Should You Buy A Used Electric Car?

As electric cars become more accessible, many drivers find themselves wondering, "Should I buy a used electric car?" With rising gas prices and growing interest in eco-friendly options, the appeal of a used electric vehicle (EV) has grown significantly. The secondhand EV market is not as big as the typical used car market, so knowing the unique factors to consider in a preloved EV may not be as easy. This guide covers the benefits, drawbacks, and what to watch for when considering a used EV, from battery life and maintenance savings to tax credits and resale value.

Financial Benefits of Buying a Used Electric Car

Lower Purchase Price

One of the main reasons people turn to used electric vehicles is their affordability. New EVs often come with a high price tag, but used electric cars have generally seen significant depreciation, resulting in a lower purchase and lower price tag. The average used EV in the car market is often priced below $30,000, and models like the Chevrolet Bolt and Nissan Leaf can be found for even less, especially when compared to new models like the Tesla Model 3.

Federal and State Incentives

Used EVs also qualify for state and federal incentives, including a federal tax credit of up to $4,000 through the Inflation Reduction Act. This available federal tax credit helps offset the purchase cost, making a second-hand electric car an even more attractive choice for budget-conscious buyers. For more details on the topic, read our article EV Charging Station Incentives By State.

Long-term Savings

Electric vehicles are often cheaper to operate than gas-powered cars. EVs require less maintenance, and electricity generally costs less than gasoline. These maintenance savings include fewer issues with brake pads (thanks to regenerative braking), as well as no need for oil changes or complex internal combustion engine repairs. For the average driver, switching to a used EV can offer substantial long-term savings.

Battery Life and Replacement Costs

Battery Health and Degradation

When considering a used EV, battery health is a crucial factor. Battery degradation, or the gradual decline in battery capacity, can impact the car’s range and performance. Although new EV batteries are built to last and often come with warranties of up to 8-10 years, older EVs may have experienced some battery issues, depending on factors like climate and charging frequency​.

Replacement Costs and Warranties

While many EV batteries retain up to 80% of their original capacity even after several years, a replacement can be costly if needed. Some EV batteries may cost between $5,000 and $20,000 to replace. Therefore, it's essential to check the remaining battery warranty if you’re buying an older model, as this can provide peace of mind and potentially save money down the line​.

Maintenance and Reliability

Lower Maintenance Requirements

EVs generally have fewer moving parts than gas-powered cars, reducing the likelihood of mechanical failures and making them easier to maintain. Battery electric vehicles also tend to have fewer parts that require regular servicing, such as transmission or exhaust systems, which are standard in internal combustion engine (ICE) vehicles​.

Certified Pre-Owned Options

Many manufacturers offer certified pre-owned (CPO) EVs, which come with additional benefits like extended warranties, lower interest rates on auto loans, and the assurance that the EV has passed rigorous inspections. These CPO-used cars often have fewer miles than traditional used vehicles and can provide additional security for those new to electric car ownership​.

Environmental Impact of Buying a Used EV

Reduced Carbon Footprint

Choosing a used electric vehicle is environmentally beneficial. Unlike a gas-powered car, a used EV produces no tailpipe emissions, helping to reduce greenhouse gases. While manufacturing an EV generates a larger carbon footprint due to battery production, studies have shown that EVs offset these initial emissions within 6-18 months of driving. For environmentally-conscious buyers, purchasing a second-hand electric car is an even greener choice.

Reduced Impact on Resources

As the vehicle market gradually shifts toward EVs, buying a used electric car can reduce demand for new resources. This minimizes waste and further reduces environmental impacts, making buying a used EV one of the best-value eco-friendly choices​).

Technology and Range Limitations

Technological Advances in New Models

While newer models offer the latest features in EV technology, older EVs may lack the range, speed, and features found in the latest electric cars. Early EV models, such as the first-generation Nissan Leaf, offer an EPA-estimated range of around 100 miles, which can limit usability for longer trips.

Evaluating an EV’s Range and Battery Life

If you’re considering a used EV, test-driving the vehicle and asking about its current battery capacity can provide insights into its range and performance. Checking the original range when the EV was new versus its current range can help estimate its battery's health. The old EV’s range can be impacted by factors like previous driving habits and how frequently it was charged, making it essential to gauge the expected mileage between charges​.

Charging Infrastructure and Home Setup