The federal tax credit for new and used electric vehicles (EVs) will end on September 30th, 2025. Aware of this deadline, buyers nationwide who are looking to purchase or lease an EV have been rushing to take advantage of the soon-to-expire tax credits along with many special discounts offered by car dealers. Don’t feel too bad about missing out on these tax credits because there are currently great deals on used EVs and excellent reasons to buy them. These include the abundance of new EVs coming off leases, the relatively rapid depreciation of new EVs, and the low cost of ownership of EVs.

 

Many makes and models of relatively new electric vehicles are already on the used market at excellent prices and offer years of efficient driving, cost savings for “fuel,” and minimal maintenance. In fact, currently, sales of used EVs are at an all time high. Although innovations in technology (such as driving range, charging speeds, and safety features) are being introduced much more rapidly in EVs than in gas-powered cars, many of these are incremental improvements. Accordingly, most used EVs within a few years of initial sale have excellent features.

 

High Supply of EVs Coming off Leases

One reason for great deals on used EVs is that in the past few years most EVs were leased because of greater availability of federal tax credits (with leasing) and a desire on the part of drivers for easy access to rapidly improving technology. There are thus a high number of lightly used EVs coming off recent leases. This surge in supply naturally results in lower prices.

 

Rapid Depreciation of New EVs

Another reason for great deals on used EVs is the relatively rapid depreciation of new EVs. This depreciation is because of unwarranted concern about degradation of battery performance. In fact, EV battery packs generally have a 10-year warranty but retain 80 percent of range over this period and rarely need replacement. Another concern that contributes to depreciation is the perception that slightly older EVs may be outdated relative to new models that feature the latest innovations. Most of the depreciation of new EVs occurs in the first few years after purchase. Take advantage of this depreciation by getting a great deal on a recent model of EV just coming off lease.

 

Cost Savings of EVs

Yet another reason that used EVs are a great deal is that all EVs save money. When conveniently charged at home, electric vehicles have very low “fuel cost” (equivalent in price to gasoline at $1.41 per gallon), according to the U.S. Department of Energy. In addition, in Connecticut electric utilities provide rebates of up to $1000 for purchase and installation of home charging equipment. Last, according to Consumer Reports, upkeep and repair costs for EVs are only half of those for gas-powered cars. 

 

Online Sources for Purchasing Used EVs

Multiple resources for purchasing used EVs are available. You could start by researching your local auto dealers’ websites or online resources such as Carvana, ev.com, and myecoauto.com, using their search engines to identify a preferred make, model, year and mileage.

 

To learn about newer EV models, you can meet EV owners and local auto dealers at this year’s National Drive Electric Month (NDEM) events (12 September to 12 October) and take a test drive to learn first hand the many advantages of owning an EV. To find an NDEM event near your, enter you zip code on the NDEM home page.

 

Beva Nall-Langdon is a member of the Sierra Club and has been a co-organizer of many EV showcases through National Drive Electric Month.