Are Second Hand Electric Cars Worth Buying in 2025?

Are Second Hand Electric Cars Worth Buying in New Zealand?

Are second hand electric cars worth buying?

With public EV charging infrastructure lagging, it raises significant concerns about the practicality of owning an EV. Meanwhile, potential maintenance costs for aged batteries could quickly outweigh any initial savings from buying preowned.

Yet, with the government aiming to have 64,000 EVs on the roads by 2025, the push for electric cars seems hard to ignore. Awareness around climate change and fuel savings are also strong incentives for considering an EV.

Understanding the Market for Second Hand EVs

The second-hand EV market is evolving rapidly.

In New Zealand, the market for preowned EVs is still relatively new. The PHEV and BEV segments have grown as more consumers consider greener alternatives to traditional vehicles. Import preowned EVs are popular due to their lower price points and New Zealand's import-friendly policies. However, finding spare parts and service expertise remains a challenge.

A significant factor is battery life.

Batteries often determine resale value – as EVs age, their battery capacity decreases, potentially reducing their efficiency and range. This means buyers need to be vigilant about the health and performance of the battery when purchasing a preowned EV.

With new technology bypassing older models, second-hand EV prices may continue to drop. Failed charging infrastructure expansion and uncertainty in charging solutions contribute to skepticism. By 2023, cautiousness has persisted despite growing environmental awareness, due to unaddressed challenges and ongoing debates about the viability of extensive EV adoption in New Zealand.

Benefits of Preowned Electric Vehicles

Preowned electric vehicles (EVs) offer several advantages for budget-conscious drivers who seek sustainability in transport, giving them access to future technology without breaking the bank.

The prices of preowned EVs are significantly lower compared to new models.

Despite potential battery degradation, many second-hand EVs still provide plenty of life, offering a range of 100 to 200 kilometres per charge, which suffices for most daily commutes.

Buying a second-hand EV could mean reduced running costs, as the expense to "fuel" an EV is just a fraction of that for petrol vehicles, leading to savings over time. Additionally, maintenance typically tends to be "lighter" on electric engines due to fewer moving parts, contributing to lower overall upkeep expenses.

Cost Savings with Used EVs

Buying a preowned EV might initially seem costly, but a deeper dive into expenses shows otherwise. Though the upfront cost may not always be dirt cheap, the long-term savings on fuel and maintenance can balance this out significantly.

In New Zealand, electricity costs hover around 30 cents per kWh compared to petrol prices often sitting above $2.50 per litre. This price difference implies that fueling an EV is notably cheaper. Moreover, maintenance for EVs usually requires less frequent attention, thanks to their simpler mechanics — no oil changes and fewer parts that wear and tear. Over time, these factors can lead to substantial savings, making a used EV an economical choice for the environmentally conscious driver.

Lower Purchase Price

Going for a second hand electric car can seriously slice down those initial expenses. Unlike brand new EVs, preowned ones come with a much lower sticker price.

This affordability can provide a tempting introduction to the world of electric vehicles, especially for first-time EV owners. Plus, with the slower depreciation rate of EVs over the years, it often means more bang for your buck.

On average, used electric cars depreciate slower, offering excellent value for money.

Despite the lower initial cost, it's essential to weigh up hidden factors, such as battery life and warranty conditions. While buying a preowned EV, investigating the vehicle's history, like how many fast charges it's endured, could offer insights into its longevity. Be sure to do your homework before sealing the deal.

Reduced Maintenance Costs

One thing people rave about is the reduced maintenance costs of EVs.

Since 2016, a New Zealand study found that electric vehicles, on average, cost about 23% less to maintain compared to their petrol-powered counterparts, largely due to fewer moving parts.

So, it's no wonder these cars often don't require as much regular servicing as petrol engines. The absence of components like a traditional combustion engine, with its pistons and spark plugs, eliminates many potential issues.

