Discover how to assess the true worth of used electric cars now and in the future through market analysis and other important factors.
The high price of purchasing an electric vehicle (EV) can discourage some individuals from making the purchase. While early adopters are typically willing to pay extra for the technology as the EV market matures more people are seeking options, in the form of used EVs. But many say, “When buying a used EV, there’s no way of knowing exactly what shape that battery is in so buying a used electric vehicle doesn’t make any sense”. Let’s also see what other factors influence the value of used electric cars.
In this article
Do Electric Cars Have Good Resale Value?
The allure of technology tends to drive demand for brand-new EVs rather than opting for a used one. Who wants to buy an iPhone 6?
Nevertheless, concerns still exist regarding EVs, such as the premium price tag when they were first bought, range anxiety, potential decrease in range over time, and the cost and timing associated with replacing the battery and electric motors.
However, finding ways to determine the value of used EVs accurately could be instrumental in unlocking and expanding the market for these vehicles.
Through developing precise EV battery tests, both automakers and third-party companies can facilitate understanding between buyers and sellers regarding the resale value of a used EV. This could result in a more accurate used car market for EVs and make them more appealing to mainstream consumers.
Factors That Could Affect the Price of Used Electric Cars
There’s a rising number of vehicles (EVs), under lease in both the United States and a significant portion of these leases will be ending within the next few years. This could potentially increase the availability of used EVs on the market, which might lead to a decrease in prices.
In 2022 the United States had more than 400,000 EVs leased. It is projected to surpass 1 million by 2025.
When these leases come to an end owners will have choices. They can buy the car outright, return it to the leasing company, or opt for a new lease. If a significant number of owners decide to return their cars to the leasing company there could be an influx of used EVs for sale.
This increased supply may drive down prices for owned EVs; however, other factors could help sustain prices such as increasing demand for EVs and limited availability of new ones.
Overall it is challenging to determine with certainty whether the conclusion of EV leases will result in prices falling for used EVs. However, it’s important to consider that this factor is expected to have some influence, on the market in the coming years. Finding cheap electric cars for sale could be sooner than we think.
Other Key Factors That Might Impact the Prices of Owned Electric Vehicles (EVs)
- Government incentives: Many countries provide incentives like tax breaks and rebates to encourage individuals to purchase EVs. These incentives can make new EVs more affordable potentially putting pressure on the prices of used EVs.
- Battery technology: The cost of battery technology has been decreasing rapidly in times making EV production more economical. This ongoing decline in costs could further contribute to the reduction of used EV prices.
- Charging infrastructure: The availability and accessibility of charging stations play a role in determining the demand for EVs. As more charging stations are established, owning an EV becomes easier and more convenient. This increased convenience might lead to higher prices for owned EVs.
Overall several factors including lease expirations for EVs, government incentives, battery technology advancements, and improvements in charging infrastructure are likely to impact the pricing dynamics of used vehicles.
Determining the Value of Your Used EV
To evaluate what your used EV is worth, here are some steps you can take:
- Check sources like Kelley Blue Book (KBB) or Edmunds for information on used EV prices, in your area. To determine the value of your used vehicle (EV) I recommend checking sales prices for similar EVs on platforms, like Gov auctions.org (Government Car Auctions).
- Having a qualified mechanic inspect your EV to assess its condition and battery health would be beneficial.
- Conducting a free VIN check is essential to ensure that there are no accidents and get a vehicle history report to see if there are outstanding liens on the vehicle.
Once you understand the value of your used EV you can explore options for selling it. These options include selling it to a buyer, trading it in at a dealership, or reaching out to specialized third-party companies that deal specifically with used EVs.
In conclusion, although the used EV market is still in its stages of development it is rapidly expanding. As battery testing technology improves and prices continue to decrease used EVs will become increasingly appealing to mainstream consumers.
If you are contemplating selling your used EV, maybe now is a good time to do so, before the EV lease expiration tsunami affects prices.