The average used electric car is 43 to 72% cheaper than a new one, showing a significantly increased depreciation rate compared to internal combustion engine vehicles. Why are used EVs so cheap?
Used electric cars are cheap due to the increased depreciation of older models, reduced demand for redesigned or replaced models, and federal tax credits for electric cars. As new models hit the market, older ones are sold at more than reasonable rates.
This article will explain why electric cars lose so much of their original value. Read on if you also want to find out whether used EVs are worth buying and what are the best electric cars to get.
Why Electric Cars Lose Value Quickly
Most of us consider factors such as vehicle age and mileage the key elements in determining the rate at which a car depreciates. However, electric cars are proving us wrong.
Statistics show that ICE cars lose 40.1% of their value during the first five years. On the other hand, electric vehicles lose 51.1% of their value in just three years, or 36,000 miles (58,000 kilometers). What’s the reason behind this?
Before diving deeper into this topic, let’s take a look at the table that lists some of the most sought-after ICE vehicles.
| Make and Model | Year | Average Price Difference for Used Car Compared to New | Depreciation Rate |
| Ford Mustang | 2017 | – $7,280 | 21.0% |
| Toyota 4Runner | 2017 | – $10,818 | 24.6% |
| Porsche 911 | 2017 | – $20,710 | 12.8% |
| Audi A6 | 2017 | – $35,393 | 58.2% |
| BMW X5 | 2017 | – $36,210 | 60.3% |
Looking at the electric vehicles from just a few years ago, we can see some drastic changes compared to the models on the market today. For example, the first electric with the capability to get 100 miles (160 kilometers) with a single charge used to be regarded as a miracle.
On a somewhat similar note, I also wrote a related article and discussed if Electric Cars Are Cheaper To Insure. Check it out! Very helpful! In addition to that, understanding the factors that influence premiums can aid in making informed decisions when purchasing an electric vehicle. For those curious about the specifics, the article also dives into electric car insurance costs explained, providing insights on how these rates compare to traditional vehicles. It’s a valuable resource for anyone looking to navigate the complexities of insuring an electric car.
Less than five years later, we even have hybrid cars that can get this mileage out of their electric engine. Every major electric car manufacturer has at least one model that can get close to 400 miles (640 kilometers) with one charge.
In addition, most of these manufacturers are expected to come out with cars that can go over 500 miles (800 kilometers) without recharging.
In addition to the range, the technology that electric cars need to function properly and remain competitive has also been developing rapidly. It was somewhat new to have features such as autonomous parking just five years ago.
Photo @opasco via Twenty20
Modern electric cars are equipped with fully autonomous driving, 24/7 surveillance, and security cameras. Numerous other features that would have more resembled a science fiction movie than real life just half a decade ago are also considered the norm.
As these advancements such as battery life, range, and technology came rapidly, it should come as no surprise that the prices of the older and inferior models have dropped significantly.
| Make and Model | Year | Average Price Difference for Used Car Compared to New | Depreciation Rate |
| Hyundai IONIQ | 2017 | – $20,026 | 54.0% |
| Tesla Model 3 | 2017 | – $20,697 | 44.0% |
| Nissan Leaf | 2017 | – $22,793 | 69.0% |
| Tesla Model S | 2017 | – $47,734 | 50.0% |
| Tesla Model X | 2017 | – $48,532 | 45.0% |
Federal grants are also adding to the technological and range-related depreciation. In the US, all new electric and hybrid car buyers are eligible for a tax credit of up to $7,500. This tax break is taken from the total car’s total value, affecting its resale price.
Are Used Electric Cars Worth Buying?
Electric cars used to be regarded as unreliable and ineffective. There weren’t many models that could go over 250 miles (400 kilometers) with a single charge, and the charging network wasn’t as developed as it is today.
Combining these factors with their high price was a major deterrent for those on the market for a new vehicle.
While we were all hesitant to consider a used electric car as our next purchase just a few years ago, the situation has changed recently. Rapid technology improvements, significant cost drop, the vastly improved model offer, and infrastructure development have led to a massive shift in electric car sales.
According to the latest statistics and research, around 7% of adults in the US currently own an electric or a hybrid car, while 39% of those involved in the research plan on getting an EV. When it comes to Europe, the electric vehicle sales in some countries account for up to 58% of all car sales.
The increase in new electric car sales, technology improvements, and releases of new electric models have all led to a significant drop in used electric car prices. Close to 50% of used electric vehicles are priced under $25,000, making electric cars an excellent option for used car buyers. As more consumers embrace electric vehicles, the trend of declining prices is expected to continue, providing even more opportunities for buyers. Additionally, the growing market for used electric cars may contribute to more competitive future electric car pricing options, making them accessible to a wider range of budgets. This shift not only benefits individual consumers but also supports the overall transition to sustainable transportation.
Although this price applies to EVs not older than five years, even buying an older electric car can be worth it. More on this later in the text.
Reasons To Buy a Used Electric Car Now
This is the perfect time to buy an electric vehicle for multiple reasons. Here are the key ones:
Shared Features
The technology that the current generation of electric vehicles uses has been around for some time. This means that the models from a few years ago are also equipped with the same systems. What’s included in these shared technological features?
- Safety features (automatic emergency braking, collision warning systems, etc.)
- Convenience features (automatic parking, autonomous driving, smart cruise control, etc.)
Additionally, used electric vehicles share all of the features that make newer models so desirable:
Buying a used EV offers the benefit of lower maintenance compared to a regular ICE vehicle. There are no regular oil changes and potential engine trouble that can come with the lack of maintenance.
