It’s no secret that you can find some bargains in the used electric vehicle market. With depreciation typically steep and customers wary of short battery life, it’s not uncommon to find surprisingly cheap, low-mileage electric vehicles that were built just a few years ago. According to EdmundsHowever, now is a particularly good time to buy a used electric vehicle, as the value of this vehicle has dropped significantly compared to last year.
Used car prices in general are down 6.8% since the second quarter of 2023, so now is a great time to buy a used car of any powertrain. But used electric vehicles? They’re down a whopping 20.5% since the second quarter of 2023, and an even more shocking 38.5% since the second quarter of 2022. Now is the best time in years to buy a used electric vehicle, and that doesn’t even take into account the additional savings from tax credits on qualifying models.
While used electric vehicles are still more expensive on average than used internal combustion engine cars, that’s only because the price of new electric vehicles is generally higher. However, the gap between both types of used cars is narrowing. In the second quarter of 2024, the average transaction price for a used internal combustion engine car was $27,391, while the average price for a used electric vehicle was $33,787. Jump back just a year to the second quarter of 2023, and those average prices rise to $29,382 and $42,482, respectively.
To make the offer even more attractive, used electric vehicles are significantly newer and have, on average, fewer miles on the clock than used combustion engine vehicles. The average used combustion engine vehicle was 4.5 years old and had 52,478 miles on the clock in the second quarter of 2024, while the average used electric vehicle was 2.7 years old and had 29,430 miles on the clock.
All of this, however, leads me to one conclusion: now is the time to buy a BMW i3. Ever since BMW announced it was ending production of its futuristic-looking car, I knew my time would come eventually. Sure, the i3 was a disappointment as a new car due to its high price and limited range, but as a cheap used car, it’s great. For under $12,000, you get a low-mileage, all-electric hatchback with rear-wheel drive, a carbon fiber chassis, and a spacious interior. The depreciation of used electric cars can’t be exaggerated enough, in my opinion.
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