KATHMANDU: A new study says used electric vehicles are now the cheapest cars to own over the long term. The research was conducted by the University of Michigan and published in Environmental Research Letters.
According to the study, a three-year-old electric midsize SUV can save around USD 13,000 over a 10-year vehicle life compared to a new petrol SUV. In comparison, a used petrol SUV offers savings of only about USD 3,000.
Researchers found that used EVs have the lowest total cost of ownership across all vehicle types. This includes purchase price, fuel or electricity, maintenance, and end-of-ownership costs. The key reason is faster depreciation of EVs in the first few years, which makes them much cheaper in the used market.
The study notes that around 70 percent of vehicle purchases are used, making this finding important for buyers. Used EVs were cheaper to own than petrol, hybrid, and plug-in hybrid vehicles in every category studied.
Charging behavior plays a major role. The study assumes owners charge 80 percent at home and 20 percent using public chargers. Home charging is much cheaper, especially during off-peak hours. If drivers rely mostly on public fast chargers, costs increase and savings reduce.
Researchers also included the cost of installing a Level 2 home charger, as many first-time EV buyers do not already have one.
The study analyzed data from 260,000 used car listings across the US. It assumed an average annual driving distance of approximately 24,140 kilometers and compared four powertrain types across five vehicle classes.
While new EVs are often more expensive to own than petrol or hybrid vehicles over seven years, the situation changes with used EVs. Three-year-old EVs were the cheapest to run in all categories.
The researchers say this is good news for used car buyers, but less encouraging for new EV buyers due to lower resale values. Overall, the study suggests that for cost-conscious buyers, used electric vehicles now make the strongest financial sense.
Nepal’s EV discussion often focuses on new models and taxes, but the used EV market may be just as important. As early electric cars return to the market after a few years of use, falling prices could bring EV ownership within reach of middle-income households.
For an economy dependent on fuel imports but rich in domestic electricity, used EVs offer a practical path towards wider electrification, especially as Chinese and Indian brands gain reliability and resale confidence.
