Used EVs Are The Cheapest Vehicles To Own

Study Reveals Electric Vehicles as the Smartest Choice for Budget-Conscious Buyers in 2026

A groundbreaking new study has electrified the automotive world, revealing that three-year-old used electric vehicles (EVs) are significantly more cost-effective to own over a decade than both new and used gasoline-powered cars. The research, published on January 27 and sponsored by the Responsible Battery Coalition, the State of Michigan Department of Labor and Economic Opportunity, and the University of Michigan Electric Vehicle Center, offers a compelling case for savvy car buyers to consider the burgeoning market of pre-owned EVs.

The study meticulously analyzed a range of factors, including the initial purchase price, the cost of installing a Level 2 home charger, ongoing expenses such as fueling, insurance, and routine maintenance, and the eventual resale value of the vehicle after ten years. While it’s no secret that EVs experience steep depreciation in their first few years, the study found that this decline sharply levels off after the initial three-year period. From that point forward, the value of used EVs follows a depreciation curve similar to that of their gasoline or hybrid counterparts.

One of the most striking findings was the long-term savings associated with EV ownership. Over the expected 10-year lifespan of a vehicle, the study determined that fully electric vehicles could save owners between $6,700 and $13,000 compared to traditional gas-powered cars. This is largely due to the lower maintenance costs of EVs, which lack the complex internal combustion engines and associated components that require regular upkeep. For some vehicle types, the difference in maintenance costs over seven years could be as much as $3,700.

The study didn’t focus on specific models but rather examined an amalgamation of vehicles within each category. Given that many EVs are comparable in size and utility to popular gas or hybrid compact and midsize SUVs, the findings are particularly relevant for the average American consumer. With the average age of a car on U.S. roads nearing 13 years, according to S&P Global, the longevity and reliability of EVs are becoming increasingly attractive.

This research comes at a pivotal moment in the automotive industry. Analysts predict a significant influx of three-year-old, off-lease EVs hitting the used car market this year. Tyson Jominy, senior vice president of data and analytics at J.D. Power, told Gizmodo that heavily subsidized leases for models like the Tesla Model Y and Volkswagen ID.4, along with discontinued vehicles such as the Ford F-150 Lightning and Nissan Ariya, are set to create a buyer’s market for used EVs in 2026. “Dealers will still want those cars off their lots,” Jominy noted, signaling a potential goldmine for budget-conscious buyers.

The implications of this study extend beyond individual savings. As more consumers opt for used EVs, the demand for new gasoline-powered vehicles could decline, accelerating the transition to a more sustainable transportation ecosystem. Additionally, the findings challenge the long-held perception that EVs are a luxury only affordable to the wealthy. With the right timing and research, even middle-class families can now access the benefits of electric mobility without breaking the bank.

For those considering a used EV, the study offers a roadmap to maximizing value. By focusing on vehicles that are three years old or more, buyers can avoid the steepest depreciation while still enjoying the benefits of modern EV technology. Moreover, the lower maintenance costs and potential savings on fuel make EVs an increasingly attractive option for long-term ownership.

As the automotive industry continues to evolve, this study serves as a clarion call for consumers to rethink their approach to car buying. With the promise of significant savings and the added benefit of reducing one’s carbon footprint, the case for used EVs has never been stronger. Whether you’re a first-time buyer or looking to upgrade, 2026 could be the year to make the switch to electric—and save a bundle in the process.

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