Since the increase in gas prices, shoppers’ interest in Electric Vehicles (EVs) has risen by almost 70%. This means that the price of EVs has also increased. But the drawback is that with the supply chain issues of semiconductors there is also a bottleneck in production to keep up with the demand. The price of new EVs increased so much due to the waiting period and this caused used EVs to also skyrocket.
Sam Abuelsamid, an industry analyst and EV specialist with Guidehouse Insights and a Forbes Wheels contributor said, “There’s not a lot of availability, so prices for the used EVs that are there are going to be higher, just as with the new-car market.”
How Inflation Affects the Price of EVs
The rise in gas prices and the inflation rate has played a role in the price increase of EVs and the high demand for used EVs. According to Forbes Wheels, used prices have inflated at a rate three times higher than the overall inflation rate which is about 8.5%. The price and availability keep changing frequently.
The Forbes Wheels article compared the 2018 Nissan Leaf SUV price in 2019 and the price as of today. It was discovered that the asking price in Southern California for a 2018 Nissan Leaf SV with less than 30,000 miles on the odometer averaged about $20,000 at the end of 2019. Today, the average for the same make, model, and mileage is about $25,000.
If you’re waiting for the price to come down before shopping for an EV, you may need to reconsider. With the data available, the prices are expected to persist for the rest of the year. If the price to get an EV is beyond your budget, consider older EV models.
Availability of EVs
With the increase in gas prices and the limited supply of new vehicles, EV owners are holding on to their vehicles instead of trading them. This has caused a scant supply of EVs in the used EV market. There aren’t many EVs out there due to the global supply shortage – and the prices of available EVs will likely cost more than a few years ago.
If you’re looking to take advantage of the used EV market, here are 10 tips to help you avoid ending up with a lemon.
Tips to consider before buying an EV
1. Available Models
When considering buying a used EV, search for models that have been available for more than two years and are still fairly new. Search for EVs such as Chevy Bolt, Nissan Leaf, or even the discontinued Kia Soul. The EV used market has a large inventory of these vehicles and the prices are lower than dealerships.
The used EV market prices are also lower than newer EV models. Some of the new EV manufacturers have introduced luxury models which have skyrocketed their prices. These prices are then taken into the used car market – causing them to cost higher, even as a secondhand vehicles. To save on cost, go for older EV models.
2. Driving Needs
When shopping for an EV, you need to consider your daily driving needs. For older models, shop for EVs that don’t have a lot of range but are used for your daily commute. If you can run errands, and various local activities, a low-range EV is just fine for you.
If your driving needs involve long-distance travels go for EVs with longer ranges. Electric-powered vehicles are 25% lower than the cost of gas on a mile per gallon, this means you are saving over a gas-powered vehicle for every mile you drive.
3. Compare Prices
Compare prices and check pricing guidelines from sites like Edmunds and Kelly Blue Book. Comparing prices online will give you a fair knowledge of what the average price of an EV should be. It will also help you make a realistic budget for your purchase. Try not to go over your average price so you don’t lose money.
4. Battery Capacity
Before purchasing a used EV, you need to determine the battery charging capacity. If you’re buying from a private seller or dealership, ask how frequently the battery charges to full capacity. The more frequently an EV charges to full capacity, the quicker it degrades. This is very common in older EV models that don’t use battery cooling systems.
5. Battery Health Check
Get a detailed battery health report before paying for the vehicle. Although battery failure is rare, it can be expensive if it happens. If you are buying from a private seller, request the services of a professional technician to have the battery checked.
Many dealerships often offer these checks, so you can have this done if you’re purchasing from a dealership. Most EV battery capacity is shown on the dashboard, you can use this to have an idea as well. If you are buying from an online auction, you can check CarFax or AutoCheck for a documented record of the battery capacity.
6. Consider Climate
Avoid buying used EVs from very hot or dry temperate areas. Buying from these areas can drain battery life. Also, the EV range can be affected by the hot temperature. So if you’re looking for an EV that will stand the test of time search in moderate temperate environments.
7. Broaden Your Search
Don’t be afraid to shop outside of your city or state, you may come across awesome deals when you broaden your scope. Search locations that have a large number of EVs available, like California which has more than 40%of all EVs.
A larger number of EVs in a location also means lower prices and a wider inventory. Also, the cost will vary from state to state – compare prices from different locations for the best deals.
8. Frequently Used EV
EVs lose power when not driven enough, when looking to buy search for EVs that have enough driving range. You can search for buyers who had the EV as a primary vehicle or a frequently used commuter vehicle. Unlike gas-powered vehicles where the lower the mileage the better, used EVs need pretty good driving time. The batteries are heather this way.
If you’re looking to buy a used EV but do not have the required amount for it, consider financing. By buying from a car auction company like Auto Auction Mall, you can receive financing for your EV. You should also look out for auto financing companies that will finance your vehicle purchase.
10. Where To Buy From
Finally, you have to consider where you will buy from – a private seller, a used car dealership, or a car auction. All three have their pros and cons. Carry out research on which is more convenient for you.
- Is Buying a Used Electric Vehicle a Good Idea?
- What You Need to Know about Buying Used Electric Vehicles
- Your 101 Guide to Choosing the Right Electric Vehicle (EV)
- Hydrogen Cars: What Are All I Need to Know About Hydrogen Fuel-Cell Cars?
Many manufacturers are diversifying to include EV production and new battery technologies. The EV market keeps growing daily and you don’t have to hesitate to get an EV. A brand new EV may have an impact on your bank balance but you can consider used EVs as an affordable option. The used EV market is also a good place to switch to an EV with lower costs than the New EV market.
If your preferred purchase destination is an online auction but you don’t know where to start we’ve got you.
Auto Auction Mall has an inventory of over 250k plus vehicles – gas-powered and EVs. Our website allows you to filter your search based on year, make, model, etc. Register for free and have access to our inventory – no license required!
We will assist you with estimates, and your budget and walk you through the entire process. We have our support team on standby to walk you through the process.
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Source: Forbes Wheels, Recurrent