Used electric cars have become more affordable since a new tax credit began in January 2023. Your range and driving habits can influence the type of used EV you should buy. This article is part of the “Electric Vehicle Preparation” series of guides and practical advice for buying your next EV.
Electric car prices are falling across the board. With more models flooding the market, you can get an especially good deal on a used EV.
But for some shoppers, paying thousands of dollars for unfamiliar technology (especially one that’s been around a few times) can be daunting.
In addition to thinking about which car to buy, used EV buyers may be wondering whether the battery is likely to die. Shoppers on a budget may be looking for ways to save even more money, as the EV tax credit will expand to include used electric vehicles in January 2023.
Research requires doing many things at once. We spoke to car buying experts to unpack the process.
Consider where and how much you will drive
Scott Case, co-founder and CEO of Recurrent, a startup that tracks EV battery health, says first consider how far you typically drive and the climate you live in. I recommended starting with that. These factors will influence the required range for EVs to perform best. In warmer climates, you won’t be able to drive very far in cold temperatures.
“If you live in Florida and drive 30 to 50 miles every day, you can buy almost anything,” Case says. On the other hand, people who travel 250 miles a day and live in the occasionally frigid Midwest need to shop around for a vehicle that can travel long distances.
When researching used EVs, it is important to know the average mileage. Even with a fast charger, it may take an hour or more to charge the battery. Graham Rapier/Business Insider
Most older electric cars don’t have the range of modern products. Some models may only have an EPA-estimated range of 80 to 120 miles.
Battery operating range degrades over time
Anyone who owns a smartphone knows that lithium-ion batteries wear out over time. Much the same can be said about EVs.
Over the years, charging and driving cycles wear down an EV’s battery pack, reducing its range. Vehicle data company Geotab estimates that EV batteries tend to lose about 2% of capacity each year.
The good news is that it’s unlikely that your EV battery will completely fail or render your car useless.
However, figuring out how much life a car has left is not so easy. Case said exposure to extreme temperatures, frequent trips to powerful DC fast chargers, and changes in battery chemistry make some used cars perform better than others with the same mileage. He said he would do so.
Before purchasing a used EV, ask questions about battery care. Battery life will be shortened if the battery level is below 20% or above 80%. Nora Norton, Business Insider
Jim Fish, vice president of technology-focused collision repair company Opus IVS, says the best question to ask about battery care is whether the battery has been left at less than 20% and more than 80% of its charge. He said that it was a problem.
Fish says that if a battery is left near empty or fully charged for too long, its ability to hold a charge will be affected.
“Of course, you might have a hard time finding the truth to that question,” Fish said.
Recurrent provides reports on EV battery health with the goal of helping shoppers make car choices.
You can save up to $4,000 thanks to federal tax credits
Early last year, the Used EV Tax Credit went into effect as part of the Inflation Control Act’s larger incentive program. Auto retail analysts said this is a welcome change for consumers buying EVs on a budget.
To qualify for the credit, you must purchase your vehicle at a dealer so that the dealer can report the required information to the IRS.
The purchaser must purchase the vehicle for personal use and not for resale, must not be the original owner of the vehicle, cannot claim as a dependent, and must have previously used other clean vehicle credits. must not be 3 years. Income limits for buyers range from $75,000 to $150,000, depending on tax status.
Vehicles must have a retail price of $25,000 or less and be at least two model years old.
Many states also offer tax incentives for EV purchases. More information and required forms can be found on the IRS website.
