Take Advantage of the Dip: Pre-owned EVs Appear to Be a Smart Investment at This Time

      Vehicles like the 2022 Ioniq 5 are a fantastic bargain right now.

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      Over the past 18 months, we’ve encountered numerous headlines proclaiming the demise of electric vehicles (EVs), with manufacturers scrambling to shift towards hybrids to mitigate substantial losses in their EV divisions. However, there’s another trend emerging: gasoline prices are soaring, and a remarkable selection of recent electric cars is entering the used market as they are returned from leases or traded in by their original owners. We may be approaching an excellent moment to transition to EVs.

      Not long ago, going electric meant either making a significant financial commitment (purchasing an expensive vehicle) or making considerable compromises (such as driving an i-MiEV). This stark choice has disappeared. A quick search on CarGurus today reveals an extensive array of appealing, relatively new electric vehicles for under $25,000, with some attractive options available for even less. My local Volkswagen dealership has a pristine 2019 e-Golf priced around $12,000, and you can find even better bargains with a little exploration.

      Interestingly, for used cars costing less than $20,000, the average used EV is currently about two years newer and has 40,000 fewer miles compared to gasoline cars within the same price range, based on information from the Car Dealership Guy website.

      The conditions are already shaping up for 2026 to be a favorable time for purchasing a used EV. Forbes recently presented a strong argument regarding the value of secondhand electric vehicles, referencing data on days-on-lot and consumer interest.

      Additionally, there’s the impact of the Hertz situation—the rental company flooded the market with over 30,000 used EVs, effectively establishing a new pricing standard in this market segment.

      In summary, if you're in search of a great deal on a recent used vehicle, consider electric cars. Both buyers and sellers appear to be growing aware of this opportunity. In the mid-March Manheim Used Vehicle Value Index just released by Cox Automotive, the EV Index saw a year-over-year increase of 6.7%, indicating that we may have hit—or be nearing—the bottom of the market lull, and demand might actually be on the rise.

      Moreover, all of these insights were shared before geopolitical tensions disrupted some of the world's wealthiest oil reserves and critical shipping routes. If you haven't recognized the recent trends in fuel prices, here’s another piece of information: crude oil prices are skyrocketing.

      The narrative of an “EV Winter” that dominated mainstream media late last year has seemingly laid the groundwork for a genuine recovery—though it is manifesting in the used market rather than new car showrooms.

      Electric vehicles aren't without their flaws—they can still be costly to insure, and the charging infrastructure in various areas of the United States can be lacking. Nevertheless, the range of used EVs available today presents better value than ever before, and in tangible terms, EVs are increasingly appearing as smarter choices compared to similar gasoline vehicles. The time of spending $60,000 on a car to save $2,000 annually on fuel has passed; switching to an electric car suddenly makes much more financial sense. Forget environmental concerns—considering an EV for your next vehicle may be an effective way to combat $110-a-barrel oil.

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