Why You Should Consider Buying an Affordable Used EV
Used EV prices are coming down after an upward trend for the last two years.
By Paul Bordenkircher, President of the Las Vegas EVA Chapter
The 2023 average transaction price (ATP) in March for all new cars was $48,000, according to KBB. This ATP average includes luxury, gas, and electric vehicles. Even a new Toyota Camry will start in the neighborhood of $40,000+, and a Model 3 can be cheaper in some places in California.
However, many car buyers are searching for lower prices – sub $20,000 or $15,000 – and an affordable used electric vehicle (EV) might be the answer. The good news is used car prices have been trending downward since 2022. Cox Automotive says prices are down 4.4% from April 2022, and the company reported a 3% decline in prices in April 2023.
A Certified Pre-Owned, Affordable Used EV Vehicle
I recommend buying a certified pre-owned vehicle because it includes an extended warranty and takes the guesswork out of buying a good, reliable car. Whether the vehicle is powered by gasoline or electricity, insist on it when you're car shopping.
To give you an idea of the kind of savings you can expect, I bought a used 2016 Chevy Spark EV, which sold for about $27,000 when it was new. When I bought this car in 2019 (just three years later), it could be purchased as low as $8,000, but was typically priced between $10-12k.
Of course, the pandemic turned just about everything on its head, including car prices. Before you commit, check the latest promotions and lease deals, and refer to any changes in the IRS rules regarding rebates and state-based incentives.
Moreover, a federal tax credit of $4,000 is available for used EVs. Qualifications include that the vehicle is at least two years old, sold by a dealer, and is under $25,000.
Electric Vehicle’s Total Cost of Ownership
There’s more good news. The total cost of ownership with an EV is well below that of a gasoline-powered car. When drivers factor in the costs for maintenance and repairs, EVs are the clear winner and can save drivers thousands. That’s because there are far fewer moving parts to wear or break down.
A recent post from Tim Benford on total cost of ownership savings. (From the National EVA Facebook page)
Not only that, but electricity for powering your car is far cheaper than gasoline. Special programs with your local electric utility - often called Time of Use - may be able to save you even more.
I was thrilled with my used Chevy Spark EV, and I am now in my second, a 2018 Kia Soul EV. If you’re considering getting your first EV, consider buying a used one.
EV Charging Incentives
Aaron Choate, President of the Austin EVA chapter, produced a wonderful guide on which EVs qualify for the Federal EV Tax Credit. See the “e” symbol, which designates the availability of the $3,750 or $7,500 federal tax credit for 2023.