Here’s Why Buying A 3-Year-Old EV Makes More Sense Than Leasing a New One

Electric vehicles are now available from some of the largest automakers in America. There are great leasing options on brand-new EVs that can be hard to pass up. Some models even lease for cheaper than their internal combustion engine counterparts.

Since some electric vehicle nameplates already have a few model years behind them, you can find great used EV deals as well. Depreciation makes some of the best electric vehicles from companies like Tesla, Hyundai, and BMW attainable. Buying a three-year-old EV instead of leasing a brand-new model could be a better choice for several reasons. Ultimately, it comes down to affordability and longevity.

In order to give you the most up-to-date and accurate information possible, the data used to compile this article was sourced from Tesla, Hyundai, and other authoritative sources.

Three-Year-Old EVs Can Be Had At A Lucrative Depreciated Price

Electric vehicles are significantly more expensive than internal combustion engines and hybrid vehicles. Many popular new EVs have starting prices above $40,000. Electric vehicles like the Tesla Model 3 and Hyundai Ioniq 5 may offer great value, but they don’t come cheap as new models. Used models, on the other hand, can be found at incredibly affordable prices.

EVs tend to depreciate quicker than other types of vehicles. Some of the most popular models can lose over 30-percent of their original MSRP in three years or less. The 2022 Tesla Model 3 has an original starting MSRP of $43,440. According to Kelley Blue Book, it has a fair purchase price of $24,954. So, the Model 3 has depreciated by over 40-percent in the last three years. That’s a huge depreciation rate for a three-year-old vehicle, making it a steal for many drivers. The Model 3 is one of the most popular electric sedans in the world, and thanks to depreciation, it’s affordable enough for most consumers as a used model.

The Hyundai Ioniq 5 is one of the best small electric SUVs for the money. It’s practical and comes with plenty of standard features. The 2022 Ioniq 5 has an original MSRP of $41,245. Kelley Blue Book claims that the 2022 Ioniq 5 has a fair purchase price of $22,077. That’s a depreciation rate of over 40-percent as well. The Ioniq 5 is known for its simplicity and pleasant driving dynamics.

There Are Used Electric Vehicle Incentives Worth Thousands

If you’re interested in a used electric vehicle, there are plenty of financial incentives to make the process easier. You can get as much as $4,000 off the purchase of your used EV with the used electric vehicle federal tax credit. There are also additional local incentives depending on where you live. Some states offer hundreds of dollars in electric vehicle incentives in an effort to reduce the overall carbon footprint. So, you can save even more money on the purchase of a three-year-old electric vehicle. These incentives make used electric vehicles even more desirable when combined with depreciation. Furthermore, they may not exist in the years to come as mass adoption is becoming more realistic.

Best Three-Year-Old EVs To Buy Used

If you’re looking for an affordable three-year-old electric vehicle, the 2022 Chevrolet Bolt EUV is one of the best choices for the money. It had a low original MSRP to begin with and depreciation has made it even more affordable. The EUV electric subcompact SUV produces decent power for its size and has adequate driving range for most drivers. The Bolt EUV is perfect for folks with a short commute who live near a reliable charging station. You can also get a home charging station installed to have an easier ownership experience. Chevy’s Bolt EUV nameplate may not exist anymore as a new model, but you can still enjoy it as a used model.

2022 Chevrolet Bolt EUV Standard Features

• Wireless Apple CarPlay/wireless Android Auto
• Wireless device charging
• Forward automatic emergency braking
• Voice recognition
• Remote keyless entry
• Push-button start
• Pedestrian detection

Another great three-year-old EV to buy used is the 2022 Volkswagen ID.4. It has depreciated greatly in just a few years and has an incredible driving range. The ID.4 produces nearly as much power as the average internal combustion engine Toyota RAV4. It’s a practical small family SUV that competes against popular EVs like the Tesla Model Y. The small electric SUV also comes with a long list of standard safety and driver-assistance features. With a Kelley Blue Book fair purchase price of less than $20,000, it’s easily one of the best used small family SUVs that you can get today.

2022 Volkswagen ID. 4 Standard Features

• Apple CarPlay/Android Auto
• Blind-spot monitoring
• Adaptive cruise control
• Forward collision warning
• 10-color ambient interior lighting
• Heated leather-wrapped steering wheel
• Proximity keyless entry

Three-Year-Old EV Prices vs. New EV Lease Costs

Now that we’ve established why some three-year-old EVs offer amazing value, how do their prices stack up to the cost of leasing a brand-new EV? According to Tesla’s website, you can lease a new Model 3 for $295 a month for 36 months (15,000 annual miles) with a down payment of $2,999. That’s a true cost of around $378.30 a month for three years with a new Tesla Model 3.

In comparison, getting a 2022 Tesla Model 3 for around $25,000 and keeping it for the average vehicle ownership length (12.5 years according to the National Automobile Dealers Association), is akin to an ownership cost of just $166.67 a month excluding insurance and maintenance.

So, if you’re interested in an average ownership period, getting a three-year-old Tesla Model 3 is a much better deal. If you’re interested in a short ownership period, leasing could be worth looking into. Leasing is attractive to folks who regularly like to drive brand-new vehicles, but that privilege comes at a hefty price compared to owning a vehicle throughout its most severe years of depreciation.

Why Long-Term EV Ownership Is Lucrative

Electric vehicles are so new to the industry that even experts aren’t fully aware of longevity capabilities. Simply put, the average driver hasn’t had enough time to put serious miles on popular electric vehicles. That said, there are reports of Tesla Model 3 electric sedans that have racked up miles without any serious mechanical issues.

EVs like the Tesla Model 3 don’t need the same kind of maintenance that internal combustion engine vehicles require, like oil changes. There are ways to ensure that you get the most longevity out of your electric vehicle as well.

Electric Vehicle Longevity Tips

• Avoid fully charging or depleting the vehicle’s battery
• Don’t rely on regular fast-charging
• Steer clear of extreme hot and cold temperatures when possible

Long-term EV ownership is lucrative because electric vehicles could have the potential to last for decades. They may outlast some of the most reliable ICE vehicles, so there’s a huge upside to seeing just how long your electric vehicle can last. If you can outlast the average ownership period, you can save thousands of dollars. EV charging infrastructure is likely to improve as electric vehicles become more popular. Charging should also become more affordable when it’s more available, making electric vehicles an even better deal. Investing in a used EV is betting on the electric future as a driver.

The Used EV Market Has Never Been Better

Just a few years ago, there weren’t many affordable used vehicles to choose from. Today, there are plenty of options, since brands like Hyundai, Kia, Volkswagen, and more have been producing popular electric vehicle nameplates. There are more options than ever before and depreciation is truly on the side of the consumer.

Some of the best electric vehicles of 2022 have depreciated by over 30-percent in just a few years. Even pricey models like the 2022 BMW iX have become affordable due to depreciation. The 2022 iX has an original MSRP of a whopping $84,195 and a KBB typical listing price of just $43,948. If you’re aware of the fair market value of three-year-old EVs, you can score an amazing EV for a fraction of its original MSRP.

Getting a new vehicle is thrilling, but rarely the best choice for a driver looking to save money. Many used EVs come standard with the best tech that the automotive industry has to offer. Since 2022 was such a strong year for electric vehicles, now may be the perfect time to consider getting a three-year-old EV.