Jenni Newman on Tariffs, Gas Prices, and the Rise of Used EVs

Rising gas prices, tariff concerns, and changing consumer priorities are reshaping today’s automotive market. On this episode of Inside Automotive, Jenni Newman, Editor-in-Chief of Cars.com, breaks down the latest consumer shopping trends and explains why used EVs and domestically produced vehicles are gaining momentum.

Newman shares insights from recent Cars.com data showing increased shopper interest in EVs and hybrids as fuel costs rise and affordability pressures persist. She also explains how tariff uncertainty is influencing purchase decisions, with more consumers viewing “buying American” as a financial strategy rather than simply a patriotic choice.

Key discussion points include:

•  How tariffs are impacting vehicle shopping behavior 
•  Rising gas prices driving interest in EVs and hybrids 
•  Why used EV searches continue to climb 
•  Tesla’s dominance in used EV search activity 
•  The growing supply of off-lease EV inventory 
•  How dealers can better educate EV shoppers 
•  Why affordability and value remain top consumer priorities 

Newman also outlines how dealers can capitalize on shifting demand by focusing on consumer education, ownership costs, and long-term value.

Inside Automotive with Jim Fitzpatrick is powered by CBT News, your go-to source for the latest news, trends, and insights in retail automotive. Subscribe for more interviews with top industry leaders, dealership innovators, and experts shaping the future of automotive.

For more content, visit CBTNews.com and follow us on your favorite podcast platform.

Transcript

Welcome And Market Pressures

SPEAKER_00 0:07

Welcome to Inside Automotive with Jim Fitzpatrick.

Jim Fitzpatrick 0:12

Between ongoing tariff concerns, rising gas prices, and EVs, today's car shopper is navigating a much more complex environment. So what's actually driving consumer behavior right now? Joining us today with the latest insight is Jenny Newman, who's the editor-in-chief at Cars.com. Jenny brings more than 25 years of journalism experience, including over 15 years in the automotive space. So that's pretty cool. She's a car girl. And uh currently leads the powerhouse editorial team at Cars.com. So Jenny is a go-to expert on everything from affordability and the impact of tariffs on car prices to broader industry trends and real-time shopper behavior. So thank you, Jenny, so much for taking the time out of what appears to be a

Tariffs And Affordability Concerns

Jim Fitzpatrick 0:54

very busy schedule keeping up with all of these changes in the marketplace. So thanks so much.

SPEAKER_02 0:58

It's my pleasure. I'm excited to talk today.

Jim Fitzpatrick 1:01

Sure. So when it comes to tariffs, are consumers still paying attention or concerned about this?

SPEAKER_02 1:06

Yes, I think it's top of mind, right? Affordability, broadly speaking, is is a is a big pain point right now for consumers, and that absolutely translates to tariffs. So, you know, we've had about one of our most recent surveys, uh, 58% of car shoppers told us that tariffs are a primary concern. And what's interesting, I think, is that this is shifting the sentiment around American made from an emotional choice, wanting to support your neighbor, to a strategic choice, something that's financial and has much greater

Gas Prices Boost EV Interest

SPEAKER_02 1:38

impact.

Jim Fitzpatrick 1:38

Yeah, that's fantastic. So affordability is top of mind with consumers right now. Now we're seeing gas prices at record levels. How is this changing the market and what consumers are shopping for?

SPEAKER_02 1:50

It's having a great impact on the market. In fact, what we're seeing at Cards.com is we're seeing an increased interest in new EVs and used EVs. Um roughly 25% increase between February, the end of February, and the end of March. So a lot more interest there. It's also pushing up interest in hybrids as well. So seeing about a 13% increase in searches around new hybrids, too.

Jim Fitzpatrick 2:14

Wow, that is fantastic. A 25% increase. How do these search trends compare to last year? I mean, is it is it 25% over last year or over last month?

SPEAKER_02 2:23

Or it gets a little interesting when we compare it to last year. You have to remember, of course, that there were federal incentives around new uh EVs. And so when we look at new EV searches year over year, there's actually a marked decrease. Um 27% decrease year over year in new EV searches. So new EV searches are kind of coming out of a bit of a low. But on the use side, or yes, on the use side, we're seeing an 8% increase year over year. And then on hybrids, including plug-in hybrids, an 11% increase in hybrid searches year over year. So you know, so it depends a little bit on um, I think a little bit on the price point. Yeah. But it's interesting to see, you know, that interest is increasing overall.

Jim Fitzpatrick 3:08

Yeah. And I think EVs are here to stay. And I think that the hybrids are really the bridge to the future for EVs, right? And until people are trying the hybrids and and buying them and such, and then I think that might evolve into, well, why don't we just get an EV, right?

SPEAKER_02 3:23

Rather than Yeah, they're you know, they're building a comfort level with technology that's new to them. I mean, we both know that hybrids, it's not a new technology. And EVs have actually been around since 2011. So also not that new. But when you consider how

Most Searched EV Models

SPEAKER_02 3:38

long a shopper holds on to their car, um, it could be a new vehicle for them. And so there is a learning curve that's really important there.