Owners can expect to pay less on average for services, which is a big win since maintenance isn't just about the engine—brakes also last longer due to regenerative braking technology, and the rest is pretty much software updates.

In conclusion, used electric vehicles can offer some serious savings in maintenance across the board.

Evaluating the Battery Life of Used EVs

When considering second-hand electric cars, battery life is one crucial factor you cannot overlook.

The battery, an EV's beating heart, has a finite lifespan generally lasting around 8-10 years, depending on usage. New Zealand’s climate can also play a role in battery degradation, with more temperate areas potentially offering a longer battery life compared to harsher climates. It’s estimated that an EV battery might lose about 2.3% of its capacity per year, so a car that’s five years old could potentially have around 88% of its original range.

Naturally, this loss impacts how far you can travel on a single charge. As EV's mileage accumulates, the battery's ability to hold charge decreases, which might mean increased charging stops and some loss of utility for daily commutes or longer road trips.

Therefore, scrutinising battery reports for any visible wear, degradation, and past charging habits is pivotal before buying. New Zealand buyers can often access these insights through dealership checks or by monitoring the vehicle's onboard diagnostics system. But remember, replacing batteries can be costly and might wipe out the savings of a second-hand purchase.

Depreciation Rates of Electric Vehicles

In New Zealand, electric vehicles (EVs) tend to depreciate faster than traditional petrol cars. This is primarily due to concerns about battery longevity and technological advancements, which can make older models less appealing.

The rate of depreciation can be higher for models from lesser-known brands. This is because these brands may lack the reputation or reliability that buyers look for in long-term investments.

Electric vehicles, on average, lose about 50% of their value within the first three years. For comparison, petrol cars typically lose around 30% in the same period. This rapid depreciation can be a significant consideration for buyers looking to preserve value.

While this may present an opportunity to snag a good deal initially, potential buyers should be cautious. Technology and battery advancements mean older EV models might not offer the same range or features as new ones. So, when asking, "are second hand electric cars worth buying," consider future resale value alongside immediate savings.

Availability of Charging Infrastructure

When considering a second-hand electric car in New Zealand, charging infrastructure is a crucial factor.

Currently, the charging infrastructure is a work in progress across the country. While urban areas like Auckland and Wellington are catching up, deploying charging stations on a large scale remains a significant challenge in rural towns. The scattered placement of chargers often leaves EV owners facing the 'range anxiety' dilemma, worried about running out of power without a nearby charging option.

Interestingly, there are about 450 public charging stations in New Zealand. This might sound decent, but when you compare it with the size and spread of its population, it's clear more is needed, especially if EV numbers on the road continue to rise.

For those considering a second-hand EV, it's essential to research local charging spots and future infrastructure developments. Recent announcements from government bodies suggest plans for expanding the network, but until these are realised, potential EV buyers need to weigh the convenience of petrol cars against the eco-friendly allure of an electric counterpart.

Environmental Impact of Preowned EVs

Buying a preowned electric vehicle (EV) can dramatically lower your environmental footprint. When you opt for a second-hand EV, you're avoiding the emissions associated with manufacturing new cars.

This is particularly significant given the considerable carbon emissions from producing a new vehicle.

Interestingly, driving an EV generally halves total greenhouse gas emissions compared to a petrol vehicle over their lifetime.

Additionally, the battery production for EVs presents environmental challenges, which are mitigated by extending the battery's useful lifespan through preowned purchases.

The transition to EVs is also pivotal in New Zealand's goal to achieve net-zero emissions by 2050. Driving an EV helps by cutting down emissions from road transport, which accounted for about 19% of New Zealand's total emissions in 2020.

In essence, even a preowned EV makes a difference. However, the environmental benefits hinge on New Zealand's electricity generation sources remaining clean and sustainable.

Comparing Models and Features in Used EVs

When diving into the world of second-hand electric cars, it's essential to assess the models and features available.

