Used electric vehicles getting cheaper than ever: Make a good deal

Electric cars (EVs) have become reasonably priced over time.

Back in 2008, Tesla’s initial model, the Roadster carried a price tag of $109,000. The new EVs are still too high for most Americans.

According to a survey conducted by Edmunds, 47% of EV purchasers aim to pay $40,000 or less for an EV, an amount that can’t get you some decent EV models in the US.

In the past, purchasing a used EV was not always feasible for budget-conscious consumers. However, the landscape has shifted now as used EVs are more affordable thanks to multiple reasons. Moreover, advancements in battery technology have reduced concerns about running out of power in the middle of travel.

Tesla holds 51% of the market share for EVs, according to Kelley Blue Book. Following price reductions over the year, prices for used EVs have decreased by approximately 10%. Additionally, Hertz has entered the market by selling owned EVs which has further contributed to lowering prices.

Similar to smartphone batteries EV batteries degrade with time. However, most modern EV models are expected to outlast their batteries’ lifespan.

When considering purchasing an owned EV, it is essential to focus on the condition of its battery as most come with warranties covering eight years or 100,000 miles. If the battery fails during this period the company will provide a replacement.

Also, take into account any tax benefits. The Inflation Reduction Act gives a tax break of $4,000 for used electric vehicles priced at $25,000 or below. Used EVs priced under $25,000 that qualify for the tax break are being snapped up rapidly, according to Liz Najman, director of market insights at EV research firm Recurrent.