After the COVID-19 pandemic, the market for new and pre-owned cars became chaotic, with steep price increases and severe supply shortages peaking in 2022. With some new models taking months to arrive, many drivers turned to the used market — which has also been in short supply.
Simultaneously, Americans have been hit with high gasoline prices amid rising inflation and the ongoing conflict in Ukraine, pushing more people to consider electric vehicles.
In 2023, analysts anticipate supply chain challenges to ease, which should increase dealership inventory. Still, new vehicle prices are likely to remain elevated as inflation persists. Prices for used cars, however, may fall by roughly 10% to 20% this year, J.P. Morgan Research reports.
With a fresh tax credit taking effect in 2023 for pre-owned electric cars, this could be an ideal time to buy a used EV.
New to shopping for a used electric car? We’ve got you covered. Below we outline tips for buying a used EV, list five top used electric models under $20,000 and explain what it costs to operate an EV.
7 Tips for Buying a Pre-Owned Electric Vehicle
How does hunting for a used EV differ from buying a used gas car? The primary concerns are battery health and driving range. Use these seven pointers to help you land a solid purchase:
1. Make a Shortlist of Models — and Move Quickly
The Nissan Leaf was the first mass-produced all-electric car and remains one of the most affordable options more than a decade later. But the used EV landscape now offers many more choices, ranging from upscale options like the BMW i3 and Tesla Model S to practical entries such as the Ford Focus Electric and Volkswagen e-Golf.
Factor in Price
If you’re shopping on a budget, expensive models like the Audi e-tron or Tesla Model S can likely be removed from consideration (though the long-lived BMW i3 sometimes shows up under $15,000). Decide your top price and research used EVs that fit within it.
Budget-friendly options often come from brands such as Nissan, Kia, Hyundai, Chevy and Ford. If you need a quick reference, see our list below of the best used electric cars under $20,000.
Factor in Range
Price is only part of the picture. Consider how you’ll use the vehicle day-to-day. What maximum range will you need for regular driving? Choose an EV in your price bracket that can travel the distance you require on a single charge.
That approach helps you avoid needing frequent charging while out and about.
If you do plan to charge during trips, look for DC (direct current) fast-charging capability, often called Level 3. DC fast chargers juice batteries much faster (in about 30 minutes), though they generally bring a battery up to around 80%, not 100%.
While most modern EVs accept DC fast charging, older models might not. When evaluating early-generation EVs, check for that feature.
Move Quickly
Once you identify a few preferred models, plug them into a car comparison tool to figure out which fits your needs best.
When a suitable vehicle appears at a dealership or in a private listing, act quickly. Cars — new and used — are selling almost as soon as they’re listed. If you delay test-driving and making an offer, another buyer likely won’t wait.
2. Buy From a Dealer
Typically, private sellers offer lower used-car prices, but for used EVs you may want to purchase from a certified dealership even if the sticker is slightly higher.
Why? Beginning this year, the Inflation Reduction Act introduced tax credits for used EV purchases. Buyers who purchase a pre-owned electric vehicle from a qualifying dealer may be eligible for a credit equal to 30% of the sale price (capped at $4,000).
As with any tax incentive, there are many caveats. Consult the IRS guidance to determine whether you and the vehicle meet the requirements. A major limitation is that the credit only applies to used EVs with a sale price below $25,000. According to Recurrent Auto, that represents only about 12% of used EVs on the market.
Note: This tax credit is nonrefundable.
3. Learn the Warranty Details
When the vehicle was new, the manufacturer likely included battery coverage.
Lithium-ion batteries are the most costly part of an EV. To address buyer concerns, automakers frequently offer about eight years (or 100,000 miles) of battery protection. But warranties aren’t always transferable to new owners.
When researching a listed vehicle, ask the seller about warranty status, but it’s best to verify this independently. Get the car’s VIN (vehicle identification number) and contact the manufacturer’s customer service to confirm warranty specifics.
