Purchase of a used electric vehicle

Purchase of a used electric vehicle
For or against?


2016 Soul EV


2017 Chevy Bolt EV long term car. (Photo by Brian Brantley / Brian Brantley Media, © 2017)











THE WORLD OF ELECTRIC VEHICLES (EVs) IS STILL YOUNG, BUT WITH THE COMING OF ZERO-EMISSION VEHICLE ACT 104, THE AVAILABILITY OF THE LATEST WILL GROW. FOR MANY PEOPLE, THERE ARE STILL MANY BARRIERS TO PURCHASING AN ELECTRIC VEHICLE.

FOR SOME, it is the autonomy that is still a little weak; for others, it's the cooldown that is too long. We can also mention a style of vehicle that does not meet the needs of the buyer. But in the majority of cases, it is still the high price of a new model that is holding back the faster expansion of electric vehicles. Slowly, we are starting to see the emergence of a market for used electric vehicles. In order to save a good amount of money, is it a good idea to switch to second-hand electrics? Let’s look first at the picture for new vehicles.

In recent years, we have been entitled in Quebec to a tax credit of $ 8,000 from the provincial government on the purchase of a new EV (with a base price of less than $ 60,000) plus a $ 5,000 from the Federal government if the base price of the EV is less than $ 45,000. These amounts are deducted after taxes and are refunded to the dealership. Quebec, which buys half of all EVs sold in the country, is also the most favored by purchasing incentives. In the case of a new EV, many people turn to leasing. In this case, the credit company that purchases the vehicle on behalf of the dealership obtains the tax credits and passes the savings on to the renter by reducing the monthly payment on the car. This is how you can end up with about a monthly amount that makes purchasing more affordable.

What about used models?

It should first be noted that the relative youth of the EV segment is a handicap. The only fairly popular model eligible for the $ 4,000 grant is the Nissan Leaf. It will be very difficult for you to find a Mitsubishi i-Miev or even an electric Ford Focus, as sales of new models have been practically non-existent. But there is hope. With a new home market rapidly gaining ground, this means that the second-hand market will follow and that the supply will grow rapidly. The increase in battery life, purchasing aids, threats to restrict traffic in city centers, but also a change in mentality, have given a boost to the market.

What about depreciation?

In terms of resale value, the electric model does not follow that of the gasoline model. Typically, a gasoline model will lose 25% of its value the first year, 18% the second, 15% the third and 12% the fourth (then 10% each year). In the case of an EV, the initial depreciation is greater because of the buying incentives, which the seller calculates from an already reduced price. Subsequently, the residual value is better and the floor price will be higher than that of a gasoline car. One must also take into account the high reliability of electric motors, which makes used vehicles very desirable products.

What should you watch out for in used electric models?

As with a gasoline-powered car, the electric model should contain a checklist. We must focus on the engine, batteries and their charging system. You have to start with the battery. Similar to the batteries in your laptop or smartphone, it will lose battery life over time. The loss of range of an electric vehicle over four or five years is estimated at around 15%. This means that the 150 km become 135 km after five years, and that, in good conditions. This also means that in winter, it is necessary to remove another 25 to 30% and up to 50% in extreme cold. An important element to remember. The battery warranty is typically eight years and 160,000 km for many models. You should also know that replacing batteries is a very rare thing. So even with the purchase of a used EV, the battery will still have many good years ahead. Next, you need to check the charging sockets and cables. They must be in good condition, as proper charging depends on the condition of cables and outlets, especially if you are doing fast charging. There should be no nicks, cuts, abnormal wear or twisting of the cables. Finally, an engine check is also necessary, but in general, the great simplicity of the electric motor and the few moving parts make e