Warning for drivers to be cautious when buying a second-hand electric car – here’s what to look out for
DRIVERS are being warned to remain cautious when buying a used electric car.
As tempting as the cost savings might seem, experts warn that the battery may not be at its optimal performance.
With the UK Government pushing forward with its plan to ban the sale of new petrol and diesel vehicles by 2030, many people have started to look at purchasing their first EV.
And with savings of up to 67 per cent, when purchasing a used electric car compared to a new model, the proposition to buy second-hand is an attractive one, reports, The Express.
Joanne Robinson, director of lenders at Zuto commented on whether second-hand vehicles would be suitable.
She said: “Historically, there have been challenges surrounding EV batteries, as it was common for these to be leased separately – and this is still an issue in some cases.
“Nowadays, however, many manufacturers are including the battery at the point of purchase rather than selling it as a separate product to the car itself.
“For example, two popular EVs – the Nissan Leaf and the Renault Zoe – used to be sold separately to their batteries, but new models are now sold as one complete product.”
When buying a new Nissan Leaf EV, drivers can expect a price of around £32,720, compared to just £10,921 for a used model.
The Kia Soul also offers buyers around £17,000 in savings if they buy a used model (47 percent less than its price brand new), comparethemarket found.
Joanne Robinson continued, saying: “With older models in the second-hand market, however, this may not be the case.
“The lack of publicly available data for consumers on whether batteries are included or not poses a big challenge.
“Drivers should be cautious of this and ask the right questions about the battery when purchasing a second-hand model.”
When purchasing a second-hand vehicle, drivers should bear in mind that if the vehicle is over three years old, they will be responsible for having the car MOT’d once per year.
Whereas the first MOT on a brand-new car isn’t due until it’s three years old.
This could change in the coming years after the Department for Transport launched a public consultation earlier this month to potentially change the frequency of tests for recently registered vehicles.
It is also worth considering that although the upfront costs are cheaper, there will be additional costs associated with older vehicles.
This includes the increased servicing needs and potential repairs needed, in comparison to a brand-new model.
Simon Bayley, Managing Director at SMF (Specialist Motor Finance), said: “The first question consumers need to ask is ‘are the batteries part of the vehicle or on a separate lease?’.
“If it’s the latter, it can be very difficult to find a suitable way of offering finance and this usually ends up happening via a personal loan rather than a Hire Purchase (HP) agreement.
“The other big unknown, however, is the future value of the EV.
“Although HP agreements are easy if the customer wants a Personal Contract Purchase (PCP) or contract hire agreement, the lenders need to look at the residual values.
“Some of these may be conservative as there isn’t much data to accurately forecast.
“Ultimately, this may make the finance more expensive than an equivalent petrol or diesel car.”