The new electric vehicle (EV) market is still in its infancy, but used EVs are now popping up for sale online and in dealer lots. With the current average EV transaction price being a steep $55,000, an old Tesla, Nissan, Chevrolet or Volkswagen may be a more feasible option for budget-conscious buyers.
But buyers beware: Used EVs come with risks and complications that may be foreign to buyers of traditional internal combustion engine (ICE) vehicles.
There are many things for used EV buyers to consider beyond price point and roadworthiness of the model. They should be thinking about battery health, range degradation and warranties, as opposed to the usual roster of checkbox considerations in ICE vehicles like oil change frequency and transmission health.
Like any EV buyer, used EV shoppers also need to be concerned about their access to charging infrastructure, whether at home, at the office or on the go.
"Buying an EV—used or new—is a good option. They're environmentally friendly, fun to drive and offer sophisticated technology that enhances the driving experience. However, the decision to buy should be based on the owner's needs and geography," Lori Wittman, president of retail solutions at Cox Automotive, a heavyweight in the automotive services space, told Newsweek.
"Current charging infrastructure can still be scarce in rural areas. A buyer's driving patterns should be a consideration, too, as not everyone's habits are conducive to being limited by battery range. Climate and topography should also have a role in the purchase decision, as extreme temperatures or mountain driving can contribute to faster battery drain."
Not all EVs qualify for tax credits.
Under the rules established by the Internal Revenue Service (IRS) following the passage of the Inflation Reduction Act, used EVs now qualify for a federal tax credit of 30 percent of the retail sale price, capped at $4,000, as long as the car that is purchased fits certain criteria.
The vehicle must cost less than $25,000, be at least two years old and have a battery capacity of at least seven kilowatt (kW) hours. Further, buyers cannot have claimed another used vehicle credit within the past three years and the vehicle can't be for resale. It also has to be purchased from a dealer, not a private seller.
Batteries age and lose range.
Over years of use, batteries lose their ability to deliver the promised all-electric range from when the car was new. According to telematics and fleet management company Geotab, the rule of thumb is that an EV battery will degrade at about 2.3 percent per year. For example, a car with an initial 200-mile range when new may only be able to go 178 miles on a full charge after five years.
Electric vehicles display their overall battery health either in the instrument cluster or deeper in the central display menus. Buyers can cross-reference this information with the range at 100 percent battery charge and check the difference between them and the vehicle's original specs to get a full picture of what they're buying.
Vehicle health reports, like the kind Carfax sells, can be helpful to used car buyers, letting them know if the model has been in an accident, part of a flood insurance claim, had recalled parts repaired or if it has had its battery replaced.
EV batteries come with a federally mandated minimum warranty of eight years or 100,000 miles (10 years and 150,000 miles in California), but only some are transferable from buyer to buyer. Shoppers will need to investigate each specific manufacturer and may want to see if the dealer they want to purchase from is willing to offer the car with a certified pre-owned (CPO) warranty.
"Anxious shoppers tend to focus on the high cost of replacing the high-voltage battery—$10,000 is certainly a surprise cost that most car shoppers could not afford to pay. However, we're finding that used EVs and their batteries are lasting a lot longer than most people realize," Scott Case, CEO of Recurrent, a used EV shopping website, told Newsweek.
The company found that only 1.5 percent of batteries have been replaced outside of recalls in the past 10 years, and most that have had replacements are much older models.
Maintenance includes new parts and might require car tech assistance.
Making sure an EV is in good working order requires a different checklist than an ICE vehicle inspection would have. EVs have about 10 percent of the moving parts of ICE vehicles in their powertrains. Thanks to regenerative braking, mechanical brakes don't age as quickly. EVs don't need oil, transmission fluid nor any of the related filters. They do use coolant, but the changes are less frequent and usually done by the dealership.
In fact, most EV maintenance needs to be done at a dealership rather than a mechanic's shop or at home due to the amount of specialty equipment required.
"Every EV owner should consider battery health, but buying a used EV can be less risky than buying a used gasoline car," said Case. "A gasoline engine has thousands of moving parts that are more likely to break down as a car gets older, and may not be covered under warranty past the first owner."
About the writer
Jake Lingeman is the Managing Editor for the Autos team at Newsweek. He has previously worked for Autoweek, The Detroit ... Read more
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