MARKHAM, Ontario--(BUSINESS WIRE)--
Used EVs in Canada are becoming easier to find, cheaper to run and easier to trust. As the market matures, lower prices, battery longevity and longer warranties are strengthening the case for buying used, with VinFast adding confidence through its Certified Pre-Owned program.
The used EV market is picking up speed in Canada, with electric vehicles now moving through the second-hand market faster than their gasoline counterparts. Clutch reported that used EVs sold in a median 24 days in June, six days faster than used gasoline vehicles and faster than any other fuel type1. By July, that median had fallen to 23 days, another record for EVs. The broader used-car market is moving in the same direction, with Canadians increasingly turning to used vehicles as new-car sales soften.
Part of the shift comes down to timing. The first wave of EVs bought or leased in Canada has now had several years to work its way into the used market. For buyers looking today, that means accessing the benefits of an electric vehicle without paying the premium that once came with being an early adopter. Sometimes, it also means enjoying those benefits sooner, with fuel savings adding up from day one.
According to one Rates.ca finding, sample EVs cost between 14 and 18 per cent as much to charge as comparable gasoline models to fuel, based on 20,000 km of annual driving and Ontario’s average electricity rate. A compact EV in its study required about $448 a year in charging, compared with $2,523 for the gasoline sedan used as its counterpart. For an electric SUV, the annual charging estimate was $616, versus $3,487 for the comparable gasoline model.2
While gasoline vehicles still had the lowest one-year total cost in three of its four categories, largely because purchase price matters, the gap narrows as the years pass. In the study, EVs generally went from being more expensive after one year to cheaper than their gasoline counterparts after five.
Battery-wise, too, the evidence is becoming harder to dismiss. Geotab’s 2024 analysis of almost 5,000 EVs found average battery degradation of 1.8 per cent a year, concluding that modern batteries could outlast the usable life of the vehicles they power. At the same time, a study published in Nature Energy using millions of UK vehicle records estimated an average lifespan of 18.4 years for battery-electric vehicles, broadly comparable with petrol cars. The researchers estimated lifetime mileage for BEVs at about 124,000 miles.
Repair costs are another part of the equation, and here the gap between EVs and conventional cars is also narrowing.
The cost gap between repairing electric vehicles and internal combustion engine (ICE)-powered cars in Canada has shrunk to its narrowest margin on record, according to new data from auto claims technology firm Mitchell. According to its second-quarter study, the average repairable BEV claim was $6,645, compared with $5,411 for an ICE vehicle—a difference of $1,234, the narrowest gap Mitchell has recorded3.
Brands are also stepping up to make used ownership less of a leap of faith. One example is VinFast, which began delivering its first Canadian VF 8 vehicles in June 2023. The company offers a 10-year or 200,000-km vehicle warranty, along with a 10-year, unlimited-kilometre warranty for the high-voltage battery.
That long coverage period is particularly relevant now that those early Canadian vehicles are entering the used market. Under VinFast Canada’s recently launched Certified Pre-Owned program, the unused portion of the original 10-year/200,000-km warranty transfers to the next owner.CPO vehicles also undergo a 105-point inspection, including battery-health checks, and come with a Carfax history report and 24/7 roadside assistance. By carrying some of the protections of new-car ownership into the used market, programs like this can give buyers more information and more confidence when deciding whether a few-years-old EV is the right fit.
As affordability concerns continue to dominate in an uncertain economic climate, it’s easy to understand why more people are turning to used cars, and the timing may be particularly favourable for used EVs. The market may have taken a few years to find its footing, but the pieces are increasingly falling into place.
Battery degradation is the gradual loss of a rechargeable battery’s ability to hold and deliver energy over time, like a sponge that slowly soaks up less water. For investors, it matters because faster degradation shortens product life, raises warranty and replacement costs, reduces resale value and usable range for electric devices or vehicles, and can affect demand, margins and long-term revenue projections.
battery-electric vehicletechnical
A battery-electric vehicle is a road vehicle powered only by rechargeable batteries and electric motors, with no gasoline or diesel engine; think of it as a smartphone on wheels that stores energy to drive instead of burning fuel. For investors, EV adoption affects companies’ future revenue and costs through shifts in manufacturing, battery supply chains, charging infrastructure, operating expenses, regulatory incentives, and consumer demand, making it a key factor in valuing automakers and related suppliers.
internal combustion enginetechnical
A device that creates motion by burning fuel inside cylinders, turning the energy from small controlled explosions into mechanical force that drives wheels or machinery—think of it as a piston-driven muscle that converts fuel into movement. Investors care because its prevalence and efficiency shape demand for fuels, vehicle and parts makers, maintenance services, and emissions regulation exposure; changes in technology, fuel prices or rules can shift profits across entire industries.
