What to know about buying a used EV as more hit the car market

Affordable electric vehicles have been on sale in the U.S. for more than a decade, and data analytics firm Experian said there were about 2.2 million electric vehicles on the road at the end of last year. Electric vehicle sales are also continuing to grow. As recently as 2021, total sales of battery-powered electric vehicles in the U.S. were under 450,000, but Kelley Blue Book says sales will surpass 800,000 by 2022 and are expected to top 1 million this year. While the used EV market is still small, the growth trajectory of EV sales means that buying a used EV will become more common and accessible over time, with a wider selection of makes and models.

In many ways, buying a used EV is like finding any other used car or truck. Does it fit your budget and fit your lifestyle? Is it reliable and comfortable? But beyond these criteria, EV shoppers must consider some specific considerations related to charging options and range.

Below are some key EV-specific issues to consider.

Charging remains limited in many areas

There are currently approximately 145,000 Gas station in the US, but only 53,000 public charging station. Although charging infrastructure is improving, it is still limited in many parts of the country, which could be a problem for people who want to use electric vehicles. While this is an issue with any new or used EV purchase, it’s critical to understand before understanding how it can impact a used EV buying decision.

Tom McParland, a Jalopnik contributor who runs auto-buying service Automatch Consulting, said consumers should determine what range they need and then research electric vehicles that meet that need. They also need to consider the type of charging infrastructure available in their area and whether home charging is feasible, he said.

Consumer Reports’ senior energy policy analyst Chris Harto said shoppers should set realistic expectations. “Ask yourself when and where to charge,” he said. “If your answer is that you don’t have a place to charge it at home or at work, you may want to consider a wider range of vehicle types, including hybrids, which offer excellent fuel economy and low maintenance costs.”

Your Driving, Mileage Habits Matter

Some expensive EVs have impressive ranges and charging infrastructure may never be an issue, e.g. sober air (EPA range estimate: up to 516 miles) and tesla Model S (up to 405 miles). More affordable EVs tend to have shorter ranges, though.

BEVs with a list price below $35,000, such as General MotorsThe Chevrolet Bolt EV and Hyundai Kona Electric have an EPA range of nearly 260 miles, but it’s unlikely to get that far under real-world driving conditions. This is especially true in cold weather, which interferes with the electrochemical reactions inside the battery.

EV range will drop

This is where the general battery considerations become more specific when power is applied. The range of EVs may decrease over time.

battery may be lost 5% to 10% Their power drops off for the first five years and thereafter due to a variety of factors including age, exposure to extreme temperatures, and use of fast charging. If the degradation is excessive, you may need to repair or replace the battery, which can be costly.

Batteries are also one of the most expensive parts in an EV and can cost over $10,000 to replace, but federal regulations mandate that they be warranted for at least 8 years or 100,000 miles, so shoppers buying a lightly used BEV may still have some coverage left over . Also, even a properly used battery may still have enough capacity for your needs.

Exact battery life is hard to measure

Determining the exact condition of a used BEV battery can be tricky — the U.S. auto industry doesn’t have a standard set of metrics to measure it. But there are still ways to get an overview of your battery’s health.

regulara Seattle startup partnering with automotive site Edmunds, provides free predictions of remaining battery life for EV and plug-in hybrid consumers based on the statistics it collects on mileage, age, climate and other factors.

Extended test drives can also give you an idea of ​​the health of your battery, as you can monitor how quickly it loses charge. This is especially true if it includes constant cruising on the highway, which tends to drain the battery faster than stop-and-go driving.

As with all used car purchases, it pays to have a professional inspection done. “I generally recommend that consumers visit the service department at the dealership where the (EV) is sold,” said Ronald Montoya, Edmunds’ senior consumer advice editor. “Compared to independent mechanics, you can be sure that a dealership mechanic has accepted the training on (electric vehicles),” he said.

Electric cars depreciate faster, but with less maintenance

Electric vehicles typically depreciate faster than internal combustion engine vehicles, according to the Kelley Blue Book. The car research firm said three-year-old electric cars retained 63% of their value, compared with 66% for cars with internal combustion engines. The depreciation after five years is even more pronounced, with EVs holding 37% of their initial value and combustion engine cars holding 46%.

This depreciation can make used EVs a bargain compared to buying new, but don’t be surprised if prices remain high — many EVs are expensive to begin with.

Kelley Blue Book executive editor Brian Moody noted that the average used electric vehicle sold for $42,895 in March. That’s down 1.8 percent from February, but still significantly higher than the used car market as a whole, which averaged just over $27,000 in the first quarter.

Still, lower maintenance and upkeep costs can help make up for the higher purchase price. Consumer Reports found that electric vehicles cost about half as much to repair and maintain as gasoline-powered vehicles. “[Electric cars]don’t have fluids to replace, and the electric motors are less complicated than gasoline and diesel engines,” noted Benjamin Preston, the group’s automotive journalist. “Simply put, there are fewer things to wear and tear.”

he pointed to the nearest study Shows that the cost of ownership of electric vehicles is lower than that of gasoline vehicles over time. Used EVs save more than new EVs, study finds. That’s because depreciation erodes the price premium for EVs, but second-hand buyers can still save the same on fuel and maintenance.

Tax Credit Eligibility for Used Electric Vehicles

In addition to these benefits, used EVs are also eligible for state and federal incentives.

Used electric vehicles (plus plug-in hybrids and fuel cell vehicles) purchased from licensed dealers for up to $25,000 qualify for a federal tax credit of up to $4,000. Learn more from the IRS.

Many states also have their own tax credits. See what each state offers on Kelley Blue Book.

Where to trade in used electric cars

In the used car market, pricier models are usually worth more.

“The luxury (EV) segment is where buyers can find great value for their money, especially in the sedan segment,” McParland said. “If you look at models like the Audi e-tron GT or the Volvo S90 T8 PHEV, you can really take advantage of some of the depreciation.”

Luxury cars typically depreciate faster than the mainstream market, he said, adding that changes to the federal tax credit are also affecting the luxury EV market. (Among other requirements, the federal tax credit for new plug-in hybrid, fuel cell and full battery electric vehicles applies only to SUVs under $80,000 and cars under $55,000.)

Another attractive option is Tesla’s Model 3, which has enough room for a family of four and a range of up to 358 miles. Used Tesla prices have been falling since 2022, used Model 3 Selling for less than $43,000 in the first quarter.

The best deals for shoppers on a budget include the Chevrolet Bolt EV, Hyundai Kona Electric and Kia Niro EV, which offer a good mix of range and relative affordability, Montoya said.

“The greatest value is in old and out-of-warranty EVs, and relatively inexpensive new EVs,” Moody’s said.