New electric cars can be expensive, fortunately, the second-hand market now offers cheaper options than ever before.
Key takeaways
- EVs are no longer exempt from road tax. This change came into effect in April 2025, meaning that EVs are now taxed in a similar way to petrol and diesel cars
- On the plus side, used EV prices have gone down a lot recently, so a second-hand EV can actually be as good value as buying new these days
- Always check battery health when buying a used EV. You'll want to see whether the battery is owned outright or leased, since a leased battery carries an ongoing monthly cost
- EV insurance is generally pricier than equivalent petrol or diesel cover, though luckily this gap is narrowing
- Buying through a limited company can offer big tax advantages. Zero-emission benefit-in-kind rates remain heavily discounted compared to petrol or diesel cars, sitting at 4% for the 2026/27 tax year, and a 100% first-year allowance for new, unused, zero-emission cars
Should I buy a second-hand electric car?
Thinking about buying a used electric car? You're not alone! Second-hand electric cars seem to be growing in popularity as more models enter the used car market. According to Zapmap, only 3% of EV drivers wanted to switch back to petrol or diesel in 2025.
Ex-company cars are hitting the market in big numbers, often well-maintained and ready to go. So, if you’re after something eco-friendly without the hefty price tag and are weighing up the pros and cons of buying electric cars secondhand, it could be worth considering.
One thing to check? Whether the battery is owned or leased. Some older EVs, like the Renault Zoe, came with leased batteries, which would mean ongoing monthly payments to Renault for the battery in this case. Make sure you know what’s included in your purchase price.
What are the advantages of buying a used electric car?
- Cheaper upfront cost: Used electric cars can cost less than new ones.
- Lower running costs: Charging is usually cheaper than fuelling up.
- Zero emissions: Electric cars produce no tailpipe emissions, helping to reduce air pollution and your carbon footprint.
What are the disadvantages of buying one?
- Battery health: Check the battery report to ensure it still offers sufficient range.
- Charging speeds: Older models may take longer to charge.
- Limited choice: While growing, the second-hand EV market isn’t as vast as for petrol or diesel cars.
Are there grants available for used electric cars?
Yes, there’s the EV chargepoint grant for home charger installation. While the government’s plug-in car grant is no longer available, local schemes might offer incentives. It's worth checking if you're planning to buy second-hand electric car UK-wide.
Is car insurance more expensive for electric vehicles?
Electric vehicle car insurance doesn’t have to break the bank. While repairs can sometimes be pricier, especially for the battery, many EVs have advanced safety features that could lower your car insurance premiums. Plus, as EVs grow in popularity, insurance providers are offering more tailored policies.
If you buy a used electric car, it's worth sorting insurance early. Keep these tips in mind when comparing:
- Shop around: Different providers may offer different rates for EVs.
- Look for specialist EV policies: Some insurers cater specifically to electric vehicles, covering things like charging cables and battery repairs.
- Check for discounts: If you’re installing a home charger or have a lower annual mileage, you might qualify for savings.
Tips for buying a used electric car
- Check battery health: The battery is the most expensive part of an EV—ask for a report.
- Look at the range: Make sure it suits your driving habits.
- Examine the service history: EVs need less maintenance, but regular checks matter.
- Inspect charging capabilities: Ensure the charging port is in good condition and meets your needs.
- Plan your charging: Make sure you have access to charging points, whether at home or nearby.
- Take it for a spin: Test drives can reveal hidden issues.
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Can I save by buying a used electric car through a limited company or a business?
Buying a used electric car through limited company ownership can offer tax advantages. You might be eligible for capital allowances, letting you offset part of the car’s value against company profits. Plus, electric vehicles often come with lower benefit-in-kind tax rates, which can save money over time.
If you're specifically looking at buying a second-hand electric car through limited company finances, it's worth checking how the numbers compare to buying new.
What about tax and other costs?
If you're looking to buy a used car, it's worth considering all the costs you may face before committing. Electric vehicles were exempt from road tax (VED) until April 2025.
Since then, they've been taxed in the same way as petrol and diesel cars. As of 2026, that means a first-year rate of £10, followed by the standard rate of £200 a year from year two onwards.
If you have an electric or zero-emission vehicle registered on or after 1 April 2025 with a list price of more than £50,000, you'll also pay an Expensive Car Supplement of £440 a year. That's on top of the standard rate, for 5 years from the second year of registration.
While the UK's charging network is improving, availability still varies by location. Check for nearby stations or consider a home charger for a smoother EV experience.
EV pay-per-mile tax is coming in 2028
The EV tax is due to change in 2028. Not sure what this means for you? Pop your mileage into our free EV pay-per-mile tax checker and get your estimate in seconds.
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