According to the car experts at Edmunds, there are good reasons to consider a used electric vehicle (EV) – although there are some important things to consider, if you want to get the best value. The following tips provide some important insights.
Research the Possible Fuel Cost Savings
An EV typically costs less to charge and drive than paying to fill up the tank of a gas- or diesel-powered car, allowing you to save money on your monthly fuel bills – but you’ll need to crunch some numbers to find out how much. The EPA’s fueleconomy.gov website is a helpful resource for comparing the efficiency and annual fuel costs of different vehicles. Make sure to enter personalized information about how much you’ll be paying for electricity, if you charge at home. Unlike the relatively stable pricing of gasoline, electricity costs vary widely depending on where you live and how you charge. For addition details, check out Edmunds’ How Much Electricity Does an Electric Car Use?
Certain Used EVs Qualify for a Tax Credit
As of Jan. 2023, the IRS revised its policy on EV tax credits on used vehicles that cost $25,000 or less. Eligible vehicles qualify for a tax credit of 30% of the purchase price, up to a maximum of $4,000. There are many caveats, but the eligible vehicle list is quite generous. Perhaps the biggest limitations are that you must buy from a licensed dealer and the vehicle’s model year must be at least two years earlier than the calendar year when purchased. Learn more from the IRS’ Used Clean Vehicle Credit page and the EPA’s search function for eligible vehicles.
Used EVs Have Less Range Than New Ones
The federal government requires EV manufacturers to warranty their batteries for eight years or 100,000 miles. That means battery life is a consideration, but it’s probably not the biggest one. An analysis of 6,300 EVs by the fleet-tracking firm Geotab concluded that the rate of battery degradation of the EVs it tracked was slower than the usable life of the vehicle. The average rate of decline in Geotab’s tracked vehicles was 2.3% per year.
This is something to consider, especially with EVs that didn’t have long range on a full charge to begin with. For example, at the 2.3% degradation rate, a 2020 Hyundai Ioniq EV that had a 170-mile maximum range when new might be down to 150 miles after five years. Ambient temperature, climate control use, driving style and terrain greatly influence range as well.
Factor in the Cost of Home Charging Installation
For many of the drivers in our industry, installing a home charger is not really a viable option, but those that can do so need to factor in the cost of having one installed. Charge times are dependent on many factors, but it is recommended that you get a home 240-volt charging setup. It’s a lot quicker and convenient than trying to charge an EV with a regular 120-volt power cord. A new home charger typically costs $200 to $600 and requires 240-volt wiring or an equivalent power outlet. Installing an upgraded outlet can add another $500+ to the total cost.
Source: Associated Press
