rental service, experienced an 11% increase in EV bookings during the last three weeks of March. On March 31, the day U.S. gas prices surpassed $4 per gallon for the first time since 2022, Turo reported a staggering 47% increase in EV bookings compared to the same day in 2025.

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Despite the rising interest in EV rentals, the overall market for new electric vehicles in the U.S. has faced challenges. Sales of new EVs declined by 25% in March compared to the previous year, largely attributed to the expiration of a $7,500 tax credit last autumn. However, the demand for used EVs has surged, indicating a shift in consumer behavior towards short-term rentals as a means to mitigate fuel costs.

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Car Rental Gateway, a digital rental platform, noted a 16% relative increase in EV and hybrid bookings in March. Hannes Põldvee, a board member at Car Rental Gateway, suggested that rental companies investing in electric vehicles could benefit if high gas prices persist. The increased demand for EVs has also positively impacted the used EV market, with prices stabilizing after a decline earlier in the year.

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The shift towards electric vehicle rentals reflects broader trends in consumer preferences as fuel prices continue to rise. In Europe, for instance, EV registrations across 15 countries surged by more than 50% in March, although the U.S. has seen a more muted response. Experts suggest that while the current spike in gas prices is influencing rental choices, the long-term impact on car ownership decisions remains uncertain.

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John Coles, vice president of data science and analytics at ACV Auctions, remarked, “We have seen EVs get a second lease on life due to the sustained pressure at the pump.” This sentiment underscores the potential for electric vehicles to play a more significant role in the automotive market as consumers adapt to fluctuating fuel costs.

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• “We have seen EVs get a second lease on life due to the sustained pressure at the pump,” — John Coles, Vice President of Data Science and Analytics, ACV Auctions

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• “Rental companies that bet big on electric cars could benefit if gas prices stay high, said Hannes Põldvee, board member at Car Rental Gateway.” — Hannes Põldvee, Board Member, Car Rental Gateway

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This evolving landscape highlights the interplay between fuel prices and consumer choices, suggesting that the demand for electric vehicles may continue to grow as drivers seek cost-effective alternatives.