Tips to Know Before Buying a Used Electric Car (EV)

By Steve Ward and the Mercury Team

Buying a used electric car can be a smart way to get into an EV without paying new-car prices. You may also spend less on routine upkeep since EVs have fewer moving parts than gas cars.

But before you commit, it helps to know what to look for, especially around battery health, charging, total cost, and car insurance. Whether you’re looking to save money on fuel or reduce your carbon footprint, this guide covers everything you need to consider before signing the title.

Why Buying a Used Electric Car Is Becoming More Popular

Used EVs are getting easier to buy for one big reason: they’re finally getting closer in price to used gas cars. According to a CNBC report, analysts highlight a narrowing price gap. In August 2025, used EVs were only about $897 more than comparable used gas vehicles on average, which is the smallest gap on record.

Another factor is supply. Automakers have leaned heavily on EV leasing in recent years. Now, many of those leased vehicles are being returned and resold, which adds more inventory to the used market and can help push prices down.

Beyond the price tag, many drivers are switching because the technology has proven itself. Modern EVs offer instant torque for smooth acceleration and a quiet cabin experience. Plus, with fewer moving parts than internal combustion engines, they often spend less time in the shop for routine maintenance.

Are Used Electric Cars Worth It?

For many drivers, the answer is a resounding yes. The biggest advantage is the lower upfront cost compared to a new model. Since new cars take their steepest depreciation hit within the first few years, buying used allows you to let the original owner absorb that loss.

However, there are considerations. You must evaluate the vehicle’s range against your daily commute and ensure you have access to EV charging. While maintenance costs are generally lower, insurance can sometimes be higher for EVs due to specialized repair requirements.

Ultimately, buying an electric car is worth it if you do your homework on the specific model’s reliability and battery longevity.

Understanding the Used EV Tax Credit

A few years ago, the used EV tax credit (the Previously-Owned Clean Vehicle Credit) could help eligible buyers lower the cost of a qualifying used EV. But that changed under the One Big Beautiful Bill Act.

According to the IRS, the Previously-Owned Clean Vehicle Credit is not available for vehicles acquired after Sept. 30, 2025. That means for most shoppers buying in 2026, this federal used-EV credit won’t apply.

However, the IRS notes you may still be eligible if you acquired the vehicle on or before Sept. 30, 2025 (for example, through a binding written contract and payment) and then place the vehicle in service later when you take possession.

Where to Look for Savings Instead

Even without a federal used-EV tax credit, you may still find ways to cut costs:

State and local incentives: Some states, cities, and air districts offer rebates or other EV programs. These vary a lot by location. The U.S Department of Energy is an excellent resource to search for these incentives.
Utility incentives: Many electric utilities offer discounts or rebates for home charging equipment or off-peak charging rates.
Manufacturer and dealer offers: Some brands and dealers run promotions on certified pre-owned EVs, financing, or included home-charging gear.
Total cost of ownership: A used EV may still pencil out if you can charge at home and keep operating costs low.

Incentive rules can change fast. Before you buy, confirm what’s available in your area and review the latest IRS guidance.

Key Things to Check Before Buying a Used Electric Car

Inspecting an EV requires a shift in focus. Instead of listening for engine knocks or checking the transmission fluid, your primary concern should be the high-voltage battery.

Battery Health and Warranty Coverage

The battery is the most expensive component of an electric car. While most EV batteries last much longer than early skeptics predicted, degradation does happen.

“Always try to obtain a detailed report on the battery health when purchasing a used EV,” said Steve Ward, Director, Strategic Planning & ERM for Mercury Insurance. “The batteries of higher-mileage electric cars are more likely than those of lower-mileage cars to have been replaced. Make sure to also ask about maintenance history and if the owner has any service records they can provide. Where the vehicle has been driven is also important to know, as colder climates like those in Michigan may reduce the life expectancy of the battery.”

Federal law mandates that automakers cover EV batteries for at least eight years or 100,000 miles. When buying used, check how much of this warranty remains and if it’s fully transferable to subsequent owners.