Jim Fitzpatrick 3:45

What EVE model, what EV models are most popular right now at Cars.com?

SPEAKER_02 3:51

So people are looking at the uh on the new side at the Volkswagen ID Buzz, which is that really fun um minivan uh you know EV. Such a like so eye-catching. Yeah, but also what's standing out is the Chevy Equinox EV, the Ford Mustang Maki, and then the Chev the Chevy Silverado EV. So a pickup truck as well. On the U side, what is what is rising to the top are the Teslas. So the Model 3, the Model Y, the Model S, the Model X, those are getting the most searches on Cars.com.

Jim Fitzpatrick 4:23

Wow. Wow, that's interesting. Yeah. Yeah. And the neat part about a Tesla is the fact that you can never really tell what year the vehicle is. You could buy a 10-year-old Tesla, and if it's in great shape, somebody thinks you just bought a brand new Tesla.

SPEAKER_02 4:36

That's so true. And I think what's also great about Tesla is they have a lot of um that infrastructure that they built over the years that gives new EV owners, even if it's a used EV, new to them EV owners, that gives them a little more confidence, I think, in knowing that this large network is out there and it's easy to charge when you're out and about.

Jim Fitzpatrick 4:54

Yeah, no, no question about it.

Why Used EVs Look Attractive

Jim Fitzpatrick 4:56

And it's with the with the EV tax credit gone, um, have EVs become out of reach for consumers, or is that not really an issue? Because obviously EVs cost more than you know ice vehicles, right? But it seems as though, based on what you're saying, it hasn't deterred the market.

SPEAKER_02 5:13

It's certainly not deterring the market. And I would say for those who are interested in EVs, but finding some of the prices around new EVs a little out of their reach, definitely check on the use side. Um, that's really where for any car shopper who's looking for a deal, that's where the deals are hiding us with used EVs. Yeah. Because we're seeing uh quite a bit of depreciation. Um, you know, we're having EVs come off of leases. And so what you're getting is lower miles. Um, and of course, with an EV, you have less maintenance, right? Uh, you know, there's there's there's a lot of pluses to EV ownership if you can get over that learning curve.

Jim Fitzpatrick 5:49

Right, right, yeah. So it sounds like uh people are are you know taking another look, another good look at EVs because of these gas prices and and uh you know my two my two kids have got my older two kids have got EVs and they said we're never going back. We don't miss, we don't like going to gas stations, we don't miss going to gas stations. I mean, they feel as though uh all of their next vehicles will be EVs. Do you see, is there are is there any trend that you can follow that says how many what the percentage of an EV owner is that re-ups and says, okay, my next vehicle is going to be an EV?

SPEAKER_02 6:24

I don't have those numbers in front of me right now, but I know that there is a sentiment among EV shoppers. And I there's always going to be a percentage where they realize that perhaps EV ownership isn't for them and maybe they they move back to a hybrid as we were discussing. Yeah. But for a lot of EV owners, you put in, especially if you put in a level two charger at home or you have easy access to level two charging, that makes that ownership um experience so seamless that I think once you've built that infrastructure into your own life, it's it's pretty easy to consider your next purchase will be

Dealer Advice On EV Education

SPEAKER_02 6:56

an EV again.

Jim Fitzpatrick 6:56

That's right. That's right. Any advice for dealers on on this current surge in EVs and how they should be positioning them for their customers?

SPEAKER_02 7:04

Oh my gosh. Yeah, so many things to talk about, right? The value component is is probably your biggest selling point right now. And it's it's really um, I think it helps bridge or pull in shoppers who who might be really on the fence about whether or not an EV is is for them. Um I think what's also interesting is that it allows the dealer to not rely on gas prices staying high. Yeah. So they don't need to, you know, pin all of these conversations around how much the you know a gallon of gas is right now, should those numbers come back down. The the low prices around UCVs are likely going to remain. I think one other thing, of course, for dealers, and I'm sure they already know this, but educating consumers on EV ownership is so important. We mentioned level two home charging and how important that is with some of these EVs. Lower maintenance costs, you know, that's critical. And then also how to help a shopper think about whether an EV will fit seamlessly into their life. Are they commuting five miles a day or are they commuting 50 miles a day? Right. Right. And so kind of talking through that daily use of the vehicle

Closing Thoughts And Thanks

SPEAKER_02 8:10

will help them, you know, think through whether or not that EV is gonna be the right car for them.

Jim Fitzpatrick 8:16

Sure, sure, for sure. Great advice. Jenny Newman, editor in chief at cars.com. Thank you so much for stopping by CBT News. This kind of content our dealers absolutely love. So thanks so much for coming by and uh love to do a follow up with you because this is a very fluid market we're in, isn't it?

SPEAKER_02 8:33

Yes, it is. Anytime. Happy to help.

SPEAKER_00 8:38

Cool. Thanks for watching Inside Automotive with Jim Fitzpatrick.