Electric cars are typically much more expensive compared to their petrol counterparts. The higher price tag has become a barrier to ownership for many. This is especially true for people with limited budgets. Those truly eager to own an electric car have turned to Australia’s growing second-hand electric car market.
Due to the limited supply of electric cars in the past few years, buying a used electric car may not save you much. But now, as newer electric cars enter the market, the demand for second-hand electric vehicles is expected to lower. This may lead to prices for second-hand electric cars becoming much more affordable.
Is buying a used electric car a good idea?
The short answer is it depends. A used electric car could be a cheaper and more sustainable way to own a car. If you find a well-maintained electric car that meets your needs at a bargain price, then yes it could be a great idea to buy one.
Ultimately, it all comes down to what your budget, needs, and preferences are. Understand what you are getting into when you buy a used electric car. Know the pros and cons to see if it’s all worth it.
Advantages of buying a used electric car
Here are some of the benefits of buying a used electric car:
- Save on the purchase price and upfront costs. Buying a second-hand electric car could mean getting one of the best electric cars in Australia for cheap. Even though electric cars hold their value better than their gas-guzzling counterparts, you’ll still get decent savings buying pre-owned rather than new.
- Get extended warranties. Electric vehicles usually have long manufacturer warranties. Some batteries even have a warranty of up to ten years. The warranty may extend to new buyers as well, so you will still be covered. For instance, you buy a car that is five years old and still enjoy the warranty for five more years.
- Electric cars typically require less maintenance. Electric vehicles do not have a lot of moving parts compared to a regular car. Less moving parts means fewer things that could break down over time. You may save more money down the line in terms of maintenance costs too.
- Electric cars are better for the environment. With a used electric car, you can lessen your environmental impact and save money while you are at it. Electric vehicles do not produce as many pollutants as regular petrol or diesel-powered vehicles. However, they do create some emissions while they are being built. By purchasing a used electric car, you will be lessening your carbon footprint.
- Decent resale value. If you choose to resell your used electric car, you can still get a good deal on it. Depreciation on electric cars does not occur faster than regular cars. This means you could drive your electric car for longer while still getting good value on it.
Drawbacks of buying a used electric car
Buying a used electric car also has some disadvantages such as:
- Battery health degrades. Used electric cars typically have a reduced range. Over time, the battery health declines which could result in losing charging capacity. You may be able to replace it for little to no cost if it’s still covered by the warranty.
- You may experience charging issues. There are battery life uncertainties when buying a used electric car. You may not be able to accurately tell how long a battery will be good for. Before buying a second-hand electric car, ask about the charging history and what condition the battery is in.
- Usual wear and tear. Just like any used car, second-hand cars experience the daily wear and tear that adds up through the years. Even though electric cars usually require less maintenance, you still have to make sure they’re in the right working order. You must check the brakes, suspension, and other aspects of the vehicle to ensure that it’s safe to drive.
- You may be stuck using an older technology. As electric car technology continues to advance at a rapid pace, you may find used electric cars to be leagues away from the latest models. Newer electric cars are equipped with longer battery lives, more efficient engines, and other features. Always think about your needs to see if a used electric car suits your lifestyle.
How can you finance your used electric car purchase?
At the end of the day, the answer to the question ‘Should I buy a used electric car?’ depends on whether you can afford it. Check out our electric car loan calculator to see how much your monthly payment could look like.
There are various ways you can finance your electric car purchase, from electric car loans and green car loans to used car loans. Let loans.com.au help you find the perfect financing option for you. Get in touch with one of our friendly lending specialists today!