In the first quarter of 2024, sales of electric vehicles (EVs) grew by 25% compared to the previous year. In fact, it is projected that by 2035, EV sales in the US could account for almost one-fifth of car sales. Governments across the world are encouraging their citizens to adopt EVs for their environmental benefits and are rapidly improving their EV charging station infrastructure. This has also prompted consumers to look into buying a used EV to save on the costs of a new car, but this requires the buyer to do their research before purchasing as used electric vehicles have different features and lifespans compared to their gas-powered counterparts.
We’ll cover how pricing shifts, resale value, consumer demand and market trends prompted by the EV boom is changing the used car market.
The Growing Popularity of Electric Vehicles
There has been a rise in EV adoption worldwide for a number of reasons:
- Environmental concerns: Climate change and air pollution are fast impacting consumers’ buying choices. EVs produce zero emissions during operation and can greatly reduce your carbon footprint.
- Fuel savings: As fuel prices rise, EVs are an attractive option, especially as they are also generally cheaper to operate than gas-fuelled cars. EVs can also be charged using renewable energy sources, increasing their attractiveness.
- Government incentives: Administrations worldwide now offer financial incentives like tax credits and grants to encourage their citizens to buy EVs and make them more affordable. This is having an impact on automakers, incentivizing them to develop EVs.
Meanwhile, the EU implemented the Alternative Fuels Infrastructure Regulation (AFIR) in April 2024, to ensure there is adequate recharging infrastructure across the EU. In the UK meanwhile, motorists who drive vehicles that do not meet minimum emission standards now have to pay to drive their cars in ultra-low emission zones. The UK is also banning the sale of new internal combustion engines from 2030. China meanwhile, has also implemented emission standards to reduce transportation-related carbon emissions, with the latest phase of this standard being implemented in December 2023.
Moreover, major car manufacturers are also embracing EVs. While Tesla was leading the way initially, historic companies like Volkswagen, BMW and Nissan are now embracing EV development. As a case in point, Volkswagen plans to launch 70 new EVs by 2028, with the ambition that four out of every 10 cars sold by 2030 will be electric.
How EV Growth is Impacting the Used Car Market
Increasing Supply of Used Electric Vehicles
As EV production grows, so is the demand for used EVs, especially for budget-conscious drivers. It is expected that as over a quarter of a million EV leases are set to expire in the US by the end of 2026, an influx of off-lease EVs could enter the used car market. This is because new EVs are becoming more affordable as manufacturers like Hyundai and Kia expand their EV range, prompting older EV models to become more available on the used car market. A further spike in the used EV market may also take place in 2028, as many who lease new EVs in the near future may choose to end their leases then.
Pricing Trends for Used EVs
When looking to buy a used EV, it’s important to take note of the pricing in the used car market. Unlike gas-powered cars, EVs have tended to depreciate faster in the used car market. This has been prompted by concerns over longevity and battery life. However, over time as consumers have become more familiar with EVs, and as battery technology is continuously improving, the EV depreciation rate has begun to slow down.
It is also worth considering other factors affecting EV resale value:
- Battery health: The health of the EV’s battery will have a significant impact on the EV’s resale value. Many manufacturers now offer warranties on their batteries of around 8 years. If the used EV battery is still under warranty it can have a higher resale value. Good battery health is essential as replacing an EV battery can be very expensive.
- Range: This is how far an EV can travel on a single charge. An EV with a longer range will have a higher resale value as it requires less charging.
- Model popularity: Popular EV models from trusted brands hold their value better. In addition, models with advanced features can also fetch higher prices.
Encouragingly, lower-priced used EVs are making electric vehicles more accessible to budget-conscious buyers. By the end of 2024, used EV sales in the US showed an increase of 62.6% on the numbers achieved in 2023. The current used EV inventory even includes 2023 models, comprising one-quarter of the current used EV market.
Demand for Used EVs is Rising
Unsurprisingly, the demand for used EVs is rising for a number of reasons:
- Growing awareness of EV benefits: Used EVs offer both environmental benefits and fuel savings. In addition, the maintenance costs are lower than gas-powered vehicles.
- Increase in public charging stations: The charging infrastructure for EVs is expanding worldwide, making EV ownership easier.
- Gas price fluctuations: Consumers tend to switch to EVs when gas prices rise as EVs save on fuel costs and offer more financial stability.
Challenges of Buying a Used EV
Battery Degradation and Longevity
Battery degradation is the loss of an EV battery’s ability to hold charge. This happens naturally over time and can affect an EV’s range and performance. Factors like temperature and charging habits can have an impact on an EV battery’s longevity.
As well as decreasing driving range, a degrading EV battery can also impact power, acceleration and charging times. It is therefore important to check battery health reports before purchasing a used EV.
