A Guide To Buying and Insuring a Used EV

Let’s face it, electric vehicles (EVs) are expensive. Even people who can afford to buy a new one often end up buying a used EV because car depreciation on a brand-new car is very high. The average new electrical vehicle costs about $48,000.⁽⁶⁾ It will lose more than 10% of its value as soon as you leave the dealership, more than a gas-powered vehicle. The average used electric vehicle in 2024 cost about $27,000, according to iSeeCars.com.

Buying a used electric vehicle (EV) is more cost effective, and the only difference between buying a used gas or electric car is the amount of attention you should pay to an EV battery, which can be costly to replace. Also, the myth about EVs costing more to insure may not apply for your used EV.

Here’s everything you need to know in detail before shopping for a used EV. Also, check out our tips at the end on how to find an affordable car insurance policy to go with your new used car.

10 Things To Do When Buying a Used EV

1. Ask to take the EV for a battery test.
2. Ask if the car has the original battery or a replacement.
3. Check for accidents using the car’s vehicle identification number (VIN).
4. Ask if the car is still on warranty and verify when coverage ends and what it covers.
5. Ask how often and to what level the owner was charging the car. The less the better but not less than 25%.
6. Look into that particular make and model’s EV battery lifespan.
7. Find out how fast it charges.
8. Look at the resale value of similar vehicles on Kelley Blue Book or Edmunds.
9. Be clear on the battery range.
10. Have an experienced EV technician do a thorough inspection of the vehicle.

EV Battery Life and Cost of Replacement

Everyone wonders if buying a used EV is a good idea because they may have heard EV battery horror stories and feel uneasy because electric vehicle batteries are not cheap to replace. However, they have become cheaper to replace now that manufacturers have begun recycling dead batteries to mine their natural elements, which are expensive to buy new.

With all that said, a new EV battery on a used car can cost $7,000 to $30,000 so do some research on the battery of the car you’re looking to buy. Be clear on all possible future expenses.⁽¹⁾

A new battery will live 15 to 20 years but the following are eight steps that lengthen the lifespan of an EV battery. If buying from a private seller find out if they took these steps:

1. Park in the Shade When it’s Hot Outside
2. Park in Full Light When it’s Cold Outside
3. Only Charge a Battery Until 25 to 85% Charged
4. Avoid Fast Charging
5. Store an unused EV at 25 to 75% Charge Using a Timed Charger
6. Avoid Frequent Charging
7. Follow Owner’s Manual for Battery Checkup Frequency
8. Don’t Speed

How To Buy a Used EV

EVs are a little different to shop for because they have lower maintenance costs (no oil changes!) and a huge portion of the car’s value rests in the health and lifespan of the battery. Each EV’s battery has a different number of years before it needs to be replaced.

Also, how the car was maintained and the climate it’s been driving or stored in will also dictate how many years the battery has left. A warranty on a used EV can also determine whether or not you’d qualify for a free battery replacement.

It’s important to review a warranty in full before making assumptions on what it will and will not cover.

Take the following steps before purchasing a used EV⁽⁵⁾:

• Get a detailed report on the vehicle’s battery from a dealership or charge the battery to 100% to see what the car offers as a range and if that realistically fits your lifestyle and driving habits.
• Determine if the EV battery has been replaced, which would increase the life expectancy of the battery. Carfax or AutoCheck vehicle history reports can tell you if the dealer is not sure.
• Make sure all paperwork the seller is showing you regarding the EV is specific to that EV (including and especially the battery).
• Find out how long it takes to charge up to 80%. You never want to charge to 100% because it eats away at the battery’s life. Perhaps stick around to see how long it takes to get to that target charge if the battery is running low. Or, a little online research should bring up other owners sharing charging times of the same make and model.
• Make an offer for the vehicle based on the EVs battery health and range. Pre-calculate your daily range maximum to see if the car fits your needs.
• Also consider the warranty and see if it's transferable. The manufacturer’s customer service department is the best way to verify that and when the warranty expires. You can call them using the vehicle identification number (VIN). If possible, go over the warranty terms, especially as they relate to the battery.
• Ask for maintenance records. Aside from the tires, brakes and windshield wipers, car owners should be getting an EV battery check at least once a year but many people do not. If there is a record of these checks it’s a bonus.
• Ask for charging accessories and the charger. Not all used EVs will come with these, and they can be pretty pricey so you may want to consider that in the price, and use it as a bargaining chip, even if you live in an apartment or condo, which means having to visit a charging station anyway.
• Make sure the dealer gives you a paper copy of a time-of-sale report when you complete your purchase.⁽³⁾
• Check out the tires to see if they need replacing. The good news is that brakes and tires tend to wear slower on EVs, which come to a smoother, slower stop than gas powered vehicles.

