Currently might not be the best period to purchase a car. However, if you absolutely must buy one, considering a pre-owned electric vehicle could be your optimal choice.
Allow me to begin this tale by stating that now is an exceptionally poor time to purchase a new vehicle. The automobile sector both within America and internationally finds itself in a tumultuous state of disarray. President Donald Trump's across-the-board 25% tariffs on all imported vehicles , and no one can predict what will come next. These tariffs might lead to various outcomes. permanent , as Trump has stated, or they might lead to new trade agreements with multiple nations, as Trump has also said .
At present, the automobile you have your sights set on might see an increase in cost ranging from $2,500 to $20,000. based on a recent analysis Of course, anticipated hikes in prices will likely filter through to the used market as well because items already brought in won’t be subject to these duties, potentially increasing their demand significantly.
However, if you require a more recent model in the interim, a pre-owned electric car has become significantly more attractive. Allow me to elaborate.
In essence, automobile prices have spiraled out of control since roughly the start of the pandemic. In March, the typical cost for a brand-new vehicle in the U.S. stood at approximately $49,000, marking an increase from around $37,000 back in March 2019. Consequently, this surge has led to a significant rise in the valuation of pre-owned vehicles as well.
Nevertheless, second-hand EVs remain an unusual exception. Given that the automotive sector doesn’t have a consistent benchmark for assessing battery values—coupled with Tesla’s series of swift price reductions in 2023—the pre-owned electric vehicle market has significantly declined.
2023 Hyundai Ioniq 5
Include the reality that we’re only starting to see the initial surge of modern, post-Model Y electric vehicle lease returns (consider models like the Ford Mustang Mach-E, Hyundai Ioniq 5, Volkswagen ID.4, etc.) hitting the market. This has led to an abundance of previously leased, gasoline-free used vehicles available today. These cars frequently come with low mileage and minimal signs of wear, which aligns with numerous studies showing similar trends over time. Their batteries are much stronger. Than many believe. And as recent as August, this magazine you're reading outlined the pre-owned EV market as being in "freefall ."
And as an extra benefit, the Trump administration along with Congress hasn't eliminated the used EV tax credit just yet, so you could get a $4,000 reduction With whatever you plan to purchase. Hopefully, you understand my point now. If you’re considering buying a car at present, a pre-owned electric vehicle might offer the most affordable options and the greatest bargains.
"The price of used electric vehicles has dropped by 15% to 20% every month over the past six months," according to the website iSeeCars. said in mid-March This makes the typical cost for a used electric vehicle aged from 1 to 5 years $32,198, which is $917 more than the average price of a gas-powered car at $31,281, as per the most recent iSeeCars analysis.
Sure, granted, mid-March was prior to the onset of all the tariff chaos, and it genuinely seems like more than just one month—closer to 50 lifetimes ago. Nevertheless, they remain relatively low at present. A swift look through Cars.com reveals the same. Kia EV6s similar to mine shows that they mostly fall within the mid-$20,000 range, with an absolute maximum of roughly $39,000. To put this into perspective, the MSRP on the model I leased was approximately $53,000. These price points apply even to the higher-end Wind variants, which are well-equipped and can comfortably achieve over 300 miles per charge in mild temperatures.
Kia EV6 Used
It appears to be the case for my EV6’s cousin, the Ioniq 5—another office darling. Here's a 2023 Ioniq 5 SE in St. Louis With over 300 miles of range for $29,995 and only 23,996 miles, this can almost be considered a brand-new vehicle. Someone else has taken care of the depreciation. (It’s uncertain whether the listed electric vehicle prices incorporate the used car tax credit—some do, others don’t. Be sure to confirm this detail with your sales representative.)
The situation is similar for the Mustang Mach-E, which also attracts many enthusiasts. Typically, these vehicles fall within the price bracket of $20,000 to $40,000 quite comfortably. Choosing between such an option and a Nissan Versa would be fairly straightforward. The EV version of the Mach-E is manufactured in Mexico, making it susceptible to potential tariff impacts down the road. Thus, purchasing this model at present might very well be the optimal choice.
2023 Ford Mustang Mach-E Premium
One of the top deals currently available is a pre-owned Tesla, largely due to their prevalence in the market and the large number being brought into dealerships for sale. reasons This indicates that you can choose a low-mileage Model 3 or Model Y for an even lower price compared to the alternatives mentioned earlier. Recently, the used prices for Tesla vehicles have dropped significantly. . There could be numerous reasons why you might currently be hesitant about purchasing a Tesla or perhaps you've recently sold yours, so consider this as merely a suggestion for you.
It’s important to recognize that we shouldn’t assume used electric vehicles will remain inexpensive indefinitely. Should these tariffs persist, they might lead to higher costs for all used cars, not solely those with internal combustion engines. However, the availability of tax credits along with their currently low prices makes this an exceptionally appealing choice.
Perhaps the car manufacturer you wish to purchase from is pledged not to raise its prices Perhaps any price hikes will diminish shortly. In either case, if you can wait a few weeks or months longer with what you currently have, that might be your best move. If you’ve had your sights set on an electric vehicle, now could be the time to act.
Contact the author: patrick.george@insideevs.com
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