WHY BUYING A 3-YEAR-OLD EV OFFERS THE BEST BANG FOR YOUR BUCK
What if you could get an almost new EV at about half the price? How would that work? Is it even possible? We would all love to drive an electric vehicle. Not only is it good for the environment, but EVs are fast and accelerate like supercars. They are quiet too, and usually loaded with tech. They are cheap to drive and to maintain as well.
The killer is the price of an EV. Even though prices are coming down, an EV is still significantly more expensive than an equivalent ICE car. EVs come with luxury car price tags, even when they are not. And, it is well known that EVs generally depreciate faster than other cars. Why pay so much now when next year's model may well be cheaper? You will never get your money back.
So you could buy a new EV now and drive it for 8 or 10 years and probably get your money back. Or you could buy a three-year-old EV at a fraction of the original price, skip the pain of depreciation, and drive what is practically a new EV. Here we explore how this works and why it is a good idea.
In order to give you the most up-to-date and accurate information possible, the data used to compile this article was sourced from various manufacturer websites and other authoritative sources, including Edmunds, Kelly Blue Book, and Consumer Reports.
How Battery Life Affects The Resale Value Of Used EVs
Here's how to get the most out of your battery, whether you're selling an EV or trying to make yours last until the wheels fall off.
EV Depreciation: Why 3 Years Is The Sweet Spot
Used EVs Lose Value Faster—But, That’s Good For Buyers
If you believed an EV was a good vehicle to buy, but you were hesitant because of the rather steep price of a new EV, now is the time to consider looking at a 3-year-old model instead. You could pay 40 to 50% less than for a new one, and get an EV with a battery warranty that is still good for 5 or more years. ICE cars would typically depreciate by 30- to 50-percent over the same time.
Use Depreciation To Find Value
All cars depreciate in value, and the deprecation curve flattens out by around the third year. Three years is the sweet spot to buy, because most of the immediate depreciation has already happened, but today’s EVs are still mechanically sound at that age, and the benefits of a brand-new car are not as much as the difference in asking price. The balance of the battery warranty takes away any reliability concerns the buyer may have.
EV Depreciation
2022 MSRP | Average Used Price In 2025 | Depreciation | |
Tesla Model 3 LR | $55,990 | $30,000 | 46% |
Ford Mustang Mach-E | $50,000 | $28,000 | 44% |
Chevy Bolt EV | $31,000 | $17,000 | 45% |
Hyundai Ionic 5 | $44,000 | $26,000 | 41% |
VW ID.4 | $42,000 | $24,000 | 42% |
A three-year-old EV is well-equipped and has modern features, and the best thing is that you can get it at almost half the price of a new one.
But buying a used EV, apart from the battery warranty, still requires the same diligence as buying any used car. You still have to inspect the vehicle, and check for rust or accident damage. Worn, damaged, or stained upholstery is expensive to replace, and most of us do not want to buy a smoker's car. If that is the car you want, and it is mechanically sound, has a solid maintenance record, the tires are still good, and it generally looks well cared for, you should have a good bargain right there.
10 Most Reliable Used EVs Under $30,000
These 10 affordable EVs are some of the more sought-after models, and they aren't as old as you may think.
Cost Savings On Ownership And Charging
Used EVs Are Cheaper To Own Than Gas Cars
When you save that much by purchasing a three-year-old EV, you will obviously save by paying less financing and lower insurance premiums. But, EVs bring other cost advantages as well.
EVs Are Cheaper To Own
EVs are still new compared to ICE or even hybrid technology, but mechanically, an EV is the simplest drive of any car. An ICE has all the moving, turning, and friction-inducing parts that can go wrong, while a hybrid has that and many of the same things as an EV. A plug-in hybrid is the most complicated, with a full ICE system, and a full EV system that can work separately, but must also work together.
