Description:

• The price of new vehicles, including electric vehicles (EVs) and gas vehicles, has skyrocketed.
• Average vehicle prices are now $40,000-$50,000, leading to car payments of around $1,000/month—more than some rent payments.
• With the rise of EVs, many consumers are considering buying used EVs to save money.
• The Key Risk with Used EVs: The condition of the battery.
• Why Battery Health Matters:
  • The battery in an electric vehicle is like the engine in a traditional car—it's the core driving component.
  • Over time, lithium-ion batteries lose their ability to fully charge, which reduces the vehicle's range, just like how a phone or laptop battery degrades.
  • As the battery degrades, the car becomes less valuable, and its range drops.
  • For example, a car with a 250-mile range could quickly drop to 160-170 miles.
• Warranties and Battery Health:
  • Most new EVs come with an 8-year, 100,000-mile warranty for the battery.
  • However, this warranty only kicks in if the battery’s capacity is reduced to less than 70%.
  • You could be stuck with a battery that has a 30% reduced capacity, and the warranty won’t cover a replacement.
• Cost of Replacing the Battery:
  • Replacing an EV battery can cost up to $20,000—or more. Some EV batteries cost over $30,000.
  • In some cases, replacement batteries may no longer be available for certain vehicle models, making repair impossible.
• What to Do Before Buying a Used EV:
  • Check the vehicle’s range and ensure it’s consistent with the manufacturer’s specifications.
  • Consider getting a used car inspection from an EV specialist to assess the battery's health.
  • If the range isn’t adequate for your needs, the savings from buying a used EV may not be worth it in the long run.

Takeaway: When buying a used EV, always prioritize the battery’s condition. A bad battery could cost you more than you saved by buying used.