New electric vehicles cost thousands more than similar models that run on gasoline. But a growing number of shoppers are discovering that for used cars, often the opposite is true.
Used battery-powered vehicles often sell for less than comparable cars with internal combustion engines, making them a good deal even before calculating savings in maintenance costs and fuel. That is expanding the number of people who can afford to buy such models.
Sales of used electric vehicles rose 40 percent in July from a year earlier, according to Cox Automotive, a research firm.
K. Boyle, an 80-year-old widow who lives in San Francisco, recently bought a used Nissan Leaf she found on Craigslist for just $1,000 after factoring in a rebate from her electric utility.
The model, from 2013, is not designed for long trips, but its battery still has enough range to cover Ms. Boyle’s grocery shopping and visits to her daughter across town, she said.
“I was nervous at first,” said Ms. Boyle, a retired junior high school teacher who likened the car’s instant acceleration to something you might drive at Disneyland. “You just press it, and it goes.”
But now, she said, “I love this little car.”
Electric vehicles have lost value quickly partly because rapidly advancing battery technology has made older models less attractive. A few years ago, most electric vehicles couldn’t travel more than 200 miles on a charge. Now cars that can go 300 miles are common, and within a few years 400 miles will be the norm.
Prices of new electric models have also come down, with many selling for less than $40,000. That automatically pushes down prices of pre-owned cars.
Used electric vehicles still make up just a sliver of the used-car market — about 2 percent in July, according to Cox. Until a few years ago there weren’t many new electric vehicles to choose from, and very few were available used.
But many people who bought new Teslas, Chevrolets and Nissans three or four years ago are ready to trade them in for newer models. Or their leases are expiring. And many of the cars are new enough that they still have years of warranty coverage left, reducing consumer concerns about how long the batteries will last.
Many people are also rushing to take advantage of a $4,000 tax credit that can be applied to used electric vehicles that sell for $25,000 or less. The credit, part of Biden-era measures to fight climate change, will expire at the end of September under a law signed by President Trump.
More than 800 people responded to a request by The New York Times to tell us about their used electric vehicle experiences. Here are a few.
Todd Albert
-
The purchase: 2022 Audi e-tron GT
-
What he paid: $42,000
-
What a new model costs: $100,000 and up
Mr. Albert, an executive at a technology company in Florida, bought his 2022 Audi e-tron GT with 18,000 miles on the odometer last month for $42,000. The luxury sports sedan sells for well over $100,000 new.
The Audi, which shares many parts with the Porsche Taycan, had a reputation for being fun to drive but losing value quickly.
“The biggest drawback to both the GT and Taycan, from my research, is the rapid depreciation,” Mr. Albert said. “If you buy it used, that’s the best thing about it.”
Mr. Albert loves the Audi so much, he said, that he sometimes sits on the balcony of his home in Delray Beach gazing at it parked below. “The best word I can use is ‘obsessed,’” he said. “I fall asleep at night thinking about it.”
Amy Holtshouse
-
The purchase: 2024 Kia EV6
-
What she paid: $35,000
-
What a new model costs: $55,000
“I am a fervent believer that climate change is a real problem. It’s being caused by humans and it was time for me to do what I could to be part of the solution and not part of the problem,” said Ms. Holtshouse, a Cleveland resident who works in conservation. Her 2024 Kia EV6 had 13,000 miles on it.
Cathy Velasquez Eberhart
-
The purchase: 2017 Chevrolet Bolt
-
What she paid: $14,000
-
What a new model costs: $37,500
Many people have found that being green also makes a lot of financial sense. Ms. Velasquez Eberhart uses her 2017 Chevrolet Bolt, which she bought in 2023 for $14,000 after applying the tax credit, to make deliveries for her small business in St. Paul, Minn., Velasquez Family Coffee, which sells roasted coffee grown by her in-laws in Honduras.
“We haven’t spent any money on gas for two years,” said Ms. Velasquez Eberhart, who figures the electricity to recharge the Bolt’s battery costs about half as much as gasoline. The only maintenance has been $100 to fix a rattle in the steering wheel.
Patrick Flynn
-
The purchase: 2022 Nissan Leaf
-
What he paid: $28,000
-
What it costs new: $37,400
After Mr. Flynn’s Ford F-150 pickup was totaled in an accident, he used the $7,200 in insurance money to make a down payment on a used 2022 Nissan Leaf. He financed the rest of the $28,000 purchase price. Now the fuel savings are enough to cover his monthly payments, he said.
Mr. Flynn, who lives in a Minneapolis suburb and works in information technology at a local college, said he had some doubts about replacing his pickup for the much smaller Leaf. But those doubts were soon dispelled. “I didn’t hate it,” he said. “I loved it. It’s much easier to drive than my pickup was.”
The used car market hints at how the broader car market may change once new electric vehicles cost the same as or less than vehicles that run on fossil fuels. Experts expect mass market electric vehicles to reach price parity with conventional cars by the end of this decade. At that point, buying decisions will be based on what cars best meet people’s needs.
“The early adopters were people who cared about the environment,” said Pavel Zhuravlev, who sells used cars at PZ Global Auto, a dealership he owns in Spring Lake Park, Minn. “Now it’s people who just want a car that’s reliable.”
Affordable electric vehicles may even account for slower growth in new electric vehicles, said Tom Narayan, an analyst at RBC Capital Markets who follows the auto industry. Data compiled by his team suggests used electric vehicles are siphoning buyers away from new cars.
“The No. 1 thing we see time and time again is that the biggest factor is price,” Mr. Narayan said. “It’s not range anxiety or culture wars, it’s price.”
Some of the best deals are on Teslas, which account for a big chunk of the used inventory because the company has been selling electric cars in the United States longer than any other manufacturer.
As leases on Teslas end, many drivers are switching to rival brands — like General Motors, Ford or Hyundai — creating a glut of used Teslas. Many have made the switch because they are offended by the behavior of Elon Musk, the Tesla chief executive, who has embraced right-wing causes.
Martin Fleischmann, a business consultant who lives in Atlanta, doesn’t like Mr. Musk. But when he saw a 2019 Tesla Model 3 sedan for a little more than $14,000 after applying the tax credit, the deal was too good to pass up. “I didn’t see it as a political statement in any way,” Mr. Fleischmann said. “It was just a great E.V. at a fantastic price.”
An avid runner, Mr. Fleischmann has covered the Tesla logo on the car’s hood with a Boston Marathon sticker.
Jack Ewing covers the auto industry for The Times, with an emphasis on electric vehicles.
The post Used E.V. Sales Take Off as Prices Plummet appeared first on New York Times.
