Why Now is the Best Time to Buy a Used Electric Vehicle
It’s no secret that the used electric vehicle (EV) market can offer some incredible bargains. The combination of steep depreciation and customer concerns about battery life often result in low prices for EVs just a few years old. However, according to Edmunds, now is an exceptionally good time to buy a used EV, as their values have experienced a significant drop from last year.
The overall used car market has seen a decrease in prices, with a 6.8% drop in Q2 2023. This makes it a favorable time to purchase any type of used car, regardless of propulsion. However, the decline in prices for pre-owned EVs is particularly striking, with a staggering 20.5% decrease from Q2 2023 and an even more astonishing 38.5% drop from Q2 2022. This means that now is the best time in years to buy a second-hand electric vehicle. And the potential for additional savings through tax credits for qualifying models only adds to the appeal.
While used EVs may still be more expensive than used internal combustion engine (ICE) cars on average, this is mainly due to the higher price of new EVs. However, the gap between the prices of used EVs and used ICE cars is narrowing. In Q2 2024, the average transaction price for a used ICE car was $27,391, while the average price for a used EV was $33,787. Comparing these figures to just a year ago, the average prices for used ICE cars and used EVs were $29,382 and $42,482, respectively. This shows a significant decrease in the average price of used EVs, making them a more affordable option for potential buyers.
Moreover, used EVs tend to be newer and have fewer miles on average than used ICE cars. In Q2 2024, the average used ICE car was 4.5 years old with 52,478 miles, whereas the average used EV was 2.7 years old with 29,430 miles. This means that a used EV can offer a relatively newer and lower-mileage vehicle compared to a used ICE car.
Considering all these factors, it becomes clear that now is the opportune moment to purchase a used electric vehicle. One model that stands out in particular is the BMW i3. Despite its initial disappointment when it was new due to its high cost and limited range, the i3 has become an excellent option as a cheap used car. For under $12,000, buyers can find a low-mileage, rear-wheel drive, all-electric hatchback with a carbon fiber chassis and a spacious interior. The depreciation of used EVs makes the i3 even more affordable and appealing for those seeking a budget-friendly electric vehicle.
In conclusion, the current market conditions make it an ideal time to buy a used electric vehicle. The significant drop in prices, the narrowing gap between used EV and used ICE car prices, and the newer, lower-mileage options available in the used EV market all contribute to the appeal of purchasing an electric vehicle. With the potential for additional savings through tax credits, buyers can find great value in the used EV market. So, if you’re considering buying a used EV, now is the time to take advantage of the incredible deals available.