Buying a Second-Hand Electric Car

Should You Buy a Second-Hand Electric Car?

Like any other big purchase, buying a used electric car has a number of pros and cons, which are important to consider before making any big commitments.

Here’s a look at some of the key benefits and drawbacks of buying a second-hand EV.

Benefits of Buying a Used EV

• Buying a used electric car comes at a much lower up-front cost compared to buying a brand new model
• Used EVs are subject to reduced depreciation, as they’ve already undergone their steepest drop in value. New EVs, on the other hand, experience steeper depreciation within their first few years on the road.
• EVs as a whole are much cheaper to maintain and have lower running costs because they don’t need oil changes and have fewer moving parts. 
• EVs are cheaper to run than their petrol or diesel powered equivalents - especially if you charge overnight with an EV specific energy tariff. 

Drawbacks of Buying a Used EV

• Compared to new EVs, used EVs are at a greater risk of having poor battery health at the time when you purchase them. While many manufacturers offer warranties, it’s crucial to understand EV battery depletion over time and the risk of needing a replacement.
• The EV market is still smaller than the ICE market, meaning you may have more limited choices regarding make, model, options, and colour.
• In some cases, buying a used EV instead of a brand-new model may result in a loss of government incentives.

Choosing the Best Make & Model

While the right model for you will depend heavily on how you use your car and your unique preferences, it pays to research some of the best-selling used EVs on the market and find out what’s driving their popularity.

Some of the best-selling premium second-hand EVs in the UK currently include:

• BMW i4
• Porsche Macan
• MINI Electric Hatch
• Jaguar I-Pace
• Range Rover Evoque (PHEV)

As with petrol and diesel cars, it’s always worth looking into the quality of performance that differentiates premium and budget EVs, and how this will impact your long-term investment. 

While budget range EV models do boast a lower up-front price point, buying one may mean that you lose out on variables like build quality, EV driving range, charging efficiency, and technological features.

Battery Type: Full Battery Electric Vehicles vs Plug-in Hybrids

Another key consideration when you’re in the market for a used EV is the battery type you’ll use - either full battery electric (BEVs) or plug-in hybrid (PHEV).

BEVs use no fossil fuels and produce no tailpipe emissions, allowing you to avoid congestion charges in certain areas and drive knowing that you have a minimised environmental impact. On the other hand, your driving range will depend solely on the car’s battery capacity, and accessing the necessary charging infrastructure may be tricky if you don’t have access to a home EV charging setup.

PHEVs, which combine an electric motor with a standard petrol or diesel engine, offer the flexibility of making trips using one fuel or the other (or a blend), making them ideal for driving electric over short trips or relying on petrol and diesel for longer journeys. On the downside, hybrids still produce emissions and tend to have heavier drivetrains than pure electric cars, which can lower their efficiency and range.

Before exploring your options, it’s important to study the differences these traits will make to your experience behind the wheel and how well they align with your personal driving habits.

Checking Battery Degradation

One of the biggest differences in the experience of buying a used electric car vs. a traditional ICE vehicle is the need to consider battery degradation. Battery degradation is a natural process by which an EV’s battery capacity depletes over time, which will potentially affect your driving experience.

There are many ways to assess a used EV’s battery health and capacity, including:

• Checking the battery state of health (SoH) provided by the manufacturer or diagnostics from your dealer.
• Using an OBD scanner.
• Checking the service records of the vehicle.

It’s worth noting that many EV manufacturers maintain separate warranties for EV batteries, with some of these covering up to 8 years past registration or 100,000 clocked miles, whichever comes sooner. Some warranties even include a clause guaranteeing a minimum battery capacity, usually around 70%.

A used EV may have some of this protection remaining, so even if you discover issues with a used electric car’s battery capacity, you may be able to have the battery repaired or replaced for no additional cost.

Replacing an EV’s battery can be very expensive, costing somewhere between £4,000 and £16,500 on average, depending on the model and battery size. With this in mind, we strongly recommend checking for battery depletion in any car you’re considering and prioritising a healthy, high-capacity battery.

How Much Do Second-Hand EVs Cost?

Right now, the average cost of a second-hand EV in the UK falls somewhere between £10,000 and £20,000. As a general rule, used EVs typically have price parity with their ICE equivalents, albeit there will be some instances where the EV model is cheaper than the equivalent ICE car. You will also benefit from the long-term savings in maintenance and running costs when buying a used EV.

