The Surging Demand for Used Electric Vehicles: A Deeper Look
In a surprising twist amidst a slowing new EV market, the allure of used electric vehicles (EVs) is on the rise. March witnessed the sale of nearly 43,000 secondhand electric cars, setting a new record for monthly sales. This surge comes as potential buyers weigh the pros and cons of purchasing pre-owned EVs, particularly regarding battery longevity.
“That was on no one’s bingo card,” remarked Scott Case, the CEO and cofounder of Recurrent—a company specializing in monitoring the health of used EV batteries. He added, “September 30th of last year, all the rebates run out, and that’s it. We’re supposed to be in EV-apocalypse land right now.”
Despite challenges in the new EV market, the demand for used models is being bolstered by an influx of modern, off-lease vehicles. Case highlighted another factor for this shift during an episode of the InsideEVs Plugged-In Podcast: elevated gas prices are driving consumers from new to used markets. He stated, “I can’t believe I’m thanking the Trump administration for accelerating the EV transition, but that’s exactly what they’re doing.” Furthermore, buyers are realizing they can acquire a more advanced vehicle by opting for a used EV over a traditional combustion engine car.
The topic of battery degradation is critical for potential buyers. While some see it as a drawback, others view it as an opportunity to secure a great deal due to depreciation. The central question for used EV shoppers remains: should one worry about range loss or battery degradation?
Recurrent’s extensive research, encompassing over a billion miles of electric driving data from tens of thousands of vehicles over six years, offers reassurance. Case asserts that modern EVs maintain their range effectively over time. The data indicates that on average, an EV retains 97% of its initial range after three years and 95% after five years. While extreme climates or frequent fast-charging can influence battery health, the overall variance in range for relatively new EVs is minimal.
“The biggest surprise for me over that period and looking at all that data coming in is basically these cars are holding up way better than I expected going into the company,” Case noted. Recurrent’s findings also reveal that certain brands, including Cadillac, Ford, Hyundai, Mercedes-Benz, and Rivian, show no observable range decline after three years. Although these batteries do degrade over time, the process is gradual, and some manufacturers incorporate hidden buffers to ensure consistent vehicle performance.
Full battery failures in modern EVs are extremely rare, with Recurrent reporting a mere 0.3% replacement rate. “This is new technology relative to combustion engine cars, so I think the fear is just way overblown compared to the reality of what actually happens,” Case observed.
For savvy buyers, concerns about battery and range loss can translate into significant savings. Case suggests that an EV with a recently replaced battery, especially one covered under warranty, can be a hidden treasure. “It’s rare but if you can identify that there’s a car that’s five or six or seven years old that got a battery replacement a year earlier, that’s an incredible deal,” he advised.
Contact the author: Tim.Levin@InsideEVs.com
Original Story at insideevs.com