Following the COVID-19 pandemic, the brand new and used automobile market has been tumultuous, with unprecedented worth hikes and main provide shortages reaching a crescendo in 2022. With some new automobile fashions taking months to order, many drivers have turned to used autos – however even these have been laborious to return by.
On the identical time, Individuals have confronted excessive gasoline costs as a consequence of rising inflation and the continued battle in Ukraine, main many to think about electrical autos.
In 2023, consultants count on provide chain points to stage out, resulting in extra stock on dealership tons. Even so, new automobile costs will seemingly keep excessive as we face ongoing inflation in 2023. Used automobile costs, nonetheless, might drop 10% to twenty% this 12 months, according to J.P. Morgan Research.
And with a brand new tax credit score going into impact in 2023 for used electrical autos, this simply may be the 12 months to put money into a pre-owned EV.
New to the used electrical automobile market? We’ve acquired you coated. Beneath, we’ll break down suggestions for purchasing a used EV, 5 of the perfect used electrical vehicles below $20K and the way a lot it prices to drive an EV.
7 Ideas for Shopping for a Used Electrical Automotive
How is purchasing for used electrical vehicles completely different from shopping for used gasoline vehicles? Primarily, you’ll have to concentrate on electrical vary and battery life. Listed here are seven tricks to be sure to discover a good one:
1. Make a Record of Potential Fashions — and Act Quick
The Nissan Leaf was the world’s first mass-produced all-electric automobile, and it continues to be among the many most reasonably priced greater than a decade later. However the used EV market now has much more choices, from the luxurious BMW i3 and Tesla Mannequin S to the sensible Ford Focus Electrical and Volkswagen e-Golf.
Think about Worth
In case you’re purchasing for a used EV on a finances, you’ll be able to take fashions just like the Audi e-tron and Tesla Mannequin S off your listing (although now that the BMW i3 has been available on the market so lengthy, you could find older fashions below $15,000). Set a max finances for your self, and analysis used EV costs inside your vary.
Among the extra reasonably priced choices will come from manufacturers like Nissan, Kia, Hyundai, Chevy and Ford. In case you want a great place to begin, scroll all the way down to our listing of the perfect used electrical vehicles below $20,000.
Think about Vary
Worth is barely half of the consideration. Take into consideration how you’ll drive your EV every day. What’s the max vary you’ll want for many day by day drives? Discover an electrical automobile in your worth vary that may go so far as you want it to on a single cost.
That method, you received’t have to fret about charging on the go.
In case you do plan to cost throughout an outing, make the most of DC (direct present) quick charging, additionally known as Degree 3 charging. A DC quick charging port will let you cost your automobile’s battery a lot sooner (in round half-hour), however you received’t get a 100% cost (DC quick charging sometimes yields as much as 80% of a cost).
Whereas most EVs may be charged with a DC quick charging plug, this isn’t at all times the case, particularly in older fashions. If among the earliest model-year EVs, take note of this characteristic.
Act Quick
When you’ve discovered just a few fashions you’re inquisitive about, plug them in (pun so supposed) to The FinanceGrabber automobile comparability spreadsheet to see which choice is finest for you.
When your most popular mannequin turns into accessible privately or at a dealership, act quick. Each used and new vehicles are promoting simply as shortly as they’re being listed. In case you don’t go for a check drive and make a proposal as quickly as potential, one other purchaser will.
2. Purchase From a DealershipÂ
Usually, you could find decrease used automobile costs by shopping for from a non-public vendor, however with regards to shopping for a used EV, chances are you’ll need to purchase from a licensed automobile dealership, even when the value is barely greater.
Why? Beginning this 12 months, the Inflation Discount Act’s new tax credit for used EV gross sales goes into impact. Prospects who purchase a used electrical automobile from a dealership could also be eligible for 30% of the sale worth in tax credit (as much as $4,000).
As with every tax credit, there are many stipulations. Take a look at this IRS resource to see for those who (and the used EV you need to purchase) qualify. The massive subject is that it solely applies to used EVs below $25,000. In line with Recurrent Auto, that’s simply 12% of used EVs available on the market.
Be aware: This tax credit score is nonrefundable.
3. Perceive How the Guarantee Works
When the unique driver bought their electrical automobile, the producer seemingly included an prolonged guarantee on the battery.
Lithium-ion batteries are the one most costly element of an EV. To assuage purchaser fears of replacements, automakers generally provide eight years (or 100,000 miles) of protection for brand new EV batteries. However not all warranties are transferable.
When doing preliminary analysis on a mannequin listed on the market, you possibly can ask the vendor for info on the guarantee, however it’s at all times higher to verify this your self. Discover the automobile’s VIN (automobile identification quantity), then name the producer’s customer support division to get the small print on the guarantee.
Particularly ask what number of years are left on the guarantee — and if it would switch to you with the sale. If there isn’t any transferable guarantee, be cautious of shopping for an older mannequin whose battery could also be on its ultimate legs.
4. Discover a Automotive That’s Lately Had Its Battery Changed
Alternatively, particularly for those who’re reaching again to high-mileage EVs from the start of the 2010s, discover an electrical automobile that has simply had its battery changed. Ask the vendor for receipts and paperwork confirming the battery alternative.
