Should I Buy a New Or Used Electric Car? (6 Tips)

Electric vehicles are becoming much more popular over the past several years.

Once viewed as a toy for rich people, they are now becoming the primary means of transportation for many middle-class families.

Should I Buy a New or Used Electric Car?

The delivery time on new electric cars has gone up over the last year, as there is a shortage of cars on the market, in general. That means it makes more sense to buy a used electric car these days. Also, electric cars depreciate quickly, which means it’s wise to buy a used model.

Do electric cars lose value as fast as gas-driven cars?

It is generally shown that gas-powered and electric vehicles lose their value at about the same rate for the first several years of ownership.

In recent months, however, it seems that electric vehicles are actually gaining in value in some markets.

A lot of this volatility can be attributed to the rising cost of gasoline. Consumers are looking to trade in their gas-guzzling vehicles for electric models that they can charge on their own.

That doesn’t mean that all-electric vehicles are gaining in value, however.

While there is a very high demand for late-model electric vehicles, cars that are near the end of their battery life are still seeing sharp drops in price.

This has always been true of electric cars; they tend to have a steep drop-off in price around the point where their battery life starts to significantly diminish.

Keep in mind, however, that gasoline powered vehicles have also always experienced a steep decline in prices around the seven to ten year mark, as maintenance costs for expensive items such as transmissions and engines have to be factored in by potential consumers.

It can also be a good idea to buy an ALMOST new car that is still sitting at the car dealer. You can read more here about what happens to cars that don’t get sold.

How long is the wait to get a new electric car?

Before the pandemic, electric cars were generally readily available, but there were several months of wait time for vehicles that were being imported from Europe and sport models.

Over the past several months, however, many consumers have reported that they are waiting anywhere from three to nine months for standard electric cars, while specialty and sport model wait times have increased to over a year.

There are several reasons for this delay.

The start of the pandemic saw a sharp decrease in the number of parts that many manufacturers were able to get. Electric vehicles require a high number of specialty parts and computer chips, making them particularly difficult to produce.

With demand for gas-powered vehicles at a relative high point and gas prices decreasing, many manufacturers suspended production of their electric cars.

Lately, however, the demand for electric vehicles has surged.

Unfortunately, many of the manufactured components needed to produce these vehicles are still not readily available.

That means that many consumers have been forced onto waiting lists for new vehicles. That, in turn, has sent the demand and prices for used electric vehicles soaring.

Do electric cars depreciate quicker or slower than gas-driven cars?

Before the pandemic, it was generally shown that gas-powered and electric vehicles depreciated at about the same rate for the first several years of ownership.

In recent months, however, it seems that electric vehicles are actually gaining in value in some markets.

For example, used 2019 Telsa Model 3s are now selling for around $50,000, nearly the same price they were sold for three years ago.

While there is a very high demand for late model electric vehicles, cars that are near the end of their battery life are still seeing sharp drops in price.

This has always been true of electric cars; they historically have had a steep drop off in price around the point where their battery life starts to significantly diminish.

Keep in mind, however, that gasoline powered vehicles have also always experienced a steep decline in prices around the seven to ten year mark, as maintenance costs for expensive items such as transmissions and engines have to be factored in by potential consumers.

Today, however,older model electric cars seem to depreciate at a much slower rate.

For example, a 2011 Nissan Leaf is now retailing for around $10,000. That’s nearly the same price as a 2011 Ford F-150.

That’s fairly significant considering that the F-150 originally retailed for $20,000 more than the Leaf.

The difference, of course, is that even though the battery on the Leaf will need to be replaced soon, it will likely cost the owner a lot less in gas than the F-150.

What is the expected lifespan of electric cars?

The very earliest electric cars were believed by many to have lifespans of less than ten years, largely due to the fact that the battery on these cars was a new technology that had not yet been tested under real-world conditions.

Over time, the batteries put into electric cars have improved, and many manufacturers now claim that batteries can last for up to 15 years or more.

The battery on an electric car is the main component that determines the lifespan of the vehicle, but there are several other components that also have to be considered.

The engine and transmission are both components that have to be inspected before a purchase, just like a standard gasoline powered car.

Electric cars may last longer than expected

While there are much fewer electric vehicles that are reaching the end of their lives than there are gasoline powered ones, there is growing evidence to support the idea that the new technology used in these components is more durable, giving electric vehicles a longer overall lifecycle.

With that in mind, it’s usually estimated that the average lifespan of an electric vehicle is around 15 years.

This can be extended with battery replacement and other maintenance.

Most electric vehicle owners plan to own their cars for about 5 to 7 years, however.

Around this time the batteries in older models will start to wear down, but they can still have several years of life left in them if an owner is willing to charge a little more frequently.

That means that it is possible to find used electric cars at this age on the market.

Is the market for used electric cars and gas-driven cars comparable?

Comparing the market for both types of vehicles has been made significantly more complicated by the pandemic, the war in Ukraine, and the economy in general.

Several years ago it was fairly easy to state that electric cars would have higher initial selling prices than similar Hybrid or gasoline powered models, but that they would maintain their value for several years before experiencing a steep drop-oof near the end of its battery’s life cycle.

Last year, electric cars and gasoline powered vehicles were selling for nearly the same prices, as demand for all types of vehicles was growing much faster than manufacturers could produce vehicles.

Today, however, electric vehicles are selling for more than their gasoline-powered cousins, mostly due to the sharp spike in gas prices and a growing call from companies to have their employees commute to work.

Prices for gasoline powered cars, on the other hand, are expected to slowly decrease as gas continues to rise and components needed for their manufacture become more available.

This likely means that in the used markets, electric vehicles will hold onto the value for a longer period of time than gas cars.

Sources

https://www.truecar.com/used-cars-for-sale/listings/fuel-electric/

https://www.factretriever.com/electric-car-facts

Was this article helpful? Like Dislike
Great!

Click to share...

Did you find wrong information or was something missing?
We would love to hear your thoughts! (PS: We read ALL feedback)