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Used EVs currently offer car buyers lowest lifetime cost of ownership
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According to new research from the University of Michigan School for Environment and Sustainability (SEAS) Center for Sustainable Systems (CSS), now is a good time for anyone considering an electric vehicle to consider purchasing used.
The study assessed the lifetime ownership costs of used vehicles with different body styles and powertrains and found that completely electrified options offered the greatest savings. For example, compared with a new midsized SUV with an internal combustion engine, a 3-year-old used EV version offered a lifetime savings of $13,000. Meanwhile, compared with that same new vehicle, a used internal combustion engine vehicle, or ICEV, would offer a lifetime savings of only $3,000.
“Transportation is the second-largest portion of the average household’s budget and, in the new vehicle market, EVs are usually more expensive,” said Maxwell Woody, the lead author of the study. Woody is a research assistant at CSS. “But 70% of all vehicle purchases are used, and used EVs have the lowest cost of ownership across vehicle classes.”
SEAS Professor Greg Keoleian, senior author of the study and co-director of CSS, says that although the high cost of EVs has limited their adoption in the U.S., this study could help more people choose vehicles with lower carbon emissions.
“Encouraging more adoption of EVs is key to decarbonizing the transportation sector and cost is a big factor in purchasing decisions,” said Keoleian. “So this is positive news, I think, for helping encourage consumers to buy EVs.”
This analysis also revealed some caveats and considerations, including when EVs cut costs the most and concerns about the battery performance of a used EV for long-range drivers. The researchers say they are already monitoring resale data for 2026 to help identify trends.
The study's authors included Sabina Tomkins, assistant professor at the U-M School of Information (UMSI); Antara Green and Christian Hitt at CSS; and Sally Yin and Alexander Liu at UMSI. The study was supported by the Responsible Battery Coalition.
Study: Total Cost of Ownership of Electric and Gasoline Used Vehicles (DOI: 10.1088/1748-9326/ae38f8)