Ask how much warranty time remains and whether the warranty transfers with the sale. If there’s no transferable coverage, be cautious about buying an older EV whose battery may be nearing end of life.
4. Seek Vehicles With Recently Replaced Batteries
Alternatively, especially if you’re looking at high-mileage EVs from the early 2010s, try to find one that recently received a battery replacement. Request receipts and documentation verifying the replacement.
If the seller lacks paperwork but claims the battery was swapped, you can often corroborate the work through a vehicle history report like Carfax.
5. Use Battery Health as Leverage
If the battery lacks warranty coverage and hasn’t been recently replaced, use signs of degradation to negotiate.
Ask the dealer for a complete battery-health report (or check the estimated range after a full charge — most EVs show a range gauge). Compare that expected range to the original EPA or manufacturer-rated range when the model debuted. A big discrepancy is a strong bargaining point.
Keep in mind, though, that bargaining power is limited in this tight used market. If you push too hard for a lower price, the seller might simply wait for another buyer — and there’s probably a line of interested shoppers.
If you do secure a price reduction, remember you may soon face battery replacement costs. Recurrent Auto estimates new EV batteries can range from about $3,000 to over $20,000.
6. Have a Specialist Inspect It
Always take any used car on a test drive and have a trusted mechanic perform a thorough inspection. A mechanic can identify issues the seller didn’t disclose.
This gives you leverage to 1) negotiate a lower price or 2) decline a poor deal.
For an EV, find a mechanic experienced with electric drivetrains. Not every technician has EV training, so narrow your choice to shops with a proven background in electric vehicle maintenance and repair.
7. Think About Hybrids and Plug-In Hybrids
If used pure EVs are out of your budget, you don’t have to abandon the idea of reducing fuel consumption — particularly with gas prices remaining high.
Traditional hybrid vehicles have been mainstream far longer than pure EVs and eliminate range anxiety altogether. They don’t require at-home charging infrastructure, and hybrids are plentiful enough that you can often find one within budget.
Plug-in hybrids are another option: they use electric power first, but a gasoline engine steps in when you need extended range. Typically, used hybrids are cheaper and easier to find than plug-in variants.
Five Best Used Electric Cars Under $20,000
As Recurrent Auto notes, most used EVs still trade above $25,000, meaning many won’t qualify for the used EV tax credit. Whether your goal is to qualify for that credit or simply stick to a tighter budget, you’ll need to focus on earlier-model used EVs to remain under $20K.
Search for models from the early to mid-2010s for the best bargains. Prices will depend on year, battery condition, mileage and other variables, but the models below are commonly regarded as the best used electric cars under $20,000. (You’ll notice no used Tesla appears on this list.)
1. Nissan Leaf
The Nissan Leaf remains one of the top used electric choices. This economy-level EV delivers standard amenities — airbags, power seats and more — in an efficient package.
Because the Leaf has a long production history, supply is ample, which helps keep prices down. We recommend models with higher-capacity batteries (2016 and later) for usable range.
You can typically find used Nissan Leafs in the $10,000 to $15,000 range. Old, early examples may appear below $6,000.
2. Kia Soul EV
The Kia Soul compact crossover became popular for its distinctive design and marketing (remember the dancing hamsters?), and Kia eventually offered an all-electric Soul. Since it’s been available since 2014, you can find Soul EVs listed in the $15,000–$20,000 range.
For that price you’ll get a roomy interior, smartphone integration and modern safety features, particularly on later years (2018 was the final U.S. model year).
3. Chevy Spark EV
The Chevy Spark is a budget-friendly city car that replaced the Aveo in the early 2010s. Its electric variant was sold only briefly and in limited states, so they can be rare.
If you find one and don’t mind minimal creature comforts, you may pay under $15,000 — possibly even under $10,000.
One perk: the Spark often came in playful colors. While many used Spark EVs are white or black, you might find an Electric Blue Metallic or another eye-catching hue.
