The Pros and Cons of Buying a Used EV

Whether shopping for sneakers or speakers, most Canadians are smart consumers. They review a product's pros and cons to understand the value proposition and identify potential drawbacks. It helps them avoid costly mistakes and ensures they are satisfied with their purchase. Shopping for a used electric vehicle (EV) should be no different. 

While EVs seem relatively new, the used electric vehicle market is growing. But since many people already have questions and misconceptions about buying new EVs, buying a secondhand one might raise even more questions with people who are unfamiliar. Used EVs require slightly different considerations from traditional gas-powered vehicles, but here’s a breakdown of the pros and cons of buying a secondhand electric car.

THE PROS

AutoTrader research shows that price is a big reason many Canadians wouldn't consider an EV, as they're typically more expensive than their gas-powered counterparts. But a pre-owned EV could be a smart move if you are trying to save money. 

Depreciation Means Great Deals for Used EV Shoppers

A used EV can offer significant savings compared to a new model, especially when considering the unique depreciation pattern of used EVs. This potential for upfront cost savings is a key advantage that should not be overlooked, whether you are comparing against a new electric or gas vehicle.

It's important to be aware that whether a new vehicle is powered by gas or electricity, its value will drop — or depreciate — once driven off the dealer's lot. While non-luxury gas-powered used cars and SUVs lose about 40 per cent of their original value after five years of driving, used EVs tend to have a faster depreciation within the first year and nearly 49 per cent after five years. This is especially true for older models of EVs, which have shorter driving ranges due to advancements in battery technology.

Another contributing factor to the faster depreciation of EVs compared to gas cars is the government rebates on new EV purchases. These discounts, which are designed to promote the adoption of electric vehicles, also play a significant role in the lower prices of used EVs.

Lower Maintenance Costs

EVs feature fewer moving parts. This simpler design reduces the likelihood of breakdowns and ensures a secure and dependable driving experience, leading to lower maintenance and repair costs. 

Are you concerned about the long-term costs of replacing an EV's main battery? You can rest easily because a used EV that’s a few years old likely still has a lot of warranty left on it. The major battery components of EVs typically come with a warranty of at least eight years or 160,000 kilometres, providing a level of reassurance that far exceeds the usual gas vehicle drivetrain warranty of five years or 100,000 km. EV batteries are also lasting longer and degrading much more slowly than initial estimates, and it’s statistically very rare for an EV to need a full battery replacement.

Plus, many EVs are primarily used for shorter trips due to their limited driving range compared to a gas car. This means they'll have less wear and tear on the vehicle's consumable parts, like wipers, brakes, tires, and suspension. These parts, often called “consumables” because they need regular replacement, contribute significantly to vehicle maintenance costs.

If the used EV model you are considering qualifies, a certified pre-owned (CPO) vehicle could be an excellent choice, offering even greater peace of mind. These manufacturer-backed programs often include extra warranty coverage, lower interest rates for financing, and other benefits such as roadside assistance or loaner cars when your EV is in for repairs or maintenance. 

Many EVs are also compatible with over-the-air updates, meaning a used EV can still be updated with the latest software and security without going to a garage to see a mechanic.

Energy Costs

Many EV owners benefit from the convenience and lower rates of charging at home during off-peak hours. This convenience also means waking up to a fully charged vehicle. Yes, your electricity bill will reflect the additional cost of charging at home, but since electricity costs are generally lower than gas prices, the annual energy costs for driving an EV will be substantially lower than a comparable gas car.

Quieter Driving Experience

For many drivers, the first impression when getting behind the wheel of an EV and driving off is the smoother acceleration and quieter cabin compared to gas cars. There's also the thrill of quick acceleration from the instant torque that electric motors can generate. 

Carpool Lane Access

Driving an EV in some Canadian provinces not only gives you access to carpool or high-occupancy vehicle (HOV) lanes, but it can also save you money. For example, in Ontario, EVs are eligible for a green licence plate, allowing them to drive in HOV and high-occupancy toll lanes on 400-series highways and the Queen Elizabeth Way at no cost, regardless of the number of occupants.

Feel-Good Factor

Unlike gas-powered cars, EVs do not produce tailpipe emissions, contributing to a cleaner environment. If you charge your EV from a renewable energy source, such as solar, wind, hydropower, geothermal, or biomass, there's also no pollution created from that source. Even concerns that an EV is as harmful to the environment as a gas car if it uses electricity from a coal-powered plant have been proven false.

THE CONS

Buying a used EV isn't all sunshine and rainbows. Potential downsides include concerns about limited driving range in older models, the uncertainty of long-term battery health, and access to public charging for longer road trips.

Limited Driving Range

EVs' efficiency, charging speeds, and battery longevity have all seen incredible improvements over the past decade. Innovations like improved thermal management systems, super-fast 800-volt charging, and more efficient electric motors have dramatically improved the range and charging speed of the latest models. A U.S. government report said that between 2014 and 2024, the average range of EVs has more than tripled, from around 140 kilometres to over 460 kilometres.

The downside is that older EVs may have less range than newer models, which could be a concern for long trips or daily commutes. Depending on how old the used EV you buy is, it will likely have a lower driving range before needing to be plugged in than a newer model. It might be better to buy an EV that’s just a few years old, rather than an earlier example with older technology. 

Battery Health and Longevity

An electric car's batteries naturally degrade over time, reducing range and overall capacity. Temperature, charging habits, and the number of charge cycles influence this degradation. However, the latest EV batteries show just 5 to 8 per cent degradation in the first 160,000 kilometres driven compared to 15 to 25 per cent in early EVs, with many vehicles retaining 90 per cent of their original capacity after 190,000 kilometres.

Most batteries will work for the typical lifespan of the vehicle, supported by manufacturers offering warranties of at least eight years or 160,000 kilometres that far exceed the usual gas vehicle drivetrain warranty of five years or 100,000 km. An EV's battery must retain at least 70 to 75 per cent (depending on the manufacturer) of its capacity during the warranty period. If the capacity drops below that threshold, the battery will be replaced for free. And since battery capacity has increased dramatically in modern EVs, more capacity loss can occur before a full replacement is needed. Research shows that for EVs made in 2016 onwards, less than one percent of those studied reported full battery replacements, highlighting the reliability of EV batteries.

Outdated Technology

In the automotive industry, the term "trickle-down tech" refers to the advanced features and technologies developed for luxury flagship models that eventually become available in less expensive models. This also happens with EVs, as the cost of implementing the latest batteries and tech decreases and manufacturing processes become more efficient. 

If you buy an older used electric car and plan on keeping it for many years, you may have to live without some of the features and technology found in newer models, such as advanced driver-assistance systems or over-the-air updates. 

Charging Infrastructure

One of the most empowering aspects of EV ownership is the convenience of home charging. No more trips to the gas station, just the freedom to charge your vehicle in the comfort of your home, usually while you sleep. However, for longer road trips, the potential for range anxiety still exists. 

According to Natural Resources Canada, in the past 12 months, Canada has seen significant growth in its public charging infrastructure. With at least 6,500 new public charging ports at over 1,500 new stations coast-to-coast, the country now boasts over 33,000 public charging ports. This expansion is a promising sign for the future of EVs in Canada, even if the infrastructure outside urban centres is not as extensive as gas stations, which could be a concern for some used EV drivers.