Why Consider a Used EV?
The used electric vehicle (EV) market is expanding as the new EV market matures, offering buyers a chance to experience electric motoring at a lower entry cost. A used EV is an attractive option for those looking to sample the electric lifestyle without the initial high cost of a new vehicle. This guide will walk you through the key considerations when shopping for a pre-owned electric vehicle.
One of the primary reasons to consider a used EV is the cost savings. Just like internal combustion engine vehicles, used EVs cost less than their brand-new counterparts, primarily due to depreciation. Additionally, many new EVs are leased rather than purchased outright, often with low annual mileage limits. This means you can find three-year-old EVs with relatively low mileage, sometimes under 30,000 or even 15,000 miles.
EVs typically have smaller odometer readings because they generally offer less range than their gasoline-powered counterparts. This reduced range often means they’re used for shorter trips and daily commutes rather than long road trips. You might also find EVs that were used as second cars or by owners who decided the EV lifestyle wasn’t for them, presenting an opportunity to purchase a lightly used vehicle.
Once purchased, EVs offer ongoing savings on fuel and maintenance. Charging at home, especially during off-peak hours, can reduce your electricity costs. Moreover, EVs require less frequent visits to the service bay since they don’t need regular oil changes.
Assessing Battery Health
A primary concern when buying a used EV is the condition of its battery. Battery capacity can degrade over time due to charging and discharging patterns. To assess battery health, first fully charge the vehicle and check its estimated range. If the range is near or within 10-20% of the EPA-rated range, it’s a good sign. However, if the range is significantly lower than expected, it may indicate battery degradation.
You can also research the general capacity loss for the specific EV model on websites like Recurrent Auto. While this won’t provide exact information about the vehicle you’re considering, it offers valuable insights into what to expect. For a more detailed assessment, consider hiring a professional to check the battery pack using specialized diagnostic equipment.
It’s worth noting that most EV manufacturers provide warranties on battery systems for up to eight years or 100,000 miles, offering some protection for buyers.
Understanding Depreciation
EVs tend to depreciate more rapidly than comparable internal combustion engine or hybrid vehicles. This is partly due to the evolving nature of EV technology, with manufacturers regularly updating batteries, motors, and charging systems. Additionally, many initial EV buyers benefited from state and federal incentives, which reduced their purchase costs.
Certified Pre-Owned vs. Private Sale
When purchasing a used EV, consider whether to buy a certified pre-owned (CPO) vehicle or from a private seller. CPO vehicles typically come with extended warranty coverage and have been inspected to meet certain condition, mileage, and age criteria. Research the CPO program offered by the manufacturer to determine if the additional cost is worthwhile.
Buying from a private seller can provide insights into how the vehicle was used and may offer opportunities for negotiation. However, it often lacks the warranty protection offered by CPO programs.
Available Incentives
The federal government and some states offer incentives for purchasing used EVs, such as the Used Clean Vehicle Credit. These incentives often come with income and vehicle price limitations, so it’s essential to check eligibility before making a purchase.
Financing and Insurance
Financing a used EV is similar to financing any other used vehicle, typically through an auto loan. However, insurance rates for EVs can be higher due to the potentially high cost of repairs, particularly battery replacement. It’s advisable to obtain insurance quotes for the vehicles you’re considering before making a decision.
By carefully assessing the battery condition, understanding depreciation, exploring available incentives, and considering financing and insurance costs, you can make an informed decision when purchasing a used EV. This careful research can lead to a great deal and a smooth transition into electric motoring.
