The used electric vehicle (EV) market in the United States is starting to grow as early EV adopters upgrade to newer models. However, many potential buyers, especially those with low incomes, have doubts about the convenience of EVs and are deterred by the cost, as reported in a study from Rutgers University-New Brunswick.
“Transitioning to electric vehicles is crucial for reducing greenhouse-gas emissions, but in the U.S., the market for used electric vehicles is mostly controlled by wealthy households,” explained Wei San Loh, a former student at the Edward J. Bloustein School of Planning and Public Policy at Rutgers-New Brunswick. Loh’s study, published in the journal Transportation Research Part D: Transport and Environment, provides insights into this trend.”
Loh and Robert B. are studying the reasons behind the purchase of second-hand electric battery vehicles by buyers from various income levels.Noland, the head of the Rutgers Alan M. Voorhees Transportation Center, led a survey of electric vehicle (EV) owners across the country. The participants were recruited from electric vehicle discussion groups on Reddit and Facebook. The survey included questions about demographic and socio-economic information, as well as pre-purchase concerns such as battery performance, charging availability, price, driving range, availability of used EVs, and the cost of installing a home charger. A total of 1,167 used EV owners from over twelve states were surveyed between September and O.
October 2022.
When focusing on household income, the study discovered that price, charging availability, and battery performance are the primary considerations for buyers looking to purchase a used electric vehicle. However, these concerns were not consistent across all income levels.
Individuals with annual incomes below $50,000 were more concerned about the availability of charging stations compared to those who made over $150,000. On the other hand, those with the lowest incomes were 32 percent less likely to be worried about battery performance than those with the highest incomes. Loh explained that lower-income drivers typically have shorter commutes, which could be the reason for this difference in concern.
The gap was further highlighted in the study. Additionally, individuals who own pre-owned electric vehicles (EVs) and have annual household incomes below the national median of $75,000 were more concerned about the price compared to those with household incomes exceeding $150,000 per year. “Taken together, these findings suggest that EV demand may still not be widespread for lower-income households in the U.S.,” Noland said. “Encouraging nationwide EV adoption will require broader uptake of new and used EVs from all income levels.” Loh, who now works at the University of Michigan as a senior statistician, suggested that policy changes could help promote greater adoption of pre-owned EVs.Increasing the availability of charging stations and expanding subsidies for used vehicle purchases are two commonly discussed ideas for making electric vehicles (EVs) more appealing across income groups, according to Wei San Loh. Loh also emphasized the importance of thinking creatively to attract people from different income brackets to consider the used EV option, as buyers often compare EVs to traditional combustion engines. This research was published in Transportation Research Part D: Transport and Environment by Wei San Loh and Robert B. Noland.Transportation Research Part D: Transport and Environment, 2024; 128: 104086 DOI: 10.1016/j.trd.2024.104086