Used EVs Offer Big Savings: Study Finds

A recent study by University of Michigan scientists indicates that used electric vehicles (EVs) provide the most significant lifetime cost savings for consumers. Compared to a three-year-old EV and a new internal combustion engine mid-sized SUV, the used EV offers an estimated £9,486 ($13,000) in lifetime savings. This advantage stems from the rapid depreciation of EVs due to swift technological advancements, making older models considerably cheaper for second owners.

The research analyzed over 260,000 used car listings on Craigslist, considering purchase price, depreciation, and recurring costs like fueling and maintenance. Findings suggest that used EVs, aged between three and ten years, are consistently the most economical choice across various vehicle types, including sedans, SUVs, and pickup trucks. These savings are amplified when charging occurs at home, though higher electricity costs in cities like Boston and San Francisco can reduce the advantage.

While used EVs present strong value, researchers note that battery capacity and range may not match new vehicles, impacting suitability for long-distance travel. External experts also point to factors like potentially higher insurance premiums and some repair costs as considerations. Nevertheless, the study highlights a significant financial benefit for consumers willing to explore the pre-owned EV market, especially as competition from global manufacturers further influences pricing.