If the vendor can’t discover any paperwork however says the battery was changed, you’ll be able to usually verify the work by checking on a automobile historical past report from Carfax.
5. Use Battery Life to Haggle
If there isn’t any remaining guarantee on the battery and it hasn’t lately been changed, you should utilize the battery degradation to your benefit.
Ask the dealership for a full report on the automobile’s battery well being (or simply see what the estimated vary for the battery is after a full cost — there’s sometimes a gauge on the dashboard). Evaluate this anticipated vary to the vary that was initially marketed when this mannequin first went available on the market. If there’s a stark distinction, you’ve simply discovered a significant bargaining chip.
Keep in mind that now’s a tricky time to haggle. In case you are making an attempt to get the vendor to drop to a lower cost, they might simply move on the sale and watch for the subsequent purchaser to return in. (Stated purchaser might be simply minutes behind you on this present used market.)
In case you do get the vendor to drop the value, keep in mind that you’ll seemingly be paying to interchange the battery within the coming years. In line with Recurrent Auto, new EV batteries can vary from $3,000 to greater than $20,000. Ouch.
6. Take It to a Specialised Mechanic
Earlier than shopping for any used automobile, it is best to take it on a check drive to a trusted mechanic for a full inspection. The mechanic will inform you of any issues that the vendor could not have disclosed.
This helps you 1) haggle for a lower cost or 2) know when to stroll away from a foul deal.
When contemplating a used electrical automobile, discover a mechanic who makes a speciality of EVs. Not each mechanic has been skilled to work on an electrical powertrain, so it’s vital to slender your search all the way down to mechanics with an precise background in electrical automobile upkeep and repairs.
7. Think about Options: Hybrids and Plug-In Hybrids
In case you’re discovering the price of used electrical vehicles to be out of your worth vary, you don’t have to surrender on the notion of eco-friendly driving altogether — particularly as gasoline costs proceed to skyrocket.
Hybrid autos have been mainstream for much longer than EVs and don’t include any vary anxiousness. There’s no preliminary funding to put in charging infrastructure at residence, and hybrids are so widespread that discovering one in your finances shouldn’t be an issue.
You can even think about a plug-in hybrid. These fashions draw on electrical energy first, however for those who want further vary, there’s nonetheless a gasoline engine to finish your drive. Of the 2, used hybrids are sometimes cheaper (and simpler to search out) than plug-ins.
5 Finest Used Electrical Vehicles Below $20,000
As Recurrent Auto factors out, most used EVs available on the market nonetheless price greater than $25,000, making them ineligible for the used EV tax credit score. Whether or not it’s to qualify for the tax credit score or simply keep on a stricter finances, you’ll have to work from a shorter listing of used EVs to remain below $20K.
Take a look at fashions from the early to mid 2010s for the perfect costs. Costs will fluctuate primarily based on mannequin 12 months, battery situation, mileage and different components, however on the whole, the fashions under are the perfect used electrical vehicles below $20,000. (You’ll discover there’s no used Tesla mannequin on this listing!)
1. Nissan Leaf
Indubitably, the Nissan Leaf continues to be among the best used electrical vehicles accessible. This entry-level economic system automobile has all the everyday options you’re searching for — from airbags to an influence driver’s seat — in a extremely environment friendly bundle.
As a result of the Leaf has been available on the market the longest, there are many choices accessible, which retains prices decrease. Nevertheless, we significantly advocate one with a higher-capacity battery for a extra sensible vary, which implies the 2016 mannequin 12 months and onward.
You may simply discover a used Nissan Leaf within the $10,000 to $15,000 vary. Tremendous previous fashions may be listed under $6,000.
2. Kia Soul EV
The Kia Soul compact crossover was an on the spot hit due to its funky form and distinctive advertising (keep in mind these dancing hamsters?), so it didn’t take lengthy for Kia to launch an all-electric model. As a result of it’s been round since 2014, you could find Soul EVs listed within the $15,000-$20,000 vary.
For that worth, you’ll get extra than simply an environment friendly crossover; the Kia Soul EV has a spacious inside, smartphone connectivity and cutting-edge security tech, particularly on newer fashions (2018 was its final mannequin 12 months within the U.S.).
3. Chevy Spark EV
The Chevy Spark is a no-frills economic system automobile that changed the Chevy Aveo within the early 2010s. The electrical variant of it was short-lived and solely offered in just a few states, so discovering one available on the market would possibly show powerful.
However for those who’re capable of finding one — and don’t thoughts the intense lack of facilities — you’ll be able to count on to pay below $15,000 (or perhaps even below $10,000).
One shiny spot: The Spark has had a historical past of enjoyable colours through the years. Whereas a lot of the used Chevy Spark EVs can be white or black, you would possibly come throughout one thing with extra persona, like an Electrical Blue Metallic.
4. Fiat 500e
Although former Fiat CEO Sergio Marchionne famously didn’t want you to buy his Fiat 500e, the automobile itself is fairly good. The subcompact has fierce Italian styling and boasts as much as 87 miles of vary (greater than 100 for purely metropolis driving).
