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Used EVs Now Offer Lowest Lifetime Ownership Costs, Peer-Reviewed Study Finds

Researchers attribute the advantage to rapid early depreciation alongside lower running costs.

Overview

  • The University of Michigan study, published Jan. 27 in Environmental Research Letters, combined 260,000 2024 Craigslist listings with Argonne National Laboratory models and price data from 17 U.S. cities.
  • Across body styles, three-year-old battery electric vehicles were found to have the lowest total ownership costs versus internal combustion, hybrid, and plug-in hybrid models.
  • Example finding: compared with a new midsize gasoline SUV, a three-year-old EV version delivers about $13,000 in lifetime savings, versus roughly $3,000 for a three-year-old gasoline version of the same model.
  • The study identifies faster initial depreciation as the main source of EV savings, with lower maintenance and fueling costs providing additional benefits.
  • Savings vary by circumstances: home charging boosts value, high electricity prices can flip the result in Boston and San Francisco, and used EVs typically offer reduced battery range for long trips; researchers are monitoring 2026 resale trends.