EVs Lack Sales Appeal to Pre-Owned Buyers
Pre-owned (used) vehicle buyers rule the nation’s VIO (vehicles in operation), driving over 80 percent of cars and light trucks on U.S. roads.
Vehicles are among the few consumer products that can have a series of owners, and it is not uncommon in the U.S. for an automobile to have five or more owners over its life on the road. However, not all vehicle owners are alike. Buyers of new all-electric vehicles have environmental values, transportation needs and financial resources that differ significantly from those of the average pre-owned vehicle buyer.
The operating characteristics and capabilities of today’s battery electric vehicles (BEVs) do not satisfy the transportation needs of many buyers in the pre-owned market, who drive most of the nation’s VIO. This will keep internal combustion engine (ICE) vehicles on the road much longer in the future than is common today.
All-Electric BEV Focus
This iReport focuses on all-electric EVs, referred to as battery electric vehicles (BEVs). Before 2023, BEVs represented a strong and growing share of new electric vehicle sales in the U.S. (BEVs and Hybrids). However, that sales ratio has been flipped, and hybrids are now growing faster in new-market sales than BEVs.
Vehicle Lifecycles
Vehicles are owned by a succession of consumers, who may differ significantly in their environmental values, transportation needs and financial resources. Most cars and light trucks in the U.S. are not driven by their original buyers,
For BEVs to be a viable alternative to ICE vehicles, they must meet the needs of a range of vehicle buyers, not just those who buy them new.
New Versus Used Vehicle Buyers
BEVs (battery electric vehicles) remain largely an “enthusiast” market in the U.S. and have yet to reach the mainstream of new vehicle buyers.
Many buyers of new BEVs in the U.S. (many are leased) can overlook or overcome some of the operational limitations and unique characteristics of EVs at their current technological level.
Three of the most significant operational differences between BEV and ICE vehicles are driving range, charging (fueling) time and convenience, and reliable performance over many years (the average light vehicle in the U.S. is approximately 13 years old).
BEV Range Challenge
Range anxiety is a major factor that causes many new-vehicle buyers to avoid EVs or to select Hybrids over BEVs. Some of this fear of BEV range limitation is offset by the fact that electric vehicles (with their original owners) average only about half as many annual miles as ICE vehicles.
Many BEV buyers can switch to an ICE vehicle when range becomes an issue, or they have limited auto transportation needs.
Most pre-owned vehicle buyers do not fall into either of these two groups. Thus, driving range can be much more important to them than to new BEV buyers.
BEV Charging Challenges
Over three-quarters of today’s new BEV buyers purchase at-home charging equipment. As BEVs enter the used market, many pre-owned vehicle buyers will not be able to charge them at home (they live in an apartment, cannot afford the necessary equipment, etc.), so they will face more significant charging problems than today’s new BEV buyers.
A nationwide network of fast-charging and convenient stations must be in place for pre-owned vehicle buyers to fully embrace BEVs.
Aging Electric Vehicles
It is still unclear how long BEV batteries, their most costly component, will last. Battery replacement can top $6,000. That cost would scrap a 12-year-old BEV, a sobering thought since the average age of vehicles on U.S. roads is approximately 13 years.
Some BEVs (notably Tesla models) can face other problems. A Tesla often cannot operate if certain body parts are damaged due to sensors and other electronic issues. Some of these debilitating damages can be relatively minor, such as a dented fender.
Since approximately 30 percent of vehicles on the road, especially older models, have unrepaired body damage, this could pose a problem for owners of older BEVs, especially Teslas (which currently account for most BEVs on U.S. roads).
Add to this the “technology depreciation” faced by aging BEVs with the introduction of each year’s new models, packed with new technology, and it is clear that aging BEVs do not fill some of the biggest needs of pre-owned vehicle buyers who, for the most part, are seeking inexpensive and dependable basic transportation.
ICE Vehicles Will Gain Extended Life
It will be a number of years before all-electric EVs evolve to the point where they can match ICE vehicles in all operating conditions: long-distance driving, extreme weather and off-road use, to name a few.
For these and other reasons, consumers in the future will keep ICE vehicles in operation longer than they do now.
BEVs Will Not Work for Many Pre-Owned Buyers:
ICE Golden Age
BEVs face a bumpy road in expanding their share of new vehicle sales across the U.S., and it remains to be seen whether they will satisfy the needs, values and resources of pre-owned vehicle buyers, who drive over 80 percent of the cars and light trucks on U.S. roads.
This will stoke consumer demand for ICE cars and light trucks already on the road, producing an ICE aftermarket Golden Age that will extend well past 2040.
Six Major Takeaways
• Approximately 80 percent of cars and light trucks in the U.S. are pre-owned. Vehicles are among the few consumer products that can have successive owners. However, not all vehicle owners are alike. Buyers of new all-electric vehicles (BEVs) have environmental values, transportation needs and financial resources that differ significantly from those of the average pre-owned (used) vehicle buyer.
• BEVs (battery electric vehicles) remain largely an “enthusiast” market in the U.S. and have not reached the mainstream of new vehicle buyers. Many U.S. buyers of new BEVs can overlook and overcome some of the operational limitations and characteristics of EVs at their present level of technological development: driving range, charging issues, and reliable performance over many years (the average vehicle in the U.S. is approximately 13 years old).
• Used vehicle buyers are more likely to experience driving range anxiety than new BEV buyers. Many new BEV buyers can switch to an ICE vehicle when range is an issue, or they have limited transportation needs. Most pre-owned vehicle buyers lack these options.
• The lack of inexpensive, convenient BEV charging is another major barrier to their widespread acceptance. Over 75 percent of new BEV buyers purchase expensive home charging equipment. This is not possible for many pre-owned buyers who live in apartments, lack a garage or cannot afford the necessary charging equipment. A nationwide network of fast-charging, convenient stations must be in place for pre-owned vehicle buyers to fully embrace BEVs, but such infrastructure is not on the horizon.
• The question of how well BEVs age is a third issue blocking their broad acceptance in the pre-owned market. Battery replacement costs can top $6,000 even for a moderately priced BEV. That cost would scrap a 10-year-old BEV. Add to this the fact that many BEVs cannot operate with even minor body damage (due to sensors and other electronic issues) and the “technology depreciation” suffered by aging BEVs, and it is clear that BEVs do not meet the most important needs of many pre-owned vehicle buyers, who, for the most part, are seeking inexpensive, dependable basic transportation.
• While the number of new BEV models is expanding in the U.S., they face a bumpy road in significantly expanding their VIO presence, and it remains to be seen if they can satisfy the needs of pre-owned vehicle buyers, who drive approximately 80 percent of light vehicles on U.S. roads. This could lead to an ICE aftermarket Golden Age that will extend well past 2040. See the all-new 2026 Lang Aftermarket Annual for analysis of the VIO and aftermarket dominance of ICE vehicles. Over 95 percent of the Lang Annual’s 306 pages are packed with information and analysis available nowhere else.
Want more? Check out the June 2026 issue of AASP-MN News!