These fashions had very low manufacturing numbers, so discovering one close to chances are you’ll be a problem. In case you’re fortunate, chances are you’ll discover one for roughly $10,000-15,000.
5. Volkswagen e-Golf
You would possibly recall the Volkswagen emission scandal again in 2015, through which Volkswagen deliberately cheated to get higher EPA scores for its diesel autos. Whereas we’d keep away from any used diesel Volkswagen fashions from that period, the Volkswagen e-Golf is definitely a great decide.
The e-Golf is a hatchback with loads of cargo house and passenger house; whereas among the fashions on this listing can solely comfortably seat two, you’ll be able to match a household of 5 in an e-Golf. By 2017, it boasted an EPA estimated vary of 125 miles.
The e-Golf was made as lately as 2019, however these newer fashions are above our $20,000 threshold. Go additional again in mannequin years to search out one for round $15,000.
Honorable Mentions
Although these EVs didn’t make the ultimate reduce, they’re nonetheless value contemplating for his or her low costs and first rate vary:
- Kia Niro EV
- Chevrolet Bolt
- Ford Focus Electrical
- Hyundai Ioniq EV
- Hyundai Kona Electrical
- BMW i3
Take note of mannequin 12 months when doing analysis. The additional again you go, the extra reasonably priced autos are typically, however you’ll have to fret extra a few decrease vary and better battery degradation.
New vs. Used Electrical Vehicles
Automakers are betting massive on EVs. Ford is placing $22 billion towards electrification by means of the primary half of this decade, GM is planning for 30 electrical fashions by 2025, Honda and Toyota every plan to launch 30 EVs by 2030 and Volkswagen is aiming for 50% electrical gross sales by the identical 12 months.
Clearly, the market is about to be saturated with electrical vehicles (and electrical vehicles and SUVs — you’ll be able to even get an electric Mustang!). And with authorities incentives (like federal tax credit as much as $7,500) for brand new electrical fashions, it makes lots of sense to purchase new.
However not everybody can afford a brand-new Mannequin S from Tesla, and even the compact, all-electric Nissan Leaf is extra reasonably priced when purchased used. Plus, the continued chip scarcity and continued provide chain points are significantly affecting new electrical automobile gross sales, driving up costs and delaying supply (final summer season, it took a median of 4 months to get Volkswagen’s ID.4 mannequin).
Shopping for a used electrical automobile means a lower cost (common resale values are sometimes decrease for EVs since there’s much less demand). It additionally means no wait time; you’ll be able to head to the vendor lot, go for a check drive and take the electrical automobile residence that very same day.
However shopping for a used EV is just a little completely different from the everyday used automobile purchasing expertise. Arm your self with info earlier than heading to the vendor or non-public vendor to be sure to’re getting a great deal.
How A lot Does It Price to Drive an Electrical Car?
Electrical vehicles could have the next sticker worth, however are you able to get monetary savings over time? Right here are some things to bear in mind when deciding if an EV is value the fee:
Tax Credit
In case you purchased a brand new electrical automobile, you’ll be able to seemingly apply for a federal tax credit score as much as $7,500. Beforehand, while you purchased a used EV, you couldn’t apply for a rebate.
The Inflation Discount Act modified that beginning in 2023, establishing as much as $4,000 in tax credit for used electrical automobile purchases. Due to strict IRS necessities, nonetheless, consultants estimate only a few used EVs will truly be eligible.
Upkeep
A trademark of electrical vehicles is the shortage of routine upkeep. EVs don’t want common oil adjustments or air filter replacements, so you’ll spend a lot much less every year on repairs.
Remember: Once you do want to interchange the battery of your EV or have any primary restore work performed, the fee can be a lot greater than what mechanics cost for gasoline vehicles.
Charging
Whereas you should still purchase gasoline for a plug-in hybrid, a real 100% electrical automobile means you received’t have to fret about rising gasoline costs.
After all, you’ll have to pay for charging infrastructure set up at residence, and also you’ll discover a spike in your electrical invoice. Nevertheless, the price of charging an EV is way lower than what you’d spend on gasoline to journey the identical distance.
Insurance coverage
Insuring a used automobile is often extra reasonably priced than insuring a brand new automobile, however what about electrical fashions vs. gas-powered vehicles?
In line with ValuePenguin, EV homeowners ought to count on to pay 25% extra for automobile insurance coverage. Why? As a result of electrical autos are sometimes dearer to purchase and restore.
The Backside Line
Shopping for a used electrical automobile may end up in nice financial savings: They’re cheaper than new electrical vehicles, they’re now eligible for tax credit and also you’ll save some huge cash on gasoline through the years of possession.
However in as we speak’s market, even used vehicles may be expensive. Make a listing of vehicles inside your finances, know what to search for throughout your check drive and be ready to stroll away from a sale if the value isn’t proper.
Contributor Timothy Moore is a author and editor in Cincinnati, Ohio. He focuses on banks, loans and insurance coverage for The FinanceGrabber. His work has been featured on INSIDER, Sound Greenback, Forbes, HomeAdvisor, WDW Journal, Chime and SoFi..