Savings in Buying a Used EV

1. Say Bye to Gasoline. With an EV, you are no longer slave to the turbulent market prices for gas. Charging costs vary by location, if you need to use a charging station, but you will save hundreds of dollars each month in gas costs if you drive regularly.
2. No More High Maintenance Required. There are no oil and filter changes that are costly and time-consuming. Also, electric vehicles are known to have fewer mechanical problems due to fewer parts. In fact, your battery check is the only regular maintenance task you’ll have and, depending on the vehicle, that may only be once or twice a year.
3. Rebates and Tax Incentives
4. Car Insurance Discount

Discontinued Cars Insights: What if You Buy a Used Bolt EV?

In 2023, Chevrolet decided to discontinue its best-selling electric vehicle, the Chevy Bolt and focus instead on its electric trucks. Since then, car shoppers have been offered incredible prices on used Bolts but many worry about warranties and necessary repairs and how that is affected by discontinuation.

Since cars are not an investment property, in that they depreciate over time, losing much of their value when purchased new, it’s not a problem to buy an EV that has lost value and is now more affordable. Existing warranties will still apply, and because there were millions of Bolts sold in prior years combined, finding parts will probably not be an issue for many years to come.

Still, you’ll want to find a deal on a minimally-used EV that's only two or three years old. A Chevy Bolt has an EPA-estimated 259 miles of range. It also earned top safety ratings from NHTSA and IIHS.

The revised 2024 federal EV tax credit allows up to $4,000 in rebates upon purchase if you buy a qualifying used EV under $25k. Not all dealers, however, will accept the rebate so find out which ones do when you begin shopping.⁽²⁾

For more on tax credits on various cars, see below.

Buying a Used EV: Tax Credits Apply

Electric vehicles (EVs) or fuel cell vehicles (FCVs) that are purchased in 2024 from a licensed dealer for $25,000 or less, may be eligible for a used clean vehicle tax credit for 30% of the purchase price but only up to $4,000. The purchase price includes optional accessories.

The rebate must be transferred and applied at the time of purchase, depending on whether or not you buy from a participating dealer. If filed as a credit on taxes, you cannot get back more on the credit than you owe in taxes and remaining credits cannot be applied to future tax returns.⁽³⁾

To qualify, you must:

• Be the person who bought the used EV for use and not for resale.
• Not be a dependent on anyone else’s tax return.
• Not have claimed this rebate in the 3 years before the purchase date.

You can use your modified adjusted gross income (AGI) for the year the car was purchased or the previous year.⁽³⁾ Choose whichever is less because your modified AGI may not exceed:

• $150,000 for married filing jointly or a surviving spouse
• $112,500 for heads of households
• $75,000 for single filers

The EV must meet all of the following requirements:

• Sale price must be $25,000 or less and includes accessories. Sale price also includes all costs or fees not required by law. It doesn't include taxes or title and registration fees.
• The model year of the EV must be at least two years earlier than the calendar year when purchased. A vehicle you bought in 2024 would need a model year of 2022 or older.
• The EV cannot have been transferred after August 16, 2023 to a qualified buyer.
• The vehicle weight rating must be less than 14,000 pounds.
• The EV must have a battery capacity of least seven kilowatt hours.
• The car must primarily be driven in the U.S.
• The electric car, SUV or truck must be purchased from a dealer.

Insuring a Used EV for the Best Value

In many cases, insuring an EV costs more than a gas-powered car because of a higher value of the car, so insuring a used vehicle may be more cost effective due to depreciation. For most car owners, insuring a used EV costs much less than buying car insurance for a new EV. How much less depends on the resale value of that EV.

You’ll also get a discount on car insurance for having a clean vehicle over a gas-powered one. As for other factors used to rate car insurance, each one weighs differently for each insurer. For instance, credit scores are only used to derive an insurance score in some states but not all. Your driving history will also be factored in and so will the garaging address of the vehicle and your age.

If the EV you buy is valued at a price more than $4,000, you’ll want full coverage, even if you buy the car outright and are not financing it. You will not be fully covered with liability-only coverage if you cause an accident. You’ll have to pay for repairs and a possible battery replacement for your car on your own without collision coverage. If you have a non-collision related loss, like the theft of the car, you will be fresh out of luck without comprehensive coverage.

If you want to save money, look at all the discounts available, but only after you compare car insurance rates online, to see who is offering your specific driver profile the lowest rate. Tack on the discounts for bundling, for insuring a green car and all sorts of other discounts that particular insurer has to offer. Bundling home and auto or renters and auto will lower premiums all around too, in many cases, and makes paying insurance bills more convenient.

If you have more than one vehicle and bring that over to your new insurer, you’ll qualify for a multi-car discount, again making bills much easier and more affordable.

Understand how much coverage you need to buy. State minimum requirements are rarely enough to pay for damages to most new vehicles, which cost over 40K on average. Bump up liability minimums always to cover something at a higher total loss value, and buy enough collision and comprehensive coverages to cover the full resale value of your EV. You can find out what that is, and should do so before you buy the car, by looking at Kelley Blue Book or Edmunds.