Although their range might not be in the hundreds of miles, older electric cars still don’t require gas. Not being affected by the fluctuating gas prices is one of the main reasons we’re so interested in electric vehicles, to begin with.
Battery Technology
In addition to these shared features, electric cars that are currently in production also share the battery and charging-related technology with the EVs from a few years ago. This means that you can get a car that can go over 300 miles (480 kilometers) for a fraction of the price of the new model.
You should also look into models older than five years, especially for those who are driving a more modest distance every day.
According to research, battery degradation sits at around 2.3% per year. This means that an electric vehicle that originally had a single-charge range of 150 miles (240 kilometers) has lost around 17 miles (27 kilometers) of range after five years of use.
Excellent Prices
As already mentioned above, electric cars lose their value quickly. While everyone is after the newest and flashiest model, EVs from just a year or two ago are up for grabs. So, those on the market for a used electric car can get some excellent deals.
The increased inventory of electric cars on used vehicle lots over the last year has led to a significant drop in prices. Even though this situation can change, it’s just one of the reasons why buying a used electric car might be a good choice for you.
Here are just some of the used and new electric car prices to keep in mind:
- The average price for a new electric car is $55,600.
- 48% of used electric cars cost under $25,000 and 30% are priced under $20,000.
Those who are looking to buy a used EV in this price range shouldn’t hesitate with their purchase. Still, they’ll need to decide which electric car to buy. Read on to find out more about this topic.
Best Used Electric Cars
After going through why electric cars are cheap and discussing the benefits of getting one, it’s time to list the best used electric cars: These vehicles not only offer exceptional savings on fuel and maintenance but also contribute to a greener planet. To help you make an informed decision, we’ve compiled the ultimate guide to electric car ownership, which covers everything from charging options to government incentives. With this knowledge, you’ll be well-equipped to choose the perfect electric car for your needs.
Best Used Luxury Electric Cars
If you’re after a used luxury electric car, your choices are a few Tesla models, as well as a couple of models from a few other renowned car manufacturers.
| Luxury Electric Car Model | Age | Average Price |
| Tesla Model S | Under 5 years | $69,278 |
| Tesla Model X | Under 5 years | $71,876 |
| Jaguar I-Pace | Under 5 years | $49,400 |
| Porsche Taycan | Under 3 years | $105,150 |
The cars listed in the table above might have an average value of over $70,000, but what should be considered is their original prices and the bang for the buck they offer. Here are just some of the things to note about these used luxury electric models:
- The cheapest of them (Jaguar I-Pace) costs over $85,000 new.
- The most expensive one (Porsche Taycan) can cost up to $185,000 new.
Going in favor of the used versions of these electric cars is that the current versions haven’t had any significant upgrades that would make them worth the price difference. They all still have similar ranges, the same technology, and the same looks they had five years ago.
Best Used Medium-Sized Electric Cars
Are you after a newer medium-sized sedan or a compact SUV that’s purely battery-powered? Look no further, as this is the list
| Medium-Sized Electric Car Model | Age | Average Price |
| Tesla Model 3 | Under 5 years | $46,100 |
| Volvo XC40 Recharge | Under 3 years | $55,085 |
| Hyundai Kona Electric | Under 3 years | $38,330 |
| Kia Niro | Under 3 years | $23,938 |
Here are some things to note about these mid-sized electric cars and their ranges:
- Tesla Model 3 has the highest single-charge range at 310 miles (just under 500 kilometers).
- Kia Niro has the lowest single-charge range at 239 miles (around 380 kilometers).
If you’re after a used electric car that has an impressive range and can accommodate your entire family, then one of the vehicles listed above might be the perfect choice for you.
Best Used Small Electric Cars
In case you’re after something more affordable that still significantly lowers your carbon footprint, here’s the list of the best used small electric cars:
| Small Electric Car Model | Age | Average Price |
| Nissan Leaf | Under 5 years | $18,882 |
| Volkswagen e-Golf | Under 5 years | $18,550 |
| BMW i3 | Under 5 years | $21,362 |
| Smart ForTwo Electric | Under 5 years | $12,928 |
Smaller electric cars also come with smaller battery packs, which is just one of the things to remember when buying a used electric vehicle.
While the first two models can easily exceed 100 miles (160 kilometers) per charge, the other two have a slightly more modest range. Still, all of these small electric cars are perfect for zipping around the city, and they’re offered at amazing prices.
Best Older Used Electric Cars
Even older electric cars can be worth considering as your next used car purchase, especially if you don’t need the technology and mileage that the newer models come with.
Let’s take a quick look at the table of some of the most popular older EV models and their characteristics and prices:
| Electric Car Model | Year | Range | Price New | Price Used |
| Chevrolet Volt | 2014 | 38 miles (60 kilometers) | $40,000 | $15,000 |
| Ford Focus Electric | 2014 | 76 miles (120 kilometers) | $39,200 | $10,000 or under |
| BMW i3 | 2014 | 81 mile (130 kilometers) | $41,000 | $17,000 |
| Nissan Leaf | 2014 | 84 miles (135 kilometers) | $36,000 | $8,000 |
The ranges listed for the vehicles in the table above might not seem impressive compared to the latest electric car models. However, the average commute in the US is around 16 miles (25 kilometers). This means that cars that can get around 60 miles (100 kilometers) per charge are more than enough to satisfy the average commuter’s needs.
Here’s a useful video going through used EVs under $15k:
EV Speedy’s Take
Used electric cars can be cheap, but it doesn’t have to be bad news:
It can be good news for those looking for a used electric car. You can get a low mileage, one-year-old model for up to 72% cheaper than the new one. This is a great deal that every EV shopper should consider.