In 2016, Tesla introduced a variety of models that have since become popular in the second-hand market. These include the Model S, known for its advanced tech features and impressive range, offering up to 370 miles on a single charge.

However, it's not all about Tesla. Brands like Nissan and their Leaf model provide reliable performance and affordability. The Leaf is New Zealand's most popular second-hand EV, known for a range of around 150 km per charge in earlier models and up to 385 km in newer ones.

Keep an eye out for bonuses like heated seats, adaptive cruise control, and smartphone connectivity. While earlier EV models might lack some modern features, they're still a great choice for those wanting to dip their toes into the EV world without splurging.

Ultimately, choosing a model depends on your lifestyle needs and budget, as well as the availability of charging options relevant to your routine.

Assessing Long-Term Reliability

When thinking about second hand electric cars, long-term reliability is a significant concern. Battery life plays a huge role when evaluating whether these vehicles are worth buying.

EV batteries degrade over time, and replacement costs are alarmingly steep. Commonly, the lifespan of a battery is around 8 to 10 years based on current tech advancements and manufacturer guarantees.

Considering EVs like the Nissan Leaf, reports suggest noticeable battery capacity loss beyond five years of regular use. Other components, such as the electric motor, are generally more reliable due to fewer moving parts compared to combustion engines.

For those looking at buying used, a thorough check of the battery condition is essential. Get a detailed report on its "state of health" to understand how much life expectancy remains. Warranty on the battery may still apply, which can relieve some concerns about future expenses.

Warranty and Support Options for Used EVs

Getting warranty for secondhand EVs isn't easy.

While new EVs often come with robust warranties, secondhand buyers may find limited or no coverage. EV batteries may have a warranty extension beyond the original term, usually covering up to eight years or 160,000 kilometres. However, transferability of these warranties to subsequent owners can vary by manufacturer.

That's where certified pre-owned programmes help.

These programmes can offer added warranties but at a higher cost, depending on the certification standards of the dealer – which often includes detailed inspections and repairs.

In New Zealand, the warranty market is still evolving, and finding comprehensive coverage can be a challenge. As the market continues to grow, industry experts predict that more affordable options and aftermarket warranties could become available, making secondhand electric cars a safer bet.

Financing Options for Second Hand Electric Cars

Financing a used EV is easier than ever.

Various lenders have jumped on the green bandwagon. They now offer options for those looking to finance secondhand electric vehicles, making it an increasingly viable venture for many Kiwis. Interestingly, some banks will even extend the same enticing interest rates that they reserve for brand new models. This helps bridge the gap between aspiration and affordability, bringing sustainable driving within reach for more people.

Leasing is becoming another popular choice.

Used EVs might also be eligible for - not the same bells and whistles as a fresh release - but still substantial financing perks that make long-term ownership less daunting. It pays to research and haggle local banks and non-banking financial companies.

New Zealand has seen growing initiatives from financial institutions offering eco-friendly car loans with competitive interest rates. As of October 2023, some lenders even include extra perks like flexible repayment terms. With financial support tailored for environmentally conscious buyers, offsetting potential downsides of a secondhand purchase becomes less formidable.

Inspecting and Testing Preowned EVs

Before sealing the deal on a second-hand electric vehicle, thorough inspection and testing are pivotal, and there are several factors to consider.

Check the battery health, as battery replacement can cost thousands of dollars.

A certified mechanic should evaluate the battery condition, electrical systems, brake systems, and any signs of a compromised body frame. Look for proper service documentation as well, confirming regular software updates and scheduled maintenance.

Don't underestimate the importance of a test drive. A good rule of thumb is to experience multiple driving conditions, such as uphill and city driving, to gauge the car's efficiency. Also, consider using a diagnostic app or device to 'read' the vehicle's onboard computer system. This can reveal "secret" issues undetected by casual examination.

