If you’re considering an electric vehicle (EV) but the price of a new one has you hesitating, experts say it might be the time to consider a used model. The number of used EVs on AutoTrader have more than quadrupled since 2019, Baris Akyurek, the company’s vice-president of insights and intelligence recently said – with over 8,000 models available, as of April. The price of a used EV also dropped by 11% this past year.
“Supply is there, demand has been declining, and prices are coming down,” Akyurek noted. “So. if you’re in the market, if you’re on the fence, [it’s] definitely a good time to be looking for a used EV.”
“What we’re seeing is an extremely reliable and low-cost-to-maintain car, so it’s a good bet for a used vehicle,” added Cara Clairman, president and CEO of EV advocacy group Plug’n Drive.
Why are used EV prices dropping?
Supply-and-demand is a significant driver behind the falling prices. With greater availability of new electric cars, buyers are trading up their existing models. In the first quarter [of 2024], inventory levels of new EVs are up by over 500% on a year-over-year basis compared to last year, Akyurek,said.
Do EV batteries last?
Experts say that for those wanting to go electric at a lower price point, there is value in the used market, although there are a few things to consider – including the age, mileage and condition of an EV. Perhaps most importantly is the battery that powers the motor. There is a chance the battery life might not charge to 100% because EV batteries, like those in cellphones and laptops, lose capacity over time and through repeated charging, resulting in lower range.
Many factors can influence that degradation, says Olivier Trescases, a professor of energy systems at the University of Toronto who studies EV battery technology. Extreme temperatures, both cold and hot, can cause a battery to degrade faster. So can a reliance on high-power fast chargers, as well as a person’s driving habits, like excessive acceleration. The chemistry of the battery itself can also have an impact.
With some EV models now over a decade old, Trescases says there’s a better understanding of how that degradation occurs. Typically, he says, EV owners will see an initial steep drop of around 5%, but the loss will level off before dropping again. According to data from Geotab, collected over approximately seven years from 21 different EV models and published in 2020, there is an average degradation of 2.3% per year. A 2023 analysis by the company suggests that newer models experience less degradation annually.
What to ask about a used EV battery
A key metric to look for is the battery’s state of health, which calculates the remaining capacity. It’s a number often provided by the car’s computer but can also be confirmed by a dealer or technician. It is recommended that buyers avoid models with less than 90% state of health. The vehicle’s warranty is also crucial. Most EVs are covered for up to eight years, helping to protect you from a problem with their biggest component.
The following is a checklist of questions to ask when examining options, to further assist in assessing a battery’s health:
- Was the car stored in a climate-controlled area?
- Was the car used for long-distance driving? (Repeated deep discharges can have a negative impact.)
- Was it charged at home or using a fast charger?
- What is the displayed range of an EV at normal temperatures, and how does that compare to the manufacturers’ maximum range?
- Did the previous owner drive aggressively?
Should you buy a used EV?
As with any used vehicle purchase, you should go over its history with a fine-tooth comb. Aside from the remaining warranty and battery, buyers should confirm whether the car is still receiving software updates and if it was subject to any recalls – and whether those were addressed.
While they may have a shorter range, Trescases says at least when it comes to battery, there’s reason to be hopeful about getting a cheaper EV used.
“In the early days of EVs, we overestimated the amount of degradation,” he said. “So, I think that, in general, consumers should not be afraid to buy used EVs.”
Research shows only 2.5% of EV batteries have been replaced, so far
Research has found that newer EVs generally need fewer battery replacements. According to a report from Recurrent, older EVs boast the highest incidence of battery replacements. For newer EVs – 2016 and younger – less than 1% have required a battery replacement outside of recalls. When removing recalls from the scenario, only 2.5% of battery packs in 2011 to 2024 model-year EVs have been replaced so far. Additionally, from 2015 to 2022, the average battery size jumped 122%, meaning newer EVs have more room to lose capacity before necessitating a replacement. Thermal and battery management systems also continue to improve, so the life of EV batteries will get better moving forward.
Source: CBC Radio, GM Authority
