Buy a used electric car

Hardly anyone buys a car on the spur of the moment, but rather with careful consideration. Especially in times of geopolitical uncertainty and in the face of what is probably the biggest mobility revolution since the invention of the petrol engine: the era of the combustion engine is coming to an end and the future belongs to electric vehicles. However, as brand-new electric vehicles are comparatively expensive, one area is becoming increasingly important: the used car market for electric cars!

But the question arises: is it a good idea to buy a used electric car?

When it comes to buying a second-hand car, in addition to the general tips on used cars for electric cars, there are additional and sometimes even fundamentally different aspects to consider.

As electric vehicles are still expensive and there are long waiting times for new cars, there are good reasons to look around on the second-hand market. Electric cars have been on the roads for several years now and are therefore increasingly finding their way into the used car market. First and foremost, the environmental bonus speaks in favour of a vehicle with an electric drive - regardless of whether it is new or used. And there are other plus points in favour of electric vehicles:

• Fewer wearing parts: Electric cars run with far fewer wearing parts than combustion engines. For example, they do not need timing belts, spark plugs, manual gearboxes or exhausts. And what is missing cannot break down and therefore cannot cause any costs.
• Lower maintenance costs: As operating fluids such as engine oil, coolant and transmission oil are also no longer required, inspection and maintenance costs are lower than for conventional vehicles with a combustion engine.
• Tax advantage: The exemption from vehicle tax is transferred to the buyer of a used electric car. It applies for a maximum of ten years after initial registration, but until 31 December 2030 at the latest.
• Favourable drive: Electricity still costs less than petrol. However, depending on the manufacturer and model, charging at electric charging stations, especially fast-charging stations, can even be more expensive than a comparable tank of fossil fuels in some cases.

A second-hand electric vehicle not only offers the same environmental benefits as a brand new electric car, but also supports the sustainability aspect. The longer an e-vehicle is on the road, the greater the positive impact on the environment. Researchers at the Fraunhofer Institute have calculated the point at which an e-car has a positiveCO2 balance compared to a combustion engine:

• from 51,000 kilometres compared to a petrol car*.
• from around 55,000 kilometres compared to a diesel*.
• From 20,000 kilometres if only renewable energies are used for charging.

* when charging with the German electricity mix

The advantages of a used electric car are obvious. But what do prospective buyers need to bear in mind when making a purchase to ensure that the driving pleasure remains safe and long-lasting?

The range requirements are individual. This question is therefore crucial before buying a second-hand electric car. If you only need the vehicle for short city journeys, a car with a lower SoH value and therefore a reduced range may be sufficient. However, if you want to take the e-car on holiday or if longer journeys are planned on a regular basis, a high SoH value is a must, although the average charging capacity that can be achieved should also be taken into account. This is because there are also considerable differences in charging times.

Even experts cannot accurately assess the condition of a battery by visual inspection alone. Philipp Wollenweber from TÜV NORD explains the process and the important aspects:

• Battery test: In the past, the SoH of a battery could only be estimated using the manufacturer's own equipment. However, independent testing systems are becoming increasingly accurate and popular. These systems not only record the current values of the high-voltage battery, but also the battery history and user behaviour in order to reliably determine the SoH. TÜV NORD offers such tests in co-operation with a partner, and the increasing collection of comparative data means that these tests are becoming ever more meaningful.
• Certificate: TÜV NORD enables retailers to test the entire high-voltage system of an electric car. In addition to the SoH value, the causes of battery wear can also be determined, as faults in the electronics can also lead to reduced battery performance or higher consumption. Dealers receive a test report that they can present at the time of sale.
• Don't forget: The actual range in operation is a factor that is often overlooked. Driving style and traffic conditions can affect range, and low temperatures pose a particular challenge in winter as they can reduce range by 30 to 40 per cent. This aspect should be taken into account when making a purchase decision.

The brakes of electric cars can be problematic, as defects are often found during general inspections. This is due to recuperation, which recovers kinetic energy during braking and reduces the load on conventional brakes. This can reduce the friction coefficient of the brake pads and cause rust. Drivers of electric cars should therefore regularly brake hard to heat up the brake system and avoid such problems. When buying a used electric car, it is important to check the brakes carefully, as a new set can be expensive.

Since 2020, there have also been subsidies for used electric vehicles. However, with many restrictions and only until the end of 2024:

• The vehicle must not have received a subsidy from the German government's environmental bonus or any other government subsidy in an EU country when it is first registered.
• The model must be on the list of eligible vehicles of the Federal Office of Economics and Export Control (BAFA).
• Particularly high-priced models are excluded. Note: For used cars, 80 per cent of the list price (new car) minus the gross manufacturer's share is applied.
• The vehicle may have changed hands several times, but the first registration must not date back more than one year.
• At the time of registration in the applicant's name, the vehicle must not have demonstrably travelled more than 15,000 kilometres.
• The subsidy does not apply to purchase contracts between private individuals.
• From September 2023, only private buyers will be eligible for the subsidy.

Wallboxes for the home are currently (July 2023) no longer subsidised nationwide by the KfW (Kreditanstalt für Wiederaufbau). However, some federal states and local authorities do offer support. It may therefore be worth researching this.

In addition, owners of electric vehicles can earn several hundred euros a year with the greenhouse gas reduction quota (GHG) bonus. It is a reward for the fact that electric vehicles do not emit anyCO2 into the environment locally. Although the bonus decreases year on year in line with the improving energy mix, it is to be paid out until at least 2030. 

The greenhouse gas reduction quota (GHG quota) is a climate protection instrument of the German government to gradually reduce greenhouse gas emissions in the transport sector. Since 2022, private households, businesses and fleet operators have also been able to apply to the Federal Environment Agency for the GHG quota.

Until now, used electric cars were rather rare and expensive compared to vehicles with combustion engines. Although the supply is still limited, the market is changing. In the coming months, more leased cars will enter the market. On the other hand, electric cars are likely to be increasingly offered from private ownership, as the average holding period for passenger cars in Germany is around ten years and electric vehicles have stepped out of their niche since around 2012.

Stronger new car sales are also always a positive signal for the corresponding remarketing of the existing fleet.

Electric cars are currently losing value faster than vehicles with combustion engines. The reasons for this are the rapid technical development and the reduction or cancellation of state environmental bonuses. In addition, many buyers are unsure due to insufficient information on battery health. However, with the availability of increasingly accurate data to determine the condition of the vehicle, the determination of residual value is becoming more precise, which offers buyers more certainty and could have a positive impact on the performance of used electric vehicles.

Industry experts expect that the prices of electric cars could approach the prices of combustion engines in some segments by 2025. However, predictions are difficult due to the dynamic market situation, as new technologies, EU decisions such as the possible phase-out of combustion engines or scandals such as the diesel scandal can have an unpredictable impact on prices at any time.