An EV has few things that can go wrong. There is the battery, the motors, the charging system, and the electronics that connect them all. There is also the regenerative braking that could have an unhappy relationship with the ABS. But this system is simple and has very few moving parts. The most expensive are the batteries, which is why the battery warranty is so important. EVs are also cheaper to drive. Home charging costs 75-percent less than refueling a gas car, and many public charging networks offer discounts for used EVs.
EV Vs ICE Car Ownership Costs
3-Year-Old-EV | New ICE Car | |
Purchase Price (Est) | $25,000 | $35,000 |
Annual Charging/Fuel Cost | $500 | $1,800 |
Annual Maintenance | $400 | $1,000 |
Total 5-Year Cost (Est) | $30,000 | $45,000 |
The bottom line is that a three-year-old EV can save you well over $10,000 in ownership costs compared to a new ICE car.
2024 Kia Niro EV Charging Costs And Range Explained
The Kia Niro EV's affordable charging rates makes it a viable option for first-time electric car owners.
The Best Three-Year-Old EVs To Buy In 2025
The Top Used EV Models With Reliability And Value
Just because used EVs are so affordable to buy and cost-effective to own does not make all such EVs equally good buys. Apart from price, the biggest drawback to EVs has been range anxiety - the fear of running out of battery before reaching your destination. Another concern is the cost of replacing batteries when they eventually wear out.
EV ranges have steadily improved over the years. While battery prices are coming down all the time, the security of a battery warranty is a very important consideration when purchasing a used EV. As with any used car, the buying decision should be based on finding the perfect balance of price, range, reliability, and features.
Best Balanced Three-Year-Old EVs
2022 Range (EPA) | 2025 Price (Est) | Warranty Coverage Left | |
Tesla Model 3 LR | 358 miles | $30,000 | 5+ Years Battery |
Hyundai Ioniq 5 | 303 miles | $26,000 | 5+ Years Battery |
Ford Mustang Mach-E | 314 miles | $28,000 | 5+ Years Battery |
Chevy Bolt EV | 259 miles | $17,000 | 5+ Years Battery |
VW ID.4 | 275 miles | $24,500 | 5+ Years Battery |
Another consideration when choosing a used EV is that Tesla's Supercharger network makes the Model 3 and other brands that can access it great for road trips. Features and technology are important as well, and the Ioniq 5 and Mustang Mach-E both offer fast charging and great technology for the price.
Why Buying Used Beats Buying New
Avoid New Car Markups, But Get Proven Reliability
New EVs are expensive, because of the dealer markup on top of the MSRP. Although EVs are the simplest kind of vehicle to manufacture, batteries are still expensive and make up most of the cost of a new EV. Traditional lithium-ion battery prices are however coming down, and the manufacture of an EV will soon cost the same as an ICE vehicle, and drop more until EVs are cheaper than ICE vehicles.
Furthermore, in the next four to five years, solid-state batteries should become available in the mass EV market. These will be game changers, as they will bring longer range, and lower EV prices even more, while at the same time lasting longer, having more power to weight, and costing less to make. While these factors will bring down the prices of new EVs, they will also lessen the depreciation that now makes used EVs so attractive to savvy buyers. But for now, a used EV is well worth looking at.
Used EV As Good As New
When you buy a three-year-old EV, you get pretty modern technology at a huge discount. EVs don't wear out as fast as ICE cars, and their technology is controlled by electronics that can be updated like a laptop, giving you the latest software, and essentially a car that is as good as new.
Used vs. New EV Buying Comparison
New EV | 3-Year-Old EV | |
Price | $40,000+ | $25,000 |
Depreciation Three Years | 40-50% | Already Depreciated |
Tax Credit Available | Sometimes | Yes, for now |
Battery Warranty Left | Yes | Yes |
Technology Updates | Yes | Yes (OTA Updates) |
At the moment, there is also a 30-percent tax credit to a maximum of $4,000 available, although it is currently not certain if this will remain in place. While it is still valid, this will reduce the price of the used EV even more. A three-year-old EV delivers the sweet spot of price, range, and ownership costs.
2025-02-16T03:01:27Z