Interested in an Electric Vehicle? Consider Buying Used.

The Falling Prices of Used Electric Vehicles

Introduction

If you’re in the market for an electric vehicle, the time might be right to consider a used one. The high cost of electric vehicles has long dissuaded many people from buying one. Last year, for example, electric cars and trucks were so popular and supply so limited that waiting lists were common. And some lucky individuals found they could sell their ride for more than they paid for it. But over the past year, prices of used electric vehicles have fallen significantly. In addition, climate legislation passed in 2022 includes a tax credit to encourage more people to buy used electric cars and trucks.

Auto Inflation has Eased

Used cars as a whole are around 7 percent less expensive than they were a year ago, according to data from the Bureau of Labor Statistics. But used battery-powered models are 28 percent less expensive than a year ago, according to Recurrent, a research firm that specializes in the used electric vehicle market. Shortages of new cars during the pandemic made new and used cars more expensive, as strong demand for new vehicles spilled over into the used market. Now, supply chains and inventories have improved, and new electric vehicles — and new cars generally — have become more available.

Are Electric Cars a Bad Investment?

Most cars depreciate over time. That said, electric cars and trucks are holding their value better today than they did before the pandemic. That’s because there are more places to charge these cars and people have become more familiar with them, said David Paris, director of market intelligence at J.D. Power Valuation Services. If you bought, say, a used BMW i3 in 2019, Mr. Paris said, it retained only around 30 percent of the manufacturer’s suggested retail prices after three years. But now the i3 retains more than 50 percent of its value, suggesting that buyers have fewer concerns about the cars and specifically the health of their batteries, the most expensive part of those vehicles. Liz Najman, a researcher at Recurrent, said most used electric cars were still new enough that their batteries should be covered under warranty. “Most used E.V.s in the country have at least an eight year, 100,000-mile warranty on their battery,” she said.

You Might be Eligible for a Tax Credit

The Inflation Reduction Act, President Biden’s climate bill, grants a tax credit of up to $4,000 for buying used electric vehicles that cost no more than $25,000. The credit is available to individuals who earn up to $75,000 a year and couples who make $150,000 or less. According to Recurrent, around 27 percent of the used electric car inventory is eligible for the credit, up from 17 percent last year. To qualify, a used vehicle has to be at least two years old. Buyers cannot claim the credit more than once every three years. But, unlike with the tax credits for new vehicles, there are no restrictions on where a used electric vehicle is assembled or where the materials in its batteries come from.

More Options are Available

Before the pandemic, some of the most popular electric vehicles had been on the road for only a few years at most. Among the few electric models often found on the used car lot, many were luxury models like the Tesla Model S, a large sedan, or the Tesla Model X, a three-row sport-utility vehicle. The market is much bigger and more diverse now. The number of used electric cars for sale has tripled over the past year, according to Recurrent. A recent scroll through used car listings in the New York area showed a wide range of cars, including a Porsche Taycan listed for more than $80,000 and Chevrolet, Hyundai and Nissan models selling for less than $25,000. Buying a used electric vehicle might not be right for everyone, especially if you have to drive long distances or live somewhere where charging stations are few and far between. But if you have a place to plug in and don’t frequently drive several hundred miles a day, you can get a good deal.

SDGs, Targets, and Indicators

1. SDG 7: Affordable and Clean Energy

   • Target 7.3: By 2030, double the global rate of improvement in energy efficiency
   • Indicator 7.3.1: Energy intensity measured in terms of primary energy and GDP

2. SDG 11: Sustainable Cities and Communities

   • Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management
   • Indicator 11.6.2: Annual mean levels of fine particulate matter (e.g. PM2.5) in cities

3. SDG 13: Climate Action

   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning
   • Indicator 13.2.1: Number of countries that have integrated mitigation, adaptation, impact reduction, and early warning into primary, secondary, and tertiary curricula

Analysis:

The article discusses the falling prices of used electric vehicles and the incentives for buying them, which are connected to several Sustainable Development Goals (SDGs).

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The issues highlighted in the article are connected to the following SDGs:

• SDG 7: Affordable and Clean Energy
• SDG 11: Sustainable Cities and Communities
• SDG 13: Climate Action

2. What specific targets under those SDGs can be identified based on the article’s content?

The specific targets under the identified SDGs are:

• Target 7.3: By 2030, double the global rate of improvement in energy efficiency
• Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management
• Target 13.2: Integrate climate change measures into national policies, strategies, and planning

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The indicators mentioned or implied in the article that can be used to measure progress towards the identified targets are:

• Indicator 7.3.1: Energy intensity measured in terms of primary energy and GDP
• Indicator 11.6.2: Annual mean levels of fine particulate matter (e.g. PM2.5) in cities
• Indicator 13.2.1: Number of countries that have integrated mitigation, adaptation, impact reduction, and early warning into primary, secondary, and tertiary curricula

Table: SDGs, Targets, and Indicators

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: nytimes.com

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