Charging Infrastructure Considerations
When buying a used EV, it’s important to consider how you are going to charge it. EVs can be charged at home or at public charging stations. That said, fully charging an EV can take half an hour, whereas filling a gas car takes minutes, and that’s if there is a charger available.
If charging at home, you will need to have access to a 240V outlet and a dedicated parking space. There are also expenses associated with installing the charging ports at home. However, this may not be available if you live in an apartment.
For those who cannot charge their EV at home, public charging stations can be used. That said, in rural areas, public charging stations can be hard to come by. They can also be difficult to access or out of service. Different charging networks have their own apps and payment systems too, which can be inconvenient for EV owners.
However attractive the prospect of buying a used EV, regional infrastructure has a significant impact on the viability of purchasing one. Currently, motorists have 145,000 places to fuel with gas in the US, whereas as of February 2025, there are only 70,424 charging locations, some of which will only have one or two charging ports.
Moreover, there are three primary charging levels available (Level 1, Level 2 and DC fast charging) and their availability can vary depending on charging stations. These different charging levels determine the time required to fully charge an EV which can have a big impact on how long it takes to get back on the road. Moreover, not all EVs are compatible with all types of chargers, so it is important to check before plugging in your EV.
The availability of charging stations in a certain area will dictate the practicality of owning an EV. That said, in areas where there is a strong charging infrastructure and government incentives, owning a used EV is a no-brainer.
Limited Model Availability
Despite the number of used EVs entering the resale market increasing, it has been reported that they only made up 1.9% of the used car resale market in the US in 2024. This means that the availability of buying a used EV model is significantly lower compared to traditional gasoline cars.
Certain regions also have low inventory for used EVs, this is again often due to the charging infrastructure and economic factors in that area. This can increase the price of a used EV due to its scarcity.
Should You Buy a Used EV or Stick with a Gas-Powered Car?
Ultimately, EVs are cheaper to run and a more eco-friendly option than a gas-powered car. For urban drivers, daily commuters and eco-conscious buyers who do not have to worry about range, they are a great option for the next car.
However, those living in rural areas, heavy travelers and people without home charging might be better off sticking with a gas-powered car. This is because charging an EV can be difficult, or in some cases, impossible.
In the long term, fuel-saving and at-home charging - which can cost just a few dollars - will contribute to the affordability of owning a used EV. In addition, fewer moving parts will mean less maintenance is required as opposed to that for a gas-powered car. The choice as to whether to opt for a used EV or a gas car is a personal one and there are many factors to consider.
What to Check Before Buying a Used Electric Vehicle
Vehicle History and Battery Report
As with buying any used car, it is essential to always review a vehicle history report for past accidents, recalls and ownership history. This will allow you to make an informed decision as to whether a used EV is a good option or not.
Moreover, as EV batteries are essential to how well they run, it is advisable to request a battery health report to check for degradation and the EV’s remaining lifespan.
Warranty and Incentives
While it is natural to have concerns over a used EV’s battery life, many manufacturers offer warranties on batteries that typically cover 150,000 miles or 8 years. The ability to replace or repair a battery that degrades significantly during this warranty period should give you peace of mind.
It is also important to check if the used EV qualifies for state or federal incentives. The 2022 Inflation Reduction Act (IRA) introduced a federal tax credit for used EVs allowing consumers to claim either $4,000 or 30% of the EV price (the lower of the two) for a used EV that meets certain conditions.
At the state level there are various rebates, tax credits and incentives available for used EVs. There are even some state-specific programs for low-income buyers and programs to assist with the installation of home charging stations.
Maintenance and Repair Costs
EVs have fewer moving parts, meaning maintenance and repair costs can be lower. As there is no engine, routine maintenance like oil changes are not necessary. That said, should you need to replace a battery, this can be very expensive and sometimes up to $20,000. That said, if a warranty is in place, you shouldn’t have to worry about this for a few years.
You may need to replace tires more often too, as a result of regenerative braking and the impact of the EV’s heavy battery. That said, regenerative brakes can also improve battery range by redirecting brake energy back to the car’s electric system. It is also worth noting that for older EV models, it can be difficult to replace certain parts because of low availability.
Before purchasing a used EV, it’s a good idea to check that local mechanics in your area are equipped to handle EV maintenance. EV’s have different needs to traditional gas-fuelled cars meaning not all mechanics will be experienced in taking care of them.
It is undeniable that the EV boom is changing the used car market. As government incentives continue to rise and charging infrastructure improves, a used EV will soon be the standard choice for purchasing a used vehicle. Battery warranties and used EV resale value are also contributing to the uptake of used EVs.
When making the decision to buy a used EV, it is important to consider your personal needs, including the long-term benefits of an electric vs a gas car, your charging needs, and the EV’s resale value. Ultimately, before you settle on a used EV, it is essential to do thorough research before making a final decision.