The used electric vehicle market has reached a turning point. After years of high prices, used EVs have achieved near price parity with gasoline vehicles, making them more accessible than ever.
In August 2025, the price premium for used EVs compared to gas vehicles narrowed to just $897 on average—the smallest gap on record. Better yet, many makes now have lower average EV prices than their gas-powered counterparts.
Recent market data shows exciting trends for buyers. The average price of a used EV was $31,110 in May 2025, down $2,993 (8.8%) year-over-year, while top-selling models like the Tesla Model 3 ($23,278), Nissan LEAF ($12,890), and Chevy Bolt ($14,705) are priced well below market average. If you’ve been considering an EV, now is an excellent time to explore the used market.
1. Understand Used EV Tax Credits
The federal EV tax credits expired on September 30, 2025, following the passage of Republican tax legislation signed by President Trump. Previously, the EV tax credit provided up to $4,000 (30% of the purchase price, capped at $4,000) for qualifying vehicles.
However, state and local incentives may still be available in your area. Check the Database of State Incentives for Renewable Energy (DSIRE) for current state-specific programs, and investigate local utility rebates that may help offset purchase costs.
Consult a tax professional to determine current eligibility and available incentives.
2. Assess Your Range Needs Realistically
Your actual range requirements depend on your daily driving patterns and access to charging. The average American drives about 40 miles per day, according to the Bureau of Transportation Statistics. If you primarily drive locally and can charge at home, a shorter-range EV may serve you perfectly well.
When evaluating range, consider these factors:
Battery degradation: Recent GeoTab research shows that EV batteries now degrade at an average rate of just 1.8% per year—down from 2.3% in 2019. A five-year-old EV with an original 260-mile range will likely retain approximately 237 miles of range. New Stanford University research suggests EV batteries may last nearly 40% longer than previously thought under real-world driving conditions.
Temperature effects: EV range can decrease by as much as 20% in cold weather, according to Consumer Reports. Warm climates can also accelerate battery degradation; however, proper thermal management and charging habits can mitigate temperature effects.
3. Evaluate Battery Health Carefully
Battery condition is crucial when buying a used EV, but recent research provides reassuring news about longevity. A 2025 survey of 3,595 EV owners found that vehicles purchased in 2017-2018 showed approximately 93% battery capacity, while 2019-2020 models retained 96%, and 2021-2023 models maintained 97% capacity.
How to check battery health:
Many EVs include diagnostic software that displays battery condition on the dashboard. To understand how performance has changed, compare the dashboard’s estimated range at full charge to the manufacturer’s original specification to gauge capacity loss.
For a detailed analysis, use devices that plug into the OBD-II port to assess battery health, or ask the dealer for a comprehensive battery report.
Battery recalls can be a bonus: Some manufacturers have recalled batteries for specific models, meaning affected vehicles received newer batteries than their model year suggests. Examples include certain Hyundai Kona Electric and Chevy Bolt vehicles. A replaced battery can provide years of additional reliable service.
4. Understand Battery Warranties and Transferability
Most EV manufacturers offer battery warranties of 8-10 years or 100,000 miles, whichever comes first. These warranties can provide peace of mind, because battery replacements can cost between $5,000 and $20,000.
Critical warranty considerations:
Some warranties transfer fully to subsequent owners, while others have limitations. For example:
- Tesla battery warranties are transferable.
- Hyundai’s 10-year/100,000-mile powertrain warranty drops to 5 years/60,000 miles for non-original owners, but the battery system warranty typically remains at 10 years/100,000 miles.
- Many luxury brands offer transferable battery coverage.
Review the battery warranty fine print carefully before purchase. Details and exclusions vary significantly. Some warranties exclude coverage if the vehicle was used commercially or as an Uber or Lyft rideshare car.
5. Consider Certified Pre-Owned (CPO) Programs
Certified pre-owned EVs offer additional protection beyond standard warranties. CPO vehicles undergo rigorous multi-point inspections and often include:
- Extended warranty coverage (typically 1-2 years)
- Roadside assistance
- Free vehicle history reports
- Complimentary maintenance visits
- Exchange policies (some brands offer 7-day returns)
EV-specific CPO benefits:
All EV makers cover batteries for at least 8 years/100,000 miles, and this coverage transfers automatically to subsequent owners, regardless of whether the vehicle is certified. However, CPO programs may add comprehensive coverage for other components and provide greater peace of mind.
Manufacturers like Ford, Chevrolet, Hyundai, BMW, and Nissan offer EV CPO programs with varying benefits. While CPO vehicles cost more than non-certified equivalents, the added warranty and inspection process can be worth the premium.
6. Evaluate Total Cost of Ownership
While focusing on purchase price is natural, used EVs often provide substantial savings over time through lower operating costs.
Key cost advantages:
Fuel savings: The average EV owner saves between $6,000 and $10,000 over five years compared to a comparable gas SUV, primarily through reduced fuel costs. With the national average electricity rate around $0.17 per kilowatt-hour, charging at home costs roughly one-third of the cost of public DC fast-charging.
Maintenance savings: EVs have significantly lower maintenance costs because the use fewer moving parts, no need for oil changes, and experience less brake wear resulting in regenerative braking systems. According to AAA’s 2025 analysis, EVs have the second-lowest maintenance expenses among all vehicle categories.
Insurance considerations: EV insurance averages approximately $337 per month ($4,043 annually), which is typically $44 more than for gas vehicles. But that extra cost may be offset, as many insurers now offer discounts for low-emission vehicles, and rates are normalizing as EV adoption increases.
Depreciation trends: Used EV depreciation has historically been higher than for gas cars, but this is changing as newer models with longer warranties and higher demand improve resale values.
Additional Considerations for 2025 Buyers
Charging Infrastructure
Nearly two-thirds of EV charging infrastructure additions through 2030 are expected to be home chargers, making home charging access a key consideration. Installing a Level 2 home charger typically costs between $700 and $2,000, but it dramatically improves the ownership experience.
Public charging infrastructure continues to expand rapidly. Tesla’s Supercharger network dominates, and major networks like Electrify America and ChargePoint are adding thousands of ports. Many newer charging stations offer 15 or more ports, improved reliability, and enhanced amenities.
Market Timing
2026 is expected to be the “year of the used EV” according to market analysts, as over 1.1 million leased EVs return to the market. This increased supply should provide even more options for buyers while maintaining competitive prices.
Used EV prices are stabilizing after years of volatility, making it an ideal time to enter the market. The combination of improved battery technology, expanding charging networks, and near price parity with gas vehicles creates favorable conditions for buyers.
The Bottom Line
The used EV market has matured dramatically, offering unprecedented value for buyers. With prices at parity to gas vehicles, improved battery longevity, and comprehensive warranties, used EVs represent a wise financial choice for many drivers.
Ready to start shopping? Use resources like Carfax, Recurrent, and Coltura to research specific models and compare prices in your area.
Editor’s Note: Originally published on September 25, 2023, this article was extensively updated in October 2025.