Used EVs have never been cheaper. But are they a good deal?
5 hours ago
- #Depreciation
- #Electric Vehicles
- #Used Cars
- Used electric vehicles (EVs) are experiencing significant price drops, with models like the Nissan Leaf and Hyundai Kona seeing prices fall dramatically from their original MSRP.
- Luxury EVs, such as the Audi e-Tron GT, are also depreciating sharply, with prices dropping by more than half in just a few years.
- Government incentives can further reduce the cost of used EVs, with federal tax credits available for income-qualified buyers.
- Despite lower prices, concerns remain about rapid depreciation and battery health, which can affect long-term value and usability.
- Battery technology has improved, but warranties typically only cover batteries that fall below 70% capacity, making original range a key factor in depreciation.
- Teslas tend to depreciate more slowly due to their longer initial ranges (300-400 miles) compared to other EVs.
- EV depreciation rates converge with gas-powered vehicles after the first 2-3 years, leveling the playing field for long-term ownership.
- Shopping for used EVs can be challenging due to a lack of standardized battery health information, though some dealers provide battery ratings.
- Buyers can mitigate concerns by testing battery capacity before purchase or opting for cheaper EVs for short-range, low-maintenance use.
- A surge in leased EVs entering the used market in coming years may further impact prices, though the overall trend suggests reduced volatility.