33What’s the market
like for used EVs?
With higher sticker prices mostly
due to expensive battery packs, EVs
tend to depreciate faster than gas-
powered cars, according to Anil Goyal,
executive vice president of operations
at Black Book, an automotive pricing data company.
But he expects newer EVs with 200 miles of range
to retain their value better.
EVs have lower energy costs and require fewer
repairs, but depreciation is so steep that the five-
year cost of owning one is still more expensive
than a gas-powered version, says Eric Ibara, director
of residual values at Kelley Blue Book. “Used-car
values are all about supply and demand,” he says,
“and we haven’t seen a real increase in the demand
for used EVs.”
The depreciation of EVs has been profound due to
a $7,500 federal tax credit that’s still available for
most new models but not for used ones. For example,
a new 2017 Nissan Leaf that sold for $35,455 before
factoring in the tax credit now has an average used
wholesale price of $10,600, according to Black Book
data. That’s about 30 percent of its original price.
By comparison, a gas-powered 2017 Nissan Sentra
that sold new for $19,875 is now valued at $8,950
wholesale, or 45 percent of its original price. (Teslas
are no longer eligible for the federal tax credit; GM
models lose their tax credit after March 2020.)
It’s a buyer’s market for used Leafs. That’s partly
because Nissan sold a lot of them on three-year leases
that have been expiring during a period of low demand
for energy-efficient vehicles, Ibara says. The same is
true for the Chevrolet Volt plug-in hybrid. In contrast,
Tesla models have retained their value well. If you’re
considering a used EV, you can find bargains.
This is one thing you don’t need to
worry about. EVs lose hardly any
range in standstill traffic, says Gabe
Shenhar, associate director of CR’s
auto test program. The motor runs the
batteries down only when the wheels are moving.
For most gas cars, the engine runs all the time
and burns fuel in congestion. The major drains on
EV batteries are the heater, air conditioning, hilly
terrain, and aggressive acceleration, he says.
Will an EV die
in stop-and-go
traffic?
WHAT EV CHOICES DO
I HAVE RIGHT NOW—AND
WILL THERE BE MORE SOON?
CURRENTLY THERE ARE about 17 EVs on themarket. But more are coming this year and in2021 (see pages 34 through 36).One of the best ways to keep up with news about EVsis to go to CR.org. The Department of Energy also keepsa running database at energy.gov/eere/electricvehicles/find-electric-vehicle-models.HATCHBACK
BMW i3
Chevrolet Bolt
Fiat 500e
Hyundai Kona
Kia Niro
Kia Soul
Mini Cooper SE
Nissan Leaf
Volkswagen eGolf
SEDAN
Honda Clarity
Hyundai Ioniq
Porsche Taycan
Tesla Model 3
Tesla Model S
SUV
Audi E-Tron
Jaguar I-Pace
Tesla Model X
A:
A:
A:
APRIL 2020 CR.ORG