Did you know that there are approximately 180,000 electric vehicles on the road in Australia currently, and about 50% of them were purchased last year?
While this represents just a small percentage of the overall number of cars owned by Aussie residents, this significant increase in sales reflects an expected growth trend in the years to come.
Indeed, according to predictions from Energeia made in their recent Australian Electric Vehicle Market Study, EVs are expected to hit 50% of all new car sales in 2030 and comprise over 90% of the national car fleet by 2050.
Clearly, there is a bit of a way to go for this to happen. But as more people make the switch from petrol and diesel to electric cars, it leads others to wonder what type of vehicle they should buy next.
Ultimately, this will depend on a range of factors pertaining to your personal situation. But all things considered, here is why second-hand electric vehicles might represent better value overall.
- Cheaper to buy
The most obvious reason to buy a second-hand electric vehicle is that it is generally cheaper to purchase than a brand-new model in its class.
This applies to petrol, diesel, and electric vehicles, though it depends on several factors, including the age, condition, mileage, and make of the vehicle.
However, there is no denying that the simple act of buying a second-hand electric car can save you thousands of dollars on the asking price. Furthermore, by 2030, the pool of second-hand electric cars to choose from is likely quite substantial.
- Cheaper to run
One of the main plus points of an electric car over a diesel or petrol internal combustion engine is that they are about 70% cheaper to power overall.
According to the Electric Vehicle Council, the average Aussie will save around $1600 a year on fuel costs, primarily because the cost of EV charging stations is much less expensive than petrol at the bowser.
To put this into context, they estimate that charging an EV costs a mere 0.33c per litre, while an internal combustion engine vehicle sets you back about $1.50 on average.
Moreover, as the price of petrol has recently hit as much as $2.30+ per litre in many parts of Australia, this discrepancy is primed to get wider—not least because Jolt and NRMA are offering fast electric charging for free at numerous locations.
Additionally, if you live in a property with solar panels, you are able, for all intents and purposes, to power your vehicle for free, which is a big win.
- Slower Depreciation
Cars depreciate in worth more in the first 3 to 5 years of ownership than at any other time. Therefore, by the time one reaches the second-owner stage, it has already lost most of its resale value.
With costs of living pressures being a major motivator for buying an EV, if you don’t intend to sell the car for a while, purchasing a second-hand EV (or petrol car) is a smart choice because you are protecting yourself from further significant financial losses. This makes it a less risky purchase overall.
- Battery Life
You might not be aware of this, but for electric vehicles, all automakers offer a warranty of at least eight years or 100,000 miles on their EV battery packs.
This compares slightly better with petrol cars, whose manufacturers tend to offer a 3—to 7-year warranty. However, the main difference is that, unlike with petrol cars, most, if not all, will replace the battery for free if it falls below a certain percentage of capacity during that time.
For Tesla, this figure is 70%, which means it’s worth getting it checked just before the warranty runs out. You might end up getting a new one installed that will last you another 8 years.
By contrast, if your internal combustion engine starts to degrade, you’ll have to replace it at your own expense unless it completely conks out during the warranty period.
- Cheaper registrations
Overall, the registration price is similar for petrol, diesel and electric vehicles.
Having said that, Queensland is one state that has introduced rebates as an incentive for people to buy brand-new or electric cars. They have done this in an attempt to meet the federal government’s target of zero emissions by 2050.
While it means Queenslanders can save a bit of money on their rego, other states and territories are likely to follow their lead soon.
- Servicing
If Energeia are correct and more than 50% of all new car sales will be for electric vehicles by 2030, then it is fair to assume that some models of petrol cars will get phased out.
This could make it difficult to source parts and even skilled repairers for certain combustion-engine vehicles, which means you might eventually have to write a vehicle off.
Conversely, with EV technology improving constantly, the second-hand model you pick up for cheap could be running around like it is brand new in a few years!