4. Fiat 500e
Despite a former Fiat CEO’s public skepticism about the model, the Fiat 500e offers stylish Italian design and up to about 87 miles of range (and over 100 miles in city driving situations).
Production numbers were limited, so locating one might be tricky. If you’re fortunate, you could find one for roughly $10,000–$15,000.
5. Volkswagen e-Golf
You might recall the Volkswagen emissions scandal in 2015; while we’d avoid diesel models from that era, the e-Golf is actually a solid choice.
The e-Golf is a hatchback with ample cargo and passenger space — unlike some small EVs that seat just two comfortably, the e-Golf can accommodate five. By 2017 it had an EPA-estimated range of about 125 miles.
The e-Golf was produced as recently as 2019, but those later examples are above our $20,000 target. Look to earlier model years to find one near $15,000.
Honorable Mentions
These EVs didn’t make the main list but are still worth a look for their reasonable prices and decent ranges:
- Kia Niro EV
- Chevrolet Bolt
- Ford Focus Electric
- Hyundai Ioniq EV
- Hyundai Kona Electric
- BMW i3
New vs. Pre-Owned Electric Vehicles
Automakers are heavily investing in electrification. Ford has earmarked $22 billion for electrification in the first half of this decade, GM plans for 30 electric models by 2025, Honda and Toyota each aim to introduce 30 EVs by 2030, and Volkswagen targets 50% electric sales by that year.
The market is poised to be filled with electric cars, trucks and SUVs — you can even buy an electric Mustang! With government incentives like federal tax credits up to $7,500 for new EVs, buying new often makes financial sense.
But not everyone can afford a brand-new Tesla Model S, and even compact EVs like the Nissan Leaf are considerably cheaper used. Additionally, the chip shortage and other supply issues have disproportionately affected new EV deliveries, elevating prices and delaying availability (at one point it took an average of four months to get Volkswagen’s ID.4).
Purchasing a used electric car means paying less overall (EVs often have lower resale values due to lower demand) and typically no waiting period — you can visit a dealer, test drive and drive the car home the same day.
Still, buying a used EV requires slightly different research than a gas car. Arm yourself with knowledge before visiting a dealer or a private seller so you get a fair deal.
How Much Does It Cost to Run an Electric Car?
Electric vehicles can carry higher upfront costs, but do they save money in the long run? Consider these factors when evaluating whether an EV is cost-effective for you:
Tax Incentives
If you buy a new EV, you may qualify for a federal tax credit up to $7,500. Until recently, used EV buyers didn’t have access to a similar benefit.
The Inflation Reduction Act changed that in 2023, creating up to $4,000 in credits for qualifying used electric-car purchases. Due to strict IRS rules, though, experts expect only a small fraction of used EVs to meet the criteria.
Maintenance
EVs typically require far less routine maintenance. Electric cars don’t need oil changes or many other regular services required by gas vehicles, so annual upkeep costs are usually lower.
However, when significant repairs are needed — particularly battery replacement — costs can be much higher than comparable repairs on gas-powered cars.
Charging
While plug-in hybrids still require gasoline, a fully electric vehicle eliminates gasoline purchases entirely.
You’ll likely need to pay to install home charging equipment and will see an uptick in your electricity bills. Still, the cost to charge an EV is generally far less than fueling a gas car for the same mileage. If you want to compare long-term fuel savings, check out guides on the cost of electric cars.
Insurance
Insuring a used vehicle is usually cheaper than insuring a new one, but EVs can be costlier than comparable gas cars.
ValuePenguin reports EV owners may pay about 25% more for insurance because electric vehicles often cost more to buy and repair.
The Bottom Line
Buying a used electric car can deliver significant savings: they’re less expensive than new EVs, can qualify for new used-vehicle tax credits in some cases and typically reduce fuel costs over time.
However, in the current market even used vehicles can command high prices. Make a list of models within your budget, know what to examine during a test drive, and be ready to walk away if the deal doesn’t feel right.
