What to know about buying a used EV as more hit the car market
Electric vehicles (EVs) have been on sale in the US for well over a decade, with around 2.2 million on the road as of the end of 2021. This number is expected to continue growing, with sales of battery-powered EVs surpassing 800,000 in 2022 and set to top one million this year, according to Kelley Blue Book. While the used EV market is still small, it’s likely to expand as purchases of new EVs increase. However, there are some specific considerations for those shopping for used EVs, including charging options and range.
One of the most important things to consider is charging infrastructure, as there are currently only 53,000 public charging stations across the US, compared to 145,000 gas stations. Consumers should research which EVs can meet their desired range, as well as what sort of charging infrastructure is available in their area and if home charging is feasible.
It’s also worth bearing in mind that an EV’s range is likely to degrade over time, and batteries can cost over $10,000 to replace. However, they’re covered by warranty for at least eight years or 100,000 miles, meaning shoppers looking at a lightly used EV still likely have some coverage left.
While EVs generally depreciate faster than comparable internal combustion engine (ICE) vehicles, with three-year-old EVs holding 63% of their value compared to 66% for ICE, they also cost about half as much to repair and maintain as gas-powered vehicles, Consumer Reports found.
EVs can also qualify for state and federal incentives, including tax credits for those purchased for up to $25,000 from a licensed dealer. Higher-priced used EV models, particularly luxury sedans, can offer good value due to faster depreciation, but the best deals may be on older vehicles that are out of warranty or those that were relatively inexpensive when new.
FAQs
What is the average price of a used EV?
The average used EV sold for $42,895 in March 2022, according to Kelley Blue Book.
Why do EVs depreciate faster than comparable ICE vehicles?
EVs generally depreciate faster than ICE vehicles, holding only 63% of their value compared to 66% for ICE after three years, and 37% of their value compared to 46% for ICE after five years. This is due to a combination of factors, including the relatively short lifespan of EV batteries and the limited charging infrastructure in many areas.
Are there tax credits for used EVs?
Used EVs (plus plug-in hybrids and fuel-cell vehicles) purchased for up to $25,000 from a licensed dealer can qualify for up to $4,000 in federal tax credits. Many states also offer their own tax credits.
What is the battery life of a used EV?
Determining the exact condition of a used EV’s battery can be tricky, as the US auto industry does not have a standard set of metrics to measure it. However, a long test drive can give you an idea of the battery’s health, as can a free prediction of remaining battery life based on statistics it’s gathered on mileage, age, climate, and other factors from services such as Recurrent.
What is the best value used EV?
For shoppers on a budget, the best deals are models including the Chevrolet Bolt EV, Hyundai Kona Electric, and the Kia Niro EV, which offer a good mix of range and affordability, according to Edmunds’ senior consumer advice editor Ronald Montoya.
Essential Information for Purchasing a Pre-owned EV as the Car Industry Expands
The ongoing chip shortage that has depleted stock of new auto inventory has led to an increase in demand for pre-owned electric vehicles (EVs) in the US. According to Experian, there were about 2.2 million EVs on the road by the end of 2021, with sales expected to top one million this year alone. While the used EV market remains small, the growth in demand means it will become more common and offer a wider range of make and model choices. However, there are some specific considerations that EV shoppers need to make when purchasing a pre-owned EV, particularly related to charging options and range limitations. In addition, shoppers should also set realistic expectations as batteries can degrade over time, with a 5-10% decline in power likely in the first five years. Despite this, a used EV can offer savings in the long run thanks to low maintenance and upkeep costs, and can also qualify for state and federal incentives.