Used EVs Now Cheapest Cars to Own, Study Finds

Great news for anyone shopping for a used car: electric vehicles have become the most affordable option to own over time, not just the greenest.

University of Michigan researchers crunched the numbers on 260,000 real vehicle listings and discovered something remarkable. Used EVs consistently cost less to own than gas cars, hybrids, or plug-in hybrids across every vehicle class they studied.

The savings are substantial. A three-year-old used electric SUV saves drivers around $13,000 over its lifetime compared to buying a new gas-powered SUV. Meanwhile, a used gas SUV only saves about $3,000 versus buying new.

"Transportation is the second-largest portion of the average household's budget," said Maxwell Woody, the study's lead author. His team analyzed real Craigslist data from 17 U.S. cities, combining it with gas prices, electricity costs, and detailed vehicle models to calculate true ownership costs.

The secret behind EV savings isn't just cheap electricity and low maintenance. Right now, electric vehicles lose value much faster than gas cars, creating a golden opportunity for used car buyers.

"I was surprised by how consistent the result was," Woody said. "I expected EVs would be cheaper in some scenarios, for some cities or vehicle types. But their costs were consistently lower across all vehicle classes and in almost all the cities."

The savings work best for drivers who can charge at home and don't need maximum range for long road trips. In Boston and San Francisco, high electricity prices can narrow the gap, but used EVs still compete well.

The Ripple Effect

This research arrives at a perfect moment for fighting climate change. While new EVs remain expensive and slow to catch on, 70% of all vehicle purchases happen in the used market. That means millions of Americans could switch to lower-emission vehicles while actually saving money.

"Encouraging more adoption of EVs is key to decarbonizing the transportation sector, and cost is a big factor in purchasing decisions," said Greg Keoleian, senior author and professor at the University's School for Environment and Sustainability.

The window for these deals won't last forever. As more people discover used EVs and demand increases, the dramatic depreciation driving today's bargains will level off. But for now, going green saves you green.