Common mistakes to avoid when buying a used EV

Common mistakes to avoid when buying a used EV

Posted on July 1, 2022

These are tips you should follow whether you are buying a new or used EV. If you follow our suggestions, you will come out on top.

Don’t buy from a private seller

Everyone has heard the cliché about the shady used car salesperson, but that industry, for the most part, has been cleaned up.

In Ontario, for example, to sell a used EV, you have to go through a rigorous background check and must put up a significant amount of money as a surety against potential lawsuits.

This weeds out the majority of the bad apples.

When you buy from a private seller, you are not provided the benefit of these same protections unless you are buying from someone you trust with your life, don’t buy their used car, without exception.

Used EVs are holding their value

Prior to Covid, used cars, for the most part, were sold at a discounted price in relation to their book value; this is no longer the case, especially with electric vehicles.

When you buy a used car, it will retain its value for quite some time to come.

While this limits your ability to negotiate the price down, it gives you peace of mind knowing that when it comes time to trade-in for a newer car, you will get top dollar for it.

Financing a used EV has never been easier

The auto finance industry in Canada has been turned somewhat on its head; everyone is fighting for market share; whether it is a chartered bank or a small boutique auto finance shop that specializes in subprime car loans, everyone is willing to make a deal.

What is fueling this exuberance is the Bank of Canada increasing the prime interest rate being charged to access the capital markets.

Before the interest rates get out of hand and no one is able to originate deals that are competitive, lenders have relaxed their loan underwriting, at least for now.

This means that even if your credit was less than fantastic, you could still get approved but as Peter Pan said to Captain Hook (paraphrasing, tick-tock) the clock is running out, and your window of opportunity is closing.

Where to get the best-used cars at a great price

While there are popular websites like AutoTrader, which is great when you want to do some general research, your best option is to buy a used car from a local used car dealership. There are a few intrinsic benefits to working with a local dealership.

• Great customer service and vehicle maintenance. When you buy from a local dealership, you have peace of mind knowing there is someone there to provide maintenance support.
• The dealership is able to get you approved for a car loan; they leverage their existing working relationship with the lender to secure a more competitive deal.

If you are interested in buying a used or any vehicle for that matter, whether gas-powered or EV, head over to your local car dealership today; they are there to make your car buying experience a truly memorable one.

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