Used electric cars: Rising stars in the pre‑owned market

Statistics are clear: Used electric vehicles are on the rise in popularity. Data from the American platform Carvana show that the prices of used electric cars are increasingly comparable to those of gasoline cars. Moreover, customers are opting for them more frequently.

Analysts in the USA have provided up-to-date data on the market for used electric vehicles. These analyses reveal a growing interest in these types of vehicles. So, does buying a used electric car come with concerns? And which models are currently the most sought-after in the pre-owned market?

The rising popularity of used electric cars comes as no surprise. There has been a notable increase in interest for new electric vehicles in recent years, which naturally leads to a larger presence in the secondary market.

Information from the first quarter of 2024 indicates that the listings for used electric vehicles has grown, and their prices are steadily falling. Analyzing all the ads on the Carvana website reveals that 4.3% of the vehicles sold are electric.

A year earlier, the average price of a used electric car was higher by CAD 24,000 compared to the average price of a gasoline car. By the start of 2024, this difference has shrunk to CAD 9,000. The prices of used gasoline and electric cars have significantly converged.

The Nissan Leaf emerged as the most popular electric car model in the pre-owned market during the first quarter of 2024.

The Tesla Model 3, the entry-level model from the American brand's lineup, follows closely. The Chevrolet Volt, BMW i3, and the electric version of the VW Golf, the e-Golf, fill subsequent spots.

Many buyers question the cost-effectiveness of investing in a used electric car. Although the market for such vehicles is still relatively small, potentially raising some concerns, they offer distinct advantages. Key benefits include reduced operating costs and a significantly lower purchase price than new models.

However, one must consider potentially high repair costs, including replacing parts. The issue becomes particularly acute with the battery; the vehicle loses many advantages, such as a reduced maximum range if it's heavily worn. For instance, an 11-year-old Nissan Leaf might only have a range of about 35 kilometres.

The decision largely rests on the condition and state of the specific vehicle under consideration. It's advisable to meticulously inspect key components, including the level of battery degradation. As with traditional gasoline vehicles, hiring a specialist for a modest fee can help assess the vehicle's condition, greatly enhancing the likelihood of acquiring a defect-free and fully functional car.