Is that used EV worth the price? This checklist could save you thousands of dollars.

By Genna Contino

Higher insurance costs, specialized tires and extra registration fees and taxes can add to the cost of owning an electric car

Sales of used EVs are on the rise. Here are the hidden costs to watch out for if you're considering buying a previously-owned electric vehicle.

Pain at the pump is pushing cost-conscious drivers away from traditional gas-powered cars and toward electric vehicles. And with the average new-car price clocking in at more than $50,000, shopping secondhand has become a go-to alternative for consumers looking to slash their monthly costs.

Sales of used EVs were up 21% in September compared with a year ago, according to wholesale auto marketplace Manheim, and the average listing price was about $36,700.

When setting a budget, automotive experts say buyers should factor in some hidden costs of EV ownership that aren't included in the sticker price. From degraded batteries and pricey home electrical overhauls to state road-use taxes and specialized tires, pre-owned EVs can come with a unique ledger of surprising expenses.

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"It's so easy to have an impulse buy and say 'I'm just going to go this route,'" said Lauren Fix, an automotive analyst and host of Car Coach Reports. "You really need to do your homework and you need to drive one."

Here's what you need to know before you start shopping for a pre-owned EV.

Check the battery

Fix compared buying a used EV to buying a secondhand smartphone. You don't know how harshly the previous owner cycled the battery or whether they left it plugged in constantly at 100%.

For this reason, she recommends all used EV shoppers request a battery "State of Health" report, which is easiest to get when buying pre-owned directly from brand dealerships. Those buying directly from the owner or from a third-party seller can take the car to a technician certified in working with electric cars for a maintenance check.

Once you actually get the report, ensure the battery capacity is above 70% to 80%, Fix said, because replacing an out-of-warranty battery can run EV owners upwards of $20,000, essentially totaling the car's market value in some cases.

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That being said, experts say that concerns over battery health can be overblown, especially for more modern EVs. Tesla (TSLA), for example, said in 2023 that its vehicles only lose about 12% of capacity on average after passing the 200,000-mile mark.

"Early EVs often had smaller batteries and worse cooling systems so this was more of an issue, but battery durability is getting better," said Jamie Dow, an early EV adopter who writes for the trade publication Electrek.

It's also important to check if the car's warranty is still active. EV battery warranties last eight years or 100,000 miles, according to Kelley Blue Book, but drivers buying secondhand must confirm the in-service date - not just the model year - and ensure the warranty transfers to subsequent owners.

Make a plan for charging

If you don't have a charging station at your workplace or near your home, installing a charger at your home could make the most sense. But it's important to figure out your charging plan before you buy the car, said Javier Labrin, founder of Go Electric Chargers, an EV-charger installation company in Florida.

"The No. 1 shocker for people when they're buying an electric car is ... they come home to find out that their electrical system cannot support an electrical-vehicle charger," Labrin said. "If you have it in your garage it can be under $1,000. But if you have to upgrade your electrical panel or [trench wiring] underground, it could be $3,000 to $10,000."

Consumers shopping for used EVs can also use a charger as a bargaining chip, Labrin said. "That would also be a surprise expense. They get the car, but now they have to buy a $600 charger," he said. Tell the dealer or seller "we'll do the deal if you throw in a charger."

If you do install a charger, Fix noted that it's important to report that to your home-insurance company.

"In the eyes of the insurance company, it is the same thing as putting an addition on your home," she said. "If you fail to tell them and your house catches fire, you'll be in a very ugly situation."

Budget in these hidden costs for used EVs

-- Specialized tires: EVs run better with specialized tires that account for the weight of a heavy battery, and they typically cost about $200 to $400 per tire, according to Kelley Blue Book, vs. about $50 to $150 each for regular tires.

-- Higher insurance costs: Car insurance for an EV is about 20% higher on average compared to a gas-powered car, in part because EVs cost more to repair than internal-combustion-engine cars, according to Mercury Insurance. Insuring a Tesla Model 3, for instance, costs $3,650 a year on average, while insurance costs around $2,710 for a gas-powered Mazda 3 and about $3,250 for a BMW Series 3.

-- Extra fees and taxes: Check to see if your state charges extra registration fees or specific road-use taxes for EVs. Some states charge EV owners per-mile taxes to recoup lost gas-tax funds, and buyers have to pay these when they renew their tags each year.

While specialty tires and higher registration fees can eat into your savings, lower routine maintenance costs is one of the financial advantages of owning a used EV.

"You won't pay for gas every week and you don't have oil to change, but you still have other moving parts," Fix said. Brakes, fluid, cooling systems and electronic systems will still need routine care, but it's significantly cheaper on average compared to maintenance on a gas-powered car.

There are also cash-back incentives offered by utilities and states to drivers who choose to go electric. Duke Energy (DUK), for example, offers credits to help cover the cost of charger installation plus discounted rates for charging overnight in some states.

Some utility companies and state programs offer bigger incentives for lower-income EV buyers, according to Dow. "A lot of people aren't aware of these incentives, and sometimes you can save thousands of dollars," he said.

Make sure the car passes this checklist before driving it home

Before driving home in your pre-owned EV, make sure it can pass this checklist:

-- The seller or dealer has verified battery capacity and provided a State of Health report.

-- You've successfully charged the vehicle during a test drive.

-- Charging cords and adapters are included.

-- Confirm any recalls on the vehicle model have been cleared.

-- The car has not suffered any flood damage. "Water and electricity do not like each other," Fix said.

-- Make sure an authorized brand dealer or an EV-certified mechanic is within standard towing range.

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-Genna Contino

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