Ongoing Maintenance Costs

One of the key features that makes driving an EV cheaper than an ICE vehicle is their reduced maintenance costs. EVs have fewer moving parts that are subject to wear and tear, and don’t need certain kinds of routine maintenance like oil changes. The majority of modern EVs also facilitate over-the-air software updates, making them able to improve mechanical performance with no need for physical work on your car.

Having said that, when an EV does need maintenance for its battery or electric motor, repairs can be expensive as you’ll need to find a mechanic with the right knowledge and tools to carry out quality electric vehicle repairs. 

Though an increasing number of mechanics in the UK are expanding their service offerings to accommodate EV drivers, for the time being, you may need to expect higher costs for repairs as and when they’re needed. This is another reason why it’s crucial to get informed on the service history of any car you’re considering, particularly when it comes to battery degradation.

When it comes to insuring your EV, you can expect lower premiums for used EV cars compared to new ones due to their value already having undergone some depreciation. However, EV insurance is often more expensive than policies for comparable petrol or diesel models due to the need for more specialised mechanics in the event of an accident.

Electric Car Maintenance Costs

Used EV Charging Costs & Options

The way you charge your EV will have a major impact on its long-term costs, so it’s important to do your research ahead of buying a used electric car and budgeting for the cost of ownership.

While a home charging setup comes with an upfront cost, it’s by far the cheapest option compared to relying solely on public charging networks. If you charge at home using an off-peak EV energy tariff, you can expect to pay around 7p per kWh, compared to public charging which will cost around 50-80p per kWh, depending on the speed of the charging point.

When advising customers who are making the switch to an EV, we often get asked if a home charger is necessary for buying a second-hand EV. While it’s possible to own an EV and rely solely on public charging networks, it’s highly recommended that you invest in a home charger both for the long-term savings and increased convenience.

Though some councils offer residential on-street charging for those without driveways, and the UK’s public charging infrastructure is expanding all the time, many drivers will still find it difficult to square public charging with their day-to-day driving habits.

Buying and installing a home EV charger will cost an average of £800 to £1,200, before any deductions from government installation grants. If budgeting this into buying a second-hand EV feels like it will be a challenge, we offer a range of flexible EV finance plans that can help spread out the cost in a way that suits you. Find your finance plan today.

Finance & Cost Of Owning An Electric Vehicle

Is a Second-Hand EV Tax Deductible?

If you’re thinking of buying a used electric car through your business, you may be eligible for some tax relief that can make the purchase more affordable in the long run.

Up to 2028, second-hand EVs will be eligible for the main rate of capital allowance of 18%. This rate also applies to some PHEVs, provided the model’s CO2 emissions are 50g/km or less. Unfortunately, this is one of the areas where second-hand EVs lose out to new EVs, which are eligible for 100% first-year capital allowance deductions.

Electric cars, whether new or used, also benefit from significantly lower benefit-in-kind (BiK) rates compared to petrol or diesel cars, currently at 3%, compared to BiK rates as high as 37% for some high-emission ICE models.

Note that the final BiK tax calculation for a used EV bought through your business will depend on the car’s list price, CO2 emissions, and the income tax rate of the employee receiving the car. For an accurate projection of how much BiK you’ll pay for a second-hand EV, you’ll need to take these variables into consideration and make a calculation tailored to your business.

Where to Buy a Second-Hand EV

Buying a used EV is a smart and cost-effective way to make the switch to electric, but it’s essential to go in knowing how to find a reliable vehicle and what to look out for to get the best deal possible.

Whatever model you decide on, we strongly recommend buying a certified pre-owned EV from a trusted dealer rather than a private seller, as this will come with certain assurances in terms of vehicle quality, consumer protection, and warranty and aftercare.

Here’s a quick comparison of the main distinctions between buying from a professional dealer or going private:

If you’re looking for a reliable, worry-free second-hand EV, a certified pre-owned model from a dealer is almost always the best choice. However, if you’re comfortable doing your own checks and negotiations, you may be able to find better deals through a private seller. Just be sure to verify the car’s battery health, service history, ownership records, and other variables before you agree to anything.

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