Prices are falling on used EVs. Here’s how to get a deal
Henrietta Burroughs was so deeply devoted to her 1991 Dodge Dynasty that she saved its floor mats to honor the car’s two decades of service.
But everything else about its replacement — a bright red 2017 all-electric Chevy Bolt, now adorned with the Dynasty’s old floor mats — is better.
“It’s reliable, it’s practical, it’s modern — and what really sold me on this car was that it was within my price range,” said Burroughs, an East Palo Alto journalist whose son and daughter also own EVs.
The high cost of electric vehicles has been the major barrier for average Californians seeking to trade in their gas guzzlers. This has slowed the widespread adoption of cleaner cars that help fight climate change and improve air quality, according to a 2023 University of Texas study..
But a price war is sweeping the EV industry, led by Tesla, causing a surge in the supply of used electric vehicles — so prices have plummeted.
Used electric cars are now as cheap as gas-powered cars and hybrids, according to an analysis by research company iSeeCars of one- to five-year-old used cars sold in February 2023 and in 2024.
“Stacked” incentives, as well as lower maintenance, help reduce the cost still further. Electricity is cheaper than gas. And income-qualified residents can drive solo in carpool lanes and get discounts at tolls.
By “stacking” incentives, a low-income family in San Mateo County, for example, could get a 2020 Chevy Bolt for free — if they qualify for the $10,000 Clean Cars For All grant, the $2,000 Peninsula Clean Energy rebate, and the $4,000 PG&E rebate.
Plummeting prices are expected to accelerate the transformation of the automobile market. On Wednesday, the Biden administration issued a regulation with tough new standards for tailpipe pollution, ensuring that more than half the new cars sold in the U.S. by 2032 are zero-emission vehicles. California already has gone much further, setting a goal of 100% zero-emission vehicles new-car sales by 2035.
When EVs were first introduced, owners tended to be enthusiastic “early adopters” who were affluent, tech-savvy and white or Asian. Vehicle inventories were low, and dealer incentives were rare.
That’s changing.
“There’s a misconception that EVs are only for the rich,” said Irvin Rivero of Acterra, a Palo Alto-based environmental nonprofit that provides free one-on-one consultations to help consumers learn about eligibility for price-lowering incentives.
“It’s really no longer an issue for lower-income individuals to find an affordable EV. The market has a lot of used models that are under $20,000,” he said. For people who qualify for several incentives, the price can fall below $10,000.
Max Perez was only 23 years old, fresh out of UC Santa Cruz, when he bought his blue 2017 Chevy Bolt. He made a down-payment using his college savings, then applied for Alameda Municipal Power’s $1,800 rebate to install a charger at his rental home.
His main motivation was to fight climate change, said Perez, who works as a consultant for a solid waste management business. “But it was a great value.”
As the spring buying season ramps up, driven by tax returns and better weather, used car prices likely will remain stable until next fall, say experts.
But price isn’t the only thing to weigh: Buying a used EV brings a special set of considerations.
For example, it’s important to know the health of the battery because batteries degrade over time and are expensive to replace. Strong batteries are worth more. But car dealerships aren’t required to test and disclose a battery’s status.
To assess the health of the battery, charge the car, see what the estimated range says, then compare it to the original rating. For a report on the estimated health of a car’s battery, enlist the help of the research firm Recurrent. Also be sure to check the manufacturer’s warranty policy: Many used cars are still be covered under a battery’s 100,000-mile warranty. (Make sure it’s transferable.)
Don’t expect a 100% battery report on a used electric car. But a lesser battery may be fine if you’re buying an EV for around-town errands — and the car will be cheaper. If you expect to take long road trips on a regular basis, a strong battery will reduce “range anxiety.”
In addition to the car, there’s the cost of an at-home EV charger that starts at about $500, and installation, which may cost an additional $1,000 to $2,000. Many electric utilities and cities provide rebates for this equipment.
And you need a place to put the charger. For residents without off-street parking, public or workplace chargers are crucial. At apartment buildings and condominiums, landlords are now required to accept a written request for installation if the tenant has a dedicated parking spot and is willing to foot the bill.
It’s tricky to navigate the many tax credit, incentive and rebate options. Each one has restrictions, and they require purchase from a participating dealership. For help, go to the state Air Resources Board’s Drive Clean website or schedule a consultation with Acterra’s e-mobility associate Rivero.
Why are used EVs so affordable? Battery prices have plummeted, falling nearly 90% between 2008 and 2022. And innovations in manufacturing and assembly continue to reduce production costs.
But this year’s sudden price drop is driven largely by Tesla. When the company slashed the cost of its new cars to attract more buyers, it also pushed down the cost of used cars. The price of a used Model X, for instance, fell by nearly $20,000 since last February, according to the consumer report Notebookcheck. The rental car company Hertz recently offered thousands of Teslas at fire sale prices.
This is forcing other automakers to also lower prices and offer promotions. The average price of a used Chevy Bolt has fallen 30%, or $7,847, over the past year, to $17,981. The average used Nissan Leaf dropped $7,329, to $17,895.
Meanwhile, inventory at dealerships is high because three- and four-year leases are expiring, said Acterra’s Rivera. “We’re seeing a lot of 2021 models pop up on the market right now,” he said.
“It’s hard to let go” of a beloved old car, said Burroughs. “But I hated to go to the gas station. Now I just plug my car in, right here at home.”
“And I’m saving money,” she said. “I just absolutely love it.”
To learn more, join Acterra’s “EV Charging Basics Workshop,” via Zoom, on March 27 at 7 p.m.
Register here: https://acterra.org/events/ev-charging-basics/