The Expert Podcast

We talked before on this channel about how used electric vehicles might be one of the best deals in the automobile market right now. Part of it is because there was a pretty big glut of those produced between the last two to six years. Most of the primary original buyers of those were what's called lifestyle buyers. It wasn't really designed as being their primary vehicle—they wanted to be identified with green energy or maybe have a second vehicle.

When these cars go into the used car market, that same level of demand for electric vehicles isn't present among used car buyers. Used car buyers aren’t purchasing for the same reasons—they are more practical. As a result, the depreciation on electric vehicles is much greater. We're seeing some vehicles unbelievably cheap. Here's a good example: a Tesla Model S for $9,000. That may be an exception, but plenty of them are under $20,000. There are plenty of Teslas out there in the marketplace for $12,000 to $15,000.

Even if you weren't considering an electric vehicle, where else can you buy a two- to three-year-old vehicle with 50,000 to 60,000 miles for a price in the teens? It can't happen. If your use of the proposed vehicle doesn’t require a range of more than 200 or 300 miles—such as commuting around town or back and forth to work—it might be a great consideration, even if you never thought about owning an electric car. Sometimes, you can even take that $14,000 or $15,000 and get a couple thousand dollars in incentives from your local government or electric company, making the deal even sweeter.

Look for vehicles that have seen big depreciation when new to find a great deal on a used one. The person who bought this $9,000 Tesla did a test on the battery, and it had only degraded by 15%, which is an acceptable charge rate. As a commuter car, it's an option worth considering. Even if the car eventually needs a new battery, replacing it for around $5,000 would bring the total cost to $14,000—essentially giving you a like-new vehicle.

The battery is the most substantial part of an electric vehicle. In fact, it's really the whole vehicle. The electric motors and other components aren’t as critical because they are incredibly reliable—they won’t break down like gasoline engines or transmissions. Electric vehicle motors and drivetrains can last hundreds of thousands of miles. The battery is the weak point, but even if you factor in the cost of replacing it, you're still ahead financially. Plus, many of these batteries are lasting hundreds of thousands of miles, and you may even have some warranty left.

Whatever you think about electric vehicles or Teslas, keep in mind that from a financial perspective, it’s worth considering the savings over buying a gasoline car. Finding a good gasoline car for under $20,000 is tough, as most quality used cars are in the mid-$20,000s. Saving $10,000 by opting for a used electric vehicle could put you in a much better financial position.

Thank you for watching another video at ActualHuman.com and Describe.TV. If you have questions or comments about our videos, put them in the link below. Also, remember that you have access to live one-on-one consultations with licensed experts in various fields, including investigations, insurance, surety bonds, civil court mediation, real estate records research, real estate brokers, mortgage lenders, business development, marketing, and advertising.

If you find this content valuable and want to dive deeper into a subject, you can't just ask YouTube a question—but you can talk to an actual human. Use the link below. Thanks for watching!