The used electric vehicle (EV) market in the United States is beginning to mature as early adopters of EVs trade up for the latest models. However, according to a study conducted at Rutgers University-New Brunswick, many potential buyers, particularly low-income drivers, are skeptical of EVs and deterred by the price. The study, published in the journal Transportation Research Part D: Transport and Environment, found that the market for used electric vehicles in the U.S. is currently dominated by wealthy households.
To understand what motivates buyers of different income levels to purchase second-hand electric battery vehicles, researchers Wei San Loh and Robert B. Noland designed and conducted a nationwide survey of EV owners. Participants were recruited via electric vehicle discussion groups on Reddit and Facebook and were asked about pre-purchase concerns, including battery performance, charging availability, price, driving range, availability of used EVs on the market, and the cost of installing a home charger. A total of 1,167 owners of used electric vehicles in more than a dozen states were surveyed between September and October 2022.
The study found that price, charging availability, and battery performance are the top concerns for buyers when considering the purchase of a used electric vehicle, particularly among lower-income drivers. Those with annual incomes below $50,000 were more likely to be concerned about the availability of charging stations than those making more than $150,000, while lower-income drivers were less likely to worry about battery performance. This could be attributed to the fact that lower-income drivers typically have shorter commutes, resulting in less concern about battery performance.
Owners of used EVs with annual household earnings below the national median of $75,000 were also found to be more concerned with price than those with household incomes exceeding $150,000 per year. The study suggests that encouraging nationwide EV adoption will require broader uptake of new and used EVs from all income levels. Policy changes, such as increasing the availability of charging stations and expanding subsidies for used vehicle purchases, could help promote greater used EV uptake across income groups.
According to the researchers, buyers often compare EVs to combustion engines, highlighting the need for creative strategies to make used EVs more attractive to people from different income brackets. With EV adoption playing a crucial role in reducing greenhouse gas emissions, it is essential to address the barriers that lower-income drivers face when considering the purchase of a used electric vehicle. By implementing policies that make EVs more accessible and affordable for all income levels, the researchers believe that the widespread adoption of EVs can be encouraged.
