Why Buying A 3-Year-Old EV Is A Smart Financial Move

When it comes to buying a used car, one must first consider their needs, as well as their budget. This sometimes leads to buyers sacrificing one for the other, though if you’re looking to buy a used electric vehicle right now, there’s a good chance you won’t be sacrificing anything. This is due to many factors, chief among them being depreciation and vast competition.

Regardless of what the exact cause is for the discounted electric models, buyers can reap the rewards like never before. This fact becomes more compelling when we consider the modern, sometimes luxury appointments that many contemporary EVs feature. From top-shelf luxury SUVs to sporty crossovers, here’s why buying a slightly older EV could save you thousands.

In order to give you the most up-to-date and accurate information possible, the data used to compile this article was sourced from various manufacturer websites and other authoritative sources, including KBB, CarEdge, RepairPal, Consumer Reports, and J.D. Power.

EVs Depreciate More Than Other Models

While not all EVs are prone to rapid depreciation, the overall market figures report that EVs, as a whole, depreciate the fastest out of other vehicle types, including standard hybrid, gas-powered, and plug-in hybrids. This is due to many factors, though the biggest hit can be contributed to the traditional gas-powered and hybrid markets’ influence compared to the up-and-coming EV technology. Simply put, the mainstream isn’t quite ready to give up the gas for good.

Unfortunately for EV value retention, this means losing star power early on, what some may call the “honeymoon” phase. Another factor that has a hand in chopping the MSRP in half is just that: the starting MSRP. On average, an EV’s starting MSRP is nearly $10,000 more than the average cost of a new car. That, paired with the precarious market stance at any given moment, makes for a quick and bumpy tumble down in value. The vehicle class that takes the hardest tumble is the luxury EV arena, which not only has to battle historic luxury depreciation rates, but also the uneasy footing that EVs are on right now.

Studies Find EVs And PHEVs Struggle To Hold Value

Research published in April 2024 by George Washington University regarding vehicle value retention and resale value found that older EVs and PHEVs with less driving range depreciate faster than any other vehicle type. The study went on to reveal that newer EVs and PHEVs with more range are holding their value almost as well as modern hybrids and gas-powered vehicles.

This is a clear example of fast-moving technology, and how today’s advancements are tomorrow’s relics. In other words, the advanced EVs of 2024 and 2025 are causing the slightly older EVs of 2021 and 2022 to lose value fast due to their “outdated” range figures. It should also be noted that the study found that old battery-electric Tesla models hold their value well compared to other old EVs – maybe due to their early-model collectible value.

The Warranty Integrity Of A 3-Year-Old EV

Many slightly-used models still have a solid warranty intact, which eases some of the pressure that comes from EV reliability – a green flag for many buyers on the fence. One of the more universal reasons is that modern tech and convenience are often standard, and sometimes taken to a higher level for EVs thanks to their overall futuristic demeanor. So, we’ve got heavy discounts, low mileage, contemporary tech and convenience, and worry-free warranty and CPO availability. Many warranties cover nearly all aspects of the EV, so buyers are left with a better outcome, should any range of failures occur.

EV Price Ranges And Best Bargains

Those familiar with the EV landscape are well aware of the Mustang Mach-E, a sporty crossover that, allegedly, builds on the Mustang’s sports car aura to channel an electric SUV that can deliver the same heart-pounding ability the American muscle car is known for. While many will argue that it failed miserably, there are plenty of statistics that say otherwise, including impressive road ability and acceleration, aggressive styling inside and out, and, of course, ample Mustang pony design callbacks.

2022 Ford Mustang Mach-E Specs

According to iSeeCars, the Mustang Mach-E is expected to depreciate by up to 47.7-percent after three years of ownership, and 63.5-percent after five years. While that sounds drastic for a used car under any circumstances, some new 2022 Mustang Mach-E models are sitting on lots right now with a $27,000 mark-down, according to CarEdge. This is, again, thanks to the fast-moving EV technology, which sees the new Mach-E models aging the slightly older models.

That said, the 2025 Mustang Mach-E recently arrived with a lower MSRP than the 2024 model year – possibly to attract more bargain hunters or simply capture sales. Either way, the Mach-E should be considered for those who appreciate practicality and fun.

Slightly-Used Luxury

As mentioned before, luxury vehicles experience faster depreciation compared to mainstream models. This is thanks to factors such as high starting MSRP, expensive maintenance, and overall expensive cost-to-own. This is heightened when we speak of luxury EVs, especially 3-year-old examples.

The Mercedes-Benz EQS has a starting MSRP of over $100,000, though it can lose up to 47.8% of its value after the first year. The BMW i7 is another good example of how buying a slightly used example can save literally thousands, considering its estimated value loss comes in at 62.3-percent after three years of ownership.

Mainstream Names That Bring The Bargains

While luxury and sport EVs deliver solid deals, there are many average models that are more budget-friendly. To name a few, the Nissan Leaf, Kia EV6, Hyundai Ioniq 5, and the Volkswagen ID.4. While known for holding its value very well, the Toyota Prius is always a great used option, with three-year-old models averaging around $21,000 on the used market. Other affordable, non-prius options include the Hyundai Kona EV and Mazda MX-30, both of which can price under $25,000 on the used market.

iSeeCars ‘Best Cars To Buy Lightly Used (EVs Only)

EV Reliability Is Often An Issue

Not all EVs are unreliable, though the less-than-dependable stigma behind them as a whole has held them back in terms of attracting new buyers, and for valid reasons. The biggest factors regarding reliability are the lack of industry knowledge when it comes to repairs, as well as the lack of owner knowledge as to the proper upkeep of an EV. This often results in excessive repair shop bills and ongoing issues throughout ownership.

That said, models like the Prius, Nissan Leaf, Hyundai Ioniq 6, and the BMW i4 – the latter of the three earning top marks from Consumer Reports for EV reliability – all display a steadfast quality that, if cared for, should prove to be solid picks. While some EVs may have lost their CR Recommendation badge in recent years, including the Kia EV6, there are plenty of models that deliver solid reliability stats. Models with average reliability, according to Consumer Reports, include:

• Ford Mustang Mach-E
• Hyundai Ioniq 6
• Kia EV9
• Kia Niro EV
• Nissan Ariya
• Nissan Leaf
• Tesla Model 3
• Tesla Model Y

Always Consult A Professional When Buying Used

As discussed, many EVs have a track record of unreliability, which simply means to do your research before investing. Many are swooned by the tech-y appearance and sleek cabin features, though it’s the machinery and components, the build quality, and the reliability history that really determine the value of a used vehicle. This is especially relevant when discussing EVs, as the new technology is constantly being updated and revised to be better than before, and the industry moves fast. Checking with a professional, preferably someone educated in EVs in this case, can be the deciding factor if you’re thinking about going electric.