Brand-new electric vehicles tend to be expensive to purchase compared to similar petrol-engined cars, and this is undoubtedly one of the stumbling blocks that puts potential buyers off making the switch to an EV. Price parity is happening, led in large part by the influx of more affordable Chinese electric cars. Even at the higher end, a Mercedes EQE electric luxury car is now priced similarly to the equivalent E-Class petrol version.
Nonetheless, for those new to EVs and still a little hesitant to outlay a significant investment in a brand-new electric car, there is another way. Whether you consider this a positive or a negative, electric cars currently do suffer heavy depreciation, as much as 50% in some cases in the first year alone. Whilst this will cause new car buyers to flinch from a sharp pain in the pocket, for used car purchasers, it presents a fantastic opportunity to try out an EV.
The Global Perspective
The global supply of EVs is skyrocketing. Established carmakers and ambitious new entrants from China are flooding the market with affordable electric vehicles. Brands like BYD, Geely, GWM, NIO, and Xpeng are challenging legacy automakers by offering competitive pricing.
Interestingly, in markets like the UK, most new EV purchases are made by fleets and companies due to tax incentives. The same is true in the UAE and fleet vehicles, usually leased for three years, are now entering the used market. These cars present an appealing option for buyers looking to go electric without splurging on a brand-new model. Many of these vehicles were first introduced in 2022 and include excellent offerings like the Kia EV6, Hyundai Ioniq 5 and Ford Mustang Mach-E.
However, this influx (along with heavy discounting on new EVs that kicked off with Tesla starting a price war in early 2024), is also creating downward pressure on values. While this can be a bargain for buyers, it raises questions about long-term values.
The UAE’s Growing Market
In the UAE, the second-hand EV market is still in its infancy, and depreciation is not yet as steep due to lower supply. The UAE used car market is estimated to have a value of $20bn. Currently, however, EVs account for around 1% of all used cars in the country, a modest but significant share thanks to the recent growth in adoption. A quick search on the Classifieds site Dubizzle revealed nearly 900 EVs for sale.
Currently, Tesla dominates the EV space, making up nearly 64% of the country’s new electric vehicle sales. Consequently, a significant portion of the used EV inventory comprises Tesla models and of the 900 almost a third were indeed Teslas. This was followed by Mercedes with almost 100 EVs, and BMW taking the last podium place with around 80 cars advertised.
Strangely, Rolls-Royce is in fourth place with apparently 48 Spectres advertised for sale. Some of these might be repeat adverts, but for a rarefied brand new high-end super-luxury car, that only launched last year, it’s somewhat astonishing to see so many hit the used market so quickly with prices starting from AED1.7m.
BYD leads the Chinese brands with around 35 cars for sale including the BYD E2 from as little as AED50,000 (not currently available new in the UAE), and the ATTO 3 from AED90,000. Plus, the Zeekr 001 starts from AED150,000 for two-year-old Chinese-spec models and AED190,000 for 2024 GCC-spec examples – a saving of at least AED30,000. The Chinese-spec Zeekr X from under AED150,000, also represents a useful AED20,000 saving over new prices.
If you want to stick with Japanese cars, both the Toyota BZ4x and Honda ENS1 (both grey imports) are being advertised for around AED90,000.
Ride-hailing services like Uber also influence the UAE’s EV landscape. Many Uber drivers use Teslas and you can find high mileage Teslas with up to 200,000km on them from between 4-8 years old, for around AED90,000. The question for buyers is whether these high-mileage EVs are still a good investment.
Battery Health: The Elephant in the Room
Battery health is a critical factor when buying a used EV. The performance and range of an EV are directly tied to the condition of its battery. Over time, all batteries degrade, but the rate of degradation varies based on factors like charging habits, climate, and mileage.
As we’ve covered previously in another article, EV battery life is actually far more resilient than is widely perceived, and real-world examples such as the Nissan Leaf and early Teslas have been shown to exceed expectations in terms of battery longevity.
Yet it’s also true that a hot climate can accelerate battery degradation, particularly for vehicles parked outside or charged in extreme temperatures, especially on a fast charger. For de-fleeted Uber cars, the high mileage and constant charging cycles may leave batteries with reduced capacity. Having said that, most modern EVs are engineered to retain a significant portion of their range even after extensive use. For example, a Tesla Model 3 may still have around 80-85% of its original range after 200,000 kilometres.
While this depreciation creates opportunities for budget-conscious buyers, it’s essential to weigh the remaining battery life and potential cost of replacement when making a purchase. Buyers should always obtain a battery health report before purchasing a used EV. This report will provide insights into the remaining capacity and overall condition of the battery.
Keep in mind that with most brands, the warranty for the battery will be up to 8 years and 160,000km with an obligation to replace it if capacity falls below 60%, but check the terms and conditions of the warranty carefully.
Should You Buy a Used EV in 2025?
With falling prices and an increasing variety of models, there’s never been a better time to explore the market. However, battery health remains a critical consideration, especially in our region where extreme temperatures can take a toll.
Considering that the high mileage of ex-Uber vehicles will invalidate the battery warranty, avoid the temptation of bargain prices on these. Instead seek out low mileage nearly new EVs, with GCC spec as they will have been prepared specifically for our climate and will be represented by official dealers locally – you’ll have somewhere to go if you do have to fall back on that warranty!
So, should you buy a used EV? Absolutely – but only if you approach the market with diligence and awareness. In 2025, buying a used EV isn’t just about saving money; it’s about making an informed investment in a sustainable future.
