The used-car market is showing a strange inversion: some months-old Toyota RAV4 hybrids are selling for thousands more than brand-new ones at dealerships. According to CarGurus data cited by WIRED, listings run $3,000 to $6,000 above new prices. The RAV4 went all-hybrid last year, and Toyota cannot build them fast enough to meet demand.
Rising gas prices are the main driver. The average US gallon costs $4.40, up 40% from a year ago, with California averaging $6.36, following conflict in the Strait of Hormuz. Buyers are responding by seeking fuel-efficient cars, and hybrids are the clear beneficiary. New hybrid sales rose 29% for Toyota in the third quarter and more than doubled for Kia; about one in six new US cars sold is now a hybrid.
Meanwhile, new EV sales have dropped by nearly half after the Trump administration ended a federal tax credit. Hybrids offer familiar refueling and lower upfront costs, making them a pragmatic middle ground. Used hybrid prices are up almost 5% year over year, averaging $34,500—higher than used EVs or gas cars.
Automakers are adjusting. General Motors, which had promised a 40% electric lineup by 2025, missed that target and is now publicly embracing hybrids. One executive told CNBC: "We're not tone-deaf to our customers." The WIRED article presents a single perspective, but it suggests that hybrids, not EVs, may be the immediate future for most American drivers.{