New EVs vs Used EVs

The electric vehicle (EV) revolution is in full swing. As more drivers switch to eco-friendly transportation, the market for new and used EVs is growing. At Boucher Auto Group, we’ve witnessed a growing interest in EVs. Customers can now choose between cutting-edge new models and budget-friendly used options. But as the automotive landscape evolves, you must weigh the pros and cons of each option carefully. This guide will explore key factors to consider when deciding between a new or used EV, helping you make an informed decision that aligns with your needs, budget, and environmental values.

Cost Considerations

Several key factors come into play when evaluating the financial aspects of purchasing a new versus a used EV. Let’s explore these in detail.

Initial Purchase Price

Depending on the model and features, new EVs can range from $30,000 to over $100,000 MSRP. Premium models such as the Tesla Model S Plaid or Porsche Taycan can even exceed $100,000, while more affordable options such as the Chevrolet Bolt EV start around $27,495 for the 2023 model. Used EVs are generally 20% to 50% cheaper. For example, a 3-year-old Tesla Model 3 might cost $25,000-$30,000, compared to over $47,000 for a new one.

Depreciation Rates

According to CNBC, new EVs depreciate rapidly, losing up to 31.8% of their value in the first year. However, they generally hold their value better than gas vehicles, especially Tesla models. Used EVs have already undergone their most significant depreciation, with the curve flattening after three to four years, making them a smart financial choice. For example, a 2020 Chevrolet Bolt EV that originally cost $38,000 MSRP might be worth $25,000-$28,000 in 2024, with 30% to 35% depreciation over four years.

Incentives and Tax Credits

New EVs are eligible for a federal tax credit of up to $7,500, subject to certain conditions. Many states and local governments also offer incentives, adding thousands more in savings.

Potential Savings

The cost to run an EV is approximately $0.05 per mile versus $0.15 per mile for a gas-powered car, saving you hundreds of dollars annually, depending on your driving habits. Additionally, EVs have fewer moving parts, reducing maintenance costs. Many EV owners save $500 to $1,000 annually on maintenance compared to gas vehicles. These savings can offset the higher purchase price of a new EV or increase the value proposition of a used EV.

Insurance Costs

Insurance is an important factor in the overall cost of owning a vehicle. New EVs often have higher insurance premiums due to their value and repair costs. Used EVs typically have lower insurance costs, saving you hundreds of dollars annually. This difference can be significant for budget-conscious buyers and may tip the scales in favor of a used EV for some.

Technology and Features

New EVs feature cutting-edge advancements that enhance performance, safety, and user experience. This includes the latest battery technology, offering improved range and faster charging. For instance, a 2024 Ford Mustang Mach-E can travel up to 312 miles on a single charge, compared to 300 miles for the 2020 model.

In new models, advanced driver-assistance systems (ADAS) provide enhanced safety features, such as Ford’s BlueCruise hands-free driving mode. New EVs also offer state-of-the-art infotainment systems with over-the-air updates and seamless smartphone integration. Used EVs may have older battery technology with shorter range and slower charging. While they include basic safety features, they may lack the latest ADAS. Infotainment systems in used models are functional but might have outdated interfaces and limited smartphone integration.

Despite these differences, pre-owned EVs can still be an excellent option at a lower cost. The choice between new and used ultimately depends on your technology, range, and budget priorities.

Reliability and Maintenance

New EVs have comprehensive manufacturer warranty coverage, typically offering eight to 10 years of battery protection. This provides peace of mind and includes the latest service and dealership support. Some manufacturers even offer free maintenance programs for new vehicles.

Depending on age, used EVs may have limited or expired warranty coverage. However, you can purchase an extended warranty for extra protection. While used EVs might face higher maintenance costs as they age, they benefit from a growing network of independent EV specialists that offer affordable servicing options.

Both new and used EVs generally have lower maintenance costs than internal combustion engine vehicles, thanks to fewer moving parts and less frequent fluid changes. However, battery degradation is a concern for both.

Environmental Impact

Choosing between a new and used EV involves weighing various environmental factors. New EV production generates significant carbon emissions, mainly from battery manufacturing. However, these vehicles often feature the latest energy-efficient technologies, reducing long-term ecological impact. Used EVs bypass the emissions associated with new production but may be less energy efficient. However, they extend the life of existing vehicles and contribute to sustainability. Both options reduce emissions during operation compared to gas-powered cars. As the EV industry evolves, better battery recycling processes will enhance the sustainability of electric vehicles, whether new or used.

Why Buy a Used EV?

There are several compelling reasons to consider a used EV:

• Significant cost savings on the initial purchase.
• Reduced depreciation compared with buying new.
• Access to premium EV models at more affordable prices.
• Lower insurance rates due to the vehicle’s reduced value.
• Availability of certified pre-owned programs with additional warranties.
• Opportunity to enter the EV market with lower financial risk.

Many of our customers at Boucher Auto Group have found great value in used EVs. For example, a recent buyer, Sarah J., shared, “I was hesitant about EVs, but buying a used model allowed me to try out electric driving without breaking the bank. I’m now a convert, and I love my eco-friendly commute!”

Shop For Used EVs Today at Boucher Auto Group

Discover your ideal used EV at Boucher Auto Group. Our current inventory includes popular models from top manufacturers, all thoroughly inspected and ready for their new owners. We have something for every EV enthusiast, from popular models to hidden gems. Take advantage of our competitive financing options to switch to electric. To learn more about us or schedule a test drive, please don’t hesitate to contact our dealership.

Image by Ivan Radic | Licensed with CC BY 2.0