Importance of Vehicle History Reports

Vehicle history reports are crucial when considering purchasing a second-hand electric car in New Zealand. They provide valuable data for informed decisions.

These reports can include previous ownership details, accident history, and any recorded recalls. Such information is essential.

Knowing a car’s past can help avoid significant issues, especially with expensive EV components. This helps ensure peace of mind for the buyer by clarifying potential risks.

Without this insight, there’s a risk of ending up with a "lemon" that could become a financial nightmare. By thoroughly examining these reports, a buyer can identify warning signs that might lead to costly repairs or reduced efficiency. Hence, spending a bit on a vehicle history report can save you heaps in the long run.

Where to Buy Second Hand EVs in New Zealand

Finding second-hand electric vehicles in New Zealand isn't too hard, thanks to online marketplaces, car dealers, and auction sites. Trade Me, a popular all-in-one marketplace down here, features a healthy selection of preowned EVs.

Other specialised dealerships, known for their extensive preowned EV inventories, also have great options available.

Aj motor, New Zealand's largest used car dealer, is a name to remember. They've got a dedicated section for electric vehicles, making browsing much easier.

Online classifieds can list everything from the latest models to older ones, plus a few with unique features. Checking local forums might lead you to some hidden gems as well.

The New Zealand EV Owners Facebook group is also a fantastic resource, featuring EV enthusiasts who often know where to get good deals on preowned electric vehicles. Many buyers and sellers share tips and experiences, too.

Finally, if you're keen on auctions, there's always a chance you’ll find something special. Keep an eye on government auctions; they occasionally feature EVs that are well-maintained but come at discounted prices.

Are Second Hand Electric Cars Worth Buying?

Buying a second-hand electric vehicle (EV) in New Zealand really depends on a bunch of factors.

Firstly, the condition of the battery is a biggie. EV batteries degrade over time, much like your phone's battery. Some second-hand EVs might have already knocked up a few years, so you'd want to check how much juice they’re still packing. A well-cared-for battery could still have plenty of life left, but replacements can be super pricey.

Additionally, you should think about the model's features and whether you can find parts easily. EV technology is rapidly changing, which means older models might lack the bells and whistles of newer ones. Add that to the fact that sourcing parts for some models could be tricky in New Zealand.

Lastly, consider the savings. While second-hand EVs might save you money upfront and on petrol costs, you might have to fork out more on servicing compared to traditional cars. Assess your budget carefully to decide if the eco-friendly and potentially cheaper running costs outweigh the hurdles of limited charging infrastructure and possible maintenance issues.

Common Misconceptions About Used EVs

Many people assume that all second-hand electric vehicles (EVs) carry poor battery life, but that's not always the case. Batteries can be surprisingly resilient with the right care.

A common belief is that used EVs can’t cover long distances.

Interestingly, most EVs actually offer a practical range for everyday use, even when they're a few years old.

Fears over expensive battery replacements often deter buyers, yet many used EVs still operate efficiently on their original battery.

In New Zealand, it's a widespread belief that charging infrastructure is inadequate, which fuels the misconception that EVs aren't practical for long trips. However, many drivers find that home charging suits their needs.

Ultimately, it’s not that used EVs aren’t worth it. These misconceptions can peddle the false notion that preowned EVs won't meet everyday transportation needs.

Future Trends in the Preowned EV Market

The preowned EV market in New Zealand is expected to grow significantly as awareness of climate change and fuel cost savings increases.

Government incentives will likely spur further growth, encouraging more people to consider second-hand EVs.

There's a continuous trend of automakers launching newer models, which leads to a cycle of newer used vehicles entering the market. This makes preowned EVs more attractive, affordable, and accessible to a broader audience.

Emerging technologies like battery swapping could change the game for second-hand EVs. It could make them even more worth buying, as it addresses concerns about battery life and charging infrastructure. So while second-hand EVs may seem daunting now, they could soon be "no-brainer" choices for savvy Kiwi buyers.