Charging Compatibility and Range

Before you buy, confirm you can charge the vehicle easily. Most EV owners do the majority of their charging at home. Check if the car comes with a portable charging cord and determine if you need to install a Level 2 charger in your garage for faster speeds.

For public charging, consider the connector type. Most non-Tesla EVs use the CCS standard, but the industry is shifting toward the North American Charging Standard (NACS).

Vehicle History and Maintenance Records

Even though EVs require less maintenance, they’re not maintenance-free. Ask for records showing regular service. Key items to look for include:

Coolant flushes: EVs use coolant to manage battery temperature.
Software updates: Make sure the vehicle is running the latest operating system.
Tires: EVs are heavier and have instant torque, which can wear tires down faster than gas cars.

Total Cost of Ownership

Calculate the full picture. While you save on gas, you’ll pay for electricity. Look into your local utility rates and the cost of installing a home charger. You should also factor in electric car insurance premiums, which can vary by model. To get an idea of potential costs, review our list of the most affordable electric vehicles to insure.

Best Used Electric Cars to Consider

When shopping for a used EV, reliability and value are key. While availability changes by region, a few models consistently rank well for used buyers:

Nissan LEAF: Often one of the most affordable options, great for city driving.
Chevrolet Bolt EV: Offers excellent range for the price.
Tesla Model 3: High availability and access to the Supercharger network make this a popular choice.
Ford Mustang Mach-E: A solid option for those needing a crossover with style and space.

If this is your first step into the EV world, choose a model with a range that comfortably exceeds your daily driving needs to avoid range anxiety.

Insurance Tips for Your Used EV

Protecting your new investment is just as important as choosing the right car.

Why EV Insurance May Differ From Gas Vehicles

You might notice that insuring an electric car can cost slightly more than a comparable gas vehicle. This is usually because EVs utilize specialized technology, sensors, and parts that can be expensive to repair. Additionally, repair shops require specialized training to safely handle high-voltage systems.

However, EVs also come equipped with Advanced Driver-Assistance Systems (ADAS) that can help prevent accidents, which insurers view favorably.

How to Save on Used EV Insurance

You can offset potential cost differences by taking advantage of discounts. Look for:

Bundling: Combine auto and home or renters insurance.
Good Driver Discounts: Maintain a clean driving record.
Low Mileage: If your EV is a second car or used for short commutes.

Want to know what you’re eligible for? Contact a local agent today, and they can help you secure insurance savings.

How to Test-Drive and Inspect a Used EV Like a Pro

A test drive tells you a lot about the health of the car. Here’s what to look for:

Listen: Turn off the radio and listen for suspension squeaks or rattles. Without engine noise, these sounds are easier to hear.
Braking: Test the regenerative braking. It should feel smooth and consistent, capturing energy as you slow down.
Range Check: Note the estimated range at the start and end of your drive. Does it drop consistently with the miles driven, or does it plummet?
Inspect the Port: Open the charging port and look for any damage or debris that could prevent a solid connection.

Final Thoughts: Making the Smart Choice With a Used EV

Buying a used electric car can be a smart way to go electric for less. Focus on the key essentials (e.g., battery health, charging fit, and total cost of ownership, including insurance), and you’ll be in a strong position to make a confident purchase.

Once you have your EV, the adventures are just beginning. You can even learn how to take a road trip with an electric vehicle to maximize your new car's potential.

Ready to find the right coverage for your electric vehicle? Speak with a local Mercury agent to create a policy that fits your needs and budget.

Steve Ward

Director of Strategic Planning and ERM at Mercury Insurance

Steve Ward, Director, Strategic Planning & Enterprise Risk Management at Mercury, has been with the company for more than 14 years, heading up Mercury’s ERM initiatives. He leads the company’s climate risk reporting and sustainability governance programs, including initiatives that minimize the company’s impact on the environment. Steve has been a leader in the IT/Innovation industry for more than 40 years. He has a BS from Cal Poly Pomona and earned his Master’s Degree from USC. Steve, his wife Sylvia and their two sons live in Redondo Beach.