Why Are Used Electric Vehicles so Cheap?

Why Are Used Electric Vehicles so Cheap?

Many of us wonder about “ are electric cars cheap?”. The general answer to this question is NO! Electric cars are much more expensive to buy as compared to gas-powered but in the long run, they are becoming more feasible and affordable than gas-powered. Electric car prices in 2021 were skyrocketing due to a massive chip shortage due to pandemic. Same chip shortage was among the used cars' high price reasons because no more newer cars were produced and there was a massive gap between demand vs supply.

Now the situation is becoming under control as more manufacturers are beginning to reproduce due to a  better supply chain situation. Still the used car price in 2022 is higher than its deserved value because the dealers had been stocking the used cars at a higher price in the chip-shortage situations, so they are hesitant to take massive losses by selling them at a much lower prices in 2022. Slowly and surely multiple vendors and maximum supply will eventually put fire to this whole firing scenario. Surprisingly, the electric used cars are cheapest in 2022 as compared to other used cars in the market because of many reasons.

Why Are Used Electric Cars Much Cheaper?

The second hand EVs are much cheaper as compared to their worth. Gas-powered used cars lose their value gradually per year but the electric cars face the quickest price depreciation in the first 3 years. That’s why, 3 years old electric car would be available at the cheapest price in the market. We have seen many new improvements and advanced features in latest EVs like autonomous parking and better mileage per charge. These advancements in the newer EVs make the older models in lesser demand and that’s why used old electric vehicles are becoming cheaper day by day.

Furthermore, to promote the EV culture, the federal and state governments are also making the EV buyers eligible for tax credit upto $7500 . This tax relaxation, from the total car’s value, is affecting the EV prices to become cheaper.

How Much Do Electric Cars Cost?

Electric cars cost more than gas-powered cars because of expensive technology, lower production and less competition than the ordinary gas-powered cars. This gap between the costs of a hybrid car and electric car has been reducing in recent years; plus, federal and state administrations are supporting the EV culture.

Now in 2022, small Electric cars are cheapest ranging from $27000 - $32000, SUVs are priced around $33000 - $45000. Luxury electric cars are somewhat very expensive starting from $45k.

What Is the Cheapest Electric Car?

Nissan Leaf is the cheapest electric car in small size with a decent range of 149 miles in just $28K . In the 2022 model, safety tech has also been added. It has a quick acceleration ability and it can be handled comfortably. If you are worried about 149 mileage, then you can opt for a better version of leaf plus that assures you a 226 miles on single charge. It would cost you around $40K.

Are Electric Cars More Cost Effective?

Yes! Electric cars are most cost effective as compared to hybrid or gas-powered cars. On average, the fuel cost of an oil car is around $700 per year but the running cost of an electric car on charging is just around $300-$400 per year . Furthemore, electric cars won’t have to deal with the regular oil change and other regular servicing charges. That’s why electric cars are considered cheaper than gas-powered.

Will Electric Cars ever Be Affordable?

Soon! Electric cars will achieve the cheapest price in upcoming years. Many experts are already claiming that 2025 will be that year when most of the electric cars will be readily available in the market in the same price bracket as gas-powered cars. There are many factors that are actually supporting these claims. For example, the battery prices are going down because of massive production and tough competition among the producers. It is a prediction that battery prices will decrease up to 77% around 2025 and there will be some larger production units of EVs after 2025. Once EVs will be produced on a larger level by so many companies, the prices will be much lower than you are expecting now.

Takeaway

Electric vehicles are the future. It is true that the EVs are much more expensive as compared to hybrid cars due to high cost of batteries and advanced technology but their running cost is still cost effective in the long run as compared to fuel charges of hybrid cars. On average, a person can save upto $300 per year by just shifting to an EV from a hybrid car. The first hand EV is much more expensive for the middle class family but surprisingly the used EVs are much more cheap than you can expect. Due to ever evolving technology and better EV models with better mileage per charge, people are always interested in buying the latest EV models and the old used EVs have to face the highest price depreciation. That’s why 2022 is the year of cheapest used electric vehicles. So, it is suggested that you must buy the cheapest used EV in 2022 by consulting the used cars listing in Columbia, Baltimore MD.