Key points
  • Buying a used EV can provide good value, but as with purchasing any used bar, due diligence is essential.
  • While EV batteries do degrade over time, they typically do so more slowly than many buyers expect, but battery health, charging habits, and climate exposure matter.
  • EV depreciation isn’t uniform - while some models have lost value faster amid technological change and increased competition, depreciation rates vary widely.

Like smartphones, electric vehicles (EV) have a rechargeable battery and, as you’ve probably noticed with your phone after a year or two, these batteries tend to deteriorate. Of course, there are some differences between your tiny phone battery and a huge EV battery, but the concept remains. Because of that deterioration, and a few other reasons, you should use caution when buying a used EV.

  1. Savings.com.au's two cents

Buying a used electric vehicle could present a great-value buying opportunity. However, like any car, there are checks you’ll want to do first.

One of the main concerns will likely be the battery’s longevity. Many manufacturers have a generous battery warranty upwards of eight years, but you should still try to verify how the previous owner treated it. EVs in hotter climates or those regularly charged using fast chargers might have experienced an above-average rate of battery degradation. 

Should I buy a used electric vehicle (EV)?

Before jumping into the cheapest Tesla and charging off into the sunset, it’s important to do your research. Here are some key points to think about:

Do EV batteries degrade over time?

The batteries in electric vehicles aren’t too dissimilar to what you find in your iPhone - but on a larger scale. And like smartphone batteries, they deteriorate over time.

  1. According to the Electric Vehicle Council, the majority of EV batteries come with eight to 10-year warranties on batteries and motors and a 'spent' EV battery can be expected to hold around three quarters of its original charge - meaning a car driven out of the showroom with a 500 kilometre range might end its usable life with a 375 kilometre range - more than enough to get most drivers to the shops and back comfortably.

    Other data from 10,000 EVs analyised by Geotab found EV batteries lose an average of 1.8% of their charging capacity per year, giving them a lifespan of 20 years or more. However, battery degradation tends to happen in a big initial drop followed by a slow petering - something worth bearing in mind if you're buying a used EV.

Unlike traditional cars, mileage is not typically a factor in the lifespan of EVs. Instead, heat, age, condition, and charging habits play a big role in their lifespans.

Cars in hotter climates and those charged frequently with direct current fast charging (DCFC) might show more signs of battery degradation, while the amount of use a car gets has little impact, Geotab found.

So, if you’re buying a used EV, chances are you could still be getting most of the battery capacity, but you might want to get a gauge on the previous owner’s usage habits. 

What technology is included in a particular model?

Electric vehicles are often very technology-heavy in the interior. This includes fancy entertainment units, heads up displays, electric seats, digital instrument clusters, fancy transmission levers, and more. The long-term reliability of such electronics - and the separate battery typically powering them - remains to be seen.

Just like that old iPhone 4 sitting in your drawer inoperable, all of that technology in your EV has the potential to become outdated, unsupported, or even malfunction.

Typically, a lot of an EV vehicle controls and monitoring systems are managed through the entertainment system, meaning if the screen goes black, a lot of your car’s driving functions may be compromised. Of course, we aren’t singling out EVs - other cars carry the same potential problems - petrol and diesel ones included.

Does a particular EV exhibit general wear and tear?

One of the main benefits of an electric car is that it doesn’t have an internal combustion engine (ICE). They simply have fewer moving parts.

Things you won't need to deal with if you own an EV include:

  • Oil and fuel filter changes
  • Spark plug replacements
  • Exhaust maintenance
  • Timing belt or chain replacements

But that doesn’t mean an EV doesn’t need maintenance at all. One of the biggest maintenance items is going to be your tyres - a Tesla Model S has a 21-inch rim diameter, meaning you’ll need very large (and potentially expensive) tyres. Two other important items are brakes and their fluid, and coolant, which will still require upkeep.

Do EVs depreciate faster than ICE vehicles?

We’ve covered depreciation rates more broadly, but electric vehicles can depreciate even quicker than their internal combustion engine (ICE) counterparts.

This may be because technology in EVs has come in leaps and bounds in the past few years and older EVs simply don't compare well to newer models. Or perhaps because the EV market has grown at lightening speed in Australia, with cheaper models from the likes of BYD and MG flooding the market, forcing those selling older models to lower their expectations to compete.

Ultimately, though, the outcome of various analysis comparing depreciation of EVs against that of ICE cars doesn't come to a neat conclusion. Some suggest EVs depreciate notably faster, others that the difference in depreciation rates is minimal.

Additionally, the story isn’t consistent across the market. Depreciation varies widely by make and model, and factors like kilometres, condition, service history, and remaining warranty still do a lot of the heavy lifting when it comes to retaining value.