Buy Low, Cell High: What to Look Out for When Buying a Used EV
The used electric car market has experienced significant fluctuations in recent years. Initially, prices skyrocketed due to supply chain disruptions and the COVID-19 pandemic, leading some used EVs to command more than their original list prices. However, with the broader availability of new EV models and growing uncertainty about their long-term viability, prices have stabilized and even slightly increased against falling used ICE (Internal Combustion Engine) car values.
Market Trends and Statistics
- Price Shifts: By September 2024, a three-year-old EV was 8.5% cheaper to buy than a petrol car of equivalent age and mileage, according to data from market analyst Cap HPI.
- Sales Growth: The Society of Motor Manufacturers and Traders recorded more than 53,400 used electric car sales in the third quarter of 2024, a rise of 57% on the same period in 2023.
- Market Dynamics: The lower prices are driving demand, making it a superb time to buy before prices rise further.
Key Considerations for Buying a Used EV
The golden rules for buying a used EV are similar to those for a used ICE car, with some additional considerations:
- General Checks:
- Check for even gaps and matching paint across all panels for signs of accident damage.
- Read previous MOT test reports.
- Run thorough checks on the vehicle’s history for finance, theft, or other issues.
- Battery Health:
- Battery Degradation: Batteries degrade over time and usage. High and low temperatures, frequent fast charging, and extreme states of charge can accelerate degradation.
- Assessment Tools: Some EVs offer battery health readouts on the dashboard, but many do not. Websites and tools can provide estimated battery range and health based on the vehicle’s VIN.
- Warranty Considerations: Many EVs come with battery warranties that last 8-10 years or more. Check if the warranty covers battery failure and capacity degradation.
- Additional Tips:
- Certified Pre-Owned (CPO) EVs: Consider purchasing a CPO EV for extra assurance. These vehicles often come with additional warranty coverage and have undergone inspections.
- Maintenance and Service Records: Ensure the used EV has received regular maintenance and scheduled service. Ask for service records to confirm the vehicle has been well-maintained.
- Title Check: Obtain a title check from a reliable source like the National Motor Vehicle Title Information System (NMVTIS) and cross-reference it with tools like Carfax or AutoCheck.
Understanding Battery Degradation
- Factors Influencing Degradation:
- Temperature: High temperatures accelerate chemical reactions, leading to faster degradation. Low temperatures reduce the battery’s ability to efficiently accept and hold a charge.
- Fast Charging: Frequent use of rapid charging stations can contribute to battery degradation due to increased temperature and strain on the battery.
- Usage and Mechanical Stress: The deeper a battery is discharged, the faster degradation will occur. Mechanical stresses from the shuttling of lithium ions can cause additional lithium loss and higher resistance.
Financial Incentives
- Federal Tax Credit: The federal tax credit for used EVs is worth up to $4,000 and is available for vehicles bought on or after January 1, 2023. The credit can be transferred to an eligible dealer for an immediate discount at the time of purchase.
- State and Local Incentives: Many state and local governments or electric utilities offer financial incentives on used EVs. Check local resources for more information.
Where to Purchase
- Dealerships: Used EVs can be purchased from franchised dealerships, used car dealers, or private sellers. Some dealers specialize in used EVs.
- Online Platforms: Websites like Edmunds, CarGurus, and MYEV.com offer specialized search tools and detailed information on battery health, range, and charging times to help find the right used electric car.
Popular Used EV Models
- BMW i3 (model years 2014–2021)
- Chevrolet Bolt (model years 2017–2022)
- Ford Mustang Mach-E (model years 2021–2022)
- Hyundai Kona Electric (model years 2019–2022)
- Kia Niro EV (model years 2019–2022)
- Nissan Leaf (model years 2011–2022)
- Tesla Model 3 (model years 2017–2022)
- Tesla Model S (model years 2012–2021)
- Volkswagen ID.4 (model years 2021–2022)
Additional Resources
- Edmunds: Offers a user-friendly search tool that filters by engine type and location, providing comparisons of prices, vehicle conditions, estimated battery range, and vehicle features.
- CarGurus: Provides market value comparisons, dealer ratings, and transparent pricing information to help find the perfect EV within your budget.
- MYEV.com: Offers specialized search tools tailored for EV buyers, including comprehensive filters and detailed information on battery health, range, and charging times.
