Electric vehicles (EVs) have been on sale in the United States for well over a decade, with about 2.2 million on the road by the end of last year, according to data analytics company Experian. EV sales have continued to grow, with total battery-powered electric vehicle sales in the US surpassing 800,000 in 2022, and expected to exceed one million this year, according to Kelley Blue Book. While the used EV market is still small, the increasing growth trajectory of EV sales means that shopping for a used electric vehicle will become more common and easier over time, with more make and model choices.
Charging Infrastructure and Range
When it comes to shopping for a used electric vehicle, it is similar to looking for any other used car or truck. Does it fit your budget and lifestyle, and is it reliable and comfortable? However, there are specific considerations that EV shoppers have to make regarding charging options and range.
There are currently about 145,000 gas stations in the US, but only 53,000 public charging stations. While the charging infrastructure is improving, it is still limited in many parts of the country, which could be an issue for someone looking to go electric. Consumers should determine what kind of range they need, then research EVs that meet their needs, said Tom McParland, a writer for Jalopnik who runs the vehicle-buying service Automatch Consulting. They also need to account for what sort of charging infrastructure is available in their area and if home charging is feasible, he said.
Consumers should set realistic expectations, according to Chris Harto, the senior energy policy analyst for Consumer Reports. “Ask yourself where and when you’ll be charging,” he said. “If your answer is that you have no place to charge it while at home or work, you may want to consider a broader range of car types, including hybrids, which can offer outstanding fuel economy and low maintenance costs.”
Some expensive EVs boast impressive range, such as the Lucid Air (EPA range estimate: up to 516 miles) and the Tesla Model S (up to 405 miles). More affordable electric vehicles tend to have shorter ranges. Battery electric vehicles with list prices under $35,000, such as GM’s Chevy Bolt EV and the Hyundai Kona Electric, have EPA ranges of nearly 260 miles but are unlikely to make it that far in real-world driving conditions. This is especially true in cold weather, which can interfere with the electrochemical reactions inside batteries.
A battery’s range is likely to degrade over time. Batteries can lose 5% to 10% of their power in the first five years and keep degrading after that due to a variety of factors, including age, exposure to temperature extremes, and use of fast charging. If the degradation is excessive, you might need to repair or replace the battery, which can get costly. Batteries also are among the most expensive parts of an EV and can cost over $10,000 to replace, but federal rules mandate that they’re covered under warranty for at least eight years or 100,000 miles.
Determining the exact condition of a used BEV’s battery can be tricky – the US auto industry does not have a standard set of metrics to measure it. But there are still ways to get a general idea of a battery’s health. Recurrent, a Seattle startup which has teamed with the automotive site Edmunds, offers EV and plug-in hybrid consumers a free prediction of remaining battery life based on statistics it’s gathered on mileage, age, climate, and other factors. A long test drive can also give you an idea of a battery’s health because you can monitor how quickly it loses charge.
Depreciation, Maintenance Costs, and Affordability
EVs generally depreciate faster than internal combustion engine (ICE) vehicles, according to Kelley Blue Book. Three-year-old EVs hold 63% of their value compared to 66% for ICE vehicles. Depreciation at five years is even more pronounced, with EVs holding 37% of their initial value and ICE vehicles 46%. This depreciation can make used EVs a good deal compared to buying new.
The average used EV sold for $42,895 in March, noted Kelley Blue Book executive editor Brian Moody. That’s down 1.8% from February but still significantly higher than the used vehicle market overall, where prices averaged a little over $27,000 in the first quarter.
Low maintenance and upkeep costs can help make up for the higher purchase price, though. Consumer Reports found that EVs cost about half as much to repair and maintain as gas-powered vehicles. EVs have fewer fluids to change, and electric motors are less complicated than gasoline and diesel engines, according to Benjamin Preston, an autos reporter for the organization. “Simply put, there’s less that can wear out.”
Used EVs can save even more than new ones. That’s because depreciation takes a bite out of the EV price premium, but used buyers still get the same fuel and maintenance savings. In addition those benefits, a used EV can qualify for state and federal incentives. 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.
“The luxury [EV] space is where buyers will find the best value for their dollar, especially in the sedan segment,” McParland said. “If you look at models like the Audi e-tron GT or Volvo S90 T8 PHEV, you can really take advantage of some depreciation.” Luxury vehicles often depreciate faster than the mainstream market, he said, adding that the changes in federal tax credits are also impacting the luxury EV market
Leave a Reply