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Used Tesla Prices See a Major Drop, but EV Buyers Need to Be Aware of These Hidden Costs

Electric cars have been receiving more interest as prices drop, but here are a few things to consider before you buy one.

By Jenny Cohen and Sara Albertelli , Edited by Michael Kurko

Updated Feb. 6, 2026

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With gas prices still high, more drivers are looking for ways to cut car costs and wondering if an electric vehicle (EV) could be the smarter long-term move. And right now, Tesla is shaking up its lineup by discontinuing the Model X and Model S this spring, which is pushing more shoppers toward the used market.

The good news is that those used prices can be surprisingly approachable. For example, you can find a 2017 Model X listed as low as $22,990 on sites like CarMax and Carvana (before fees), which is a huge drop from its original $75,900 MSRP. Kelley Blue Book even notes that it has a typical listing estimate of around $25,340. With plenty of Model X listings starting under $30,000, a once "out of reach" midsize electric SUV is suddenly on the table for a lot more buyers.

However, before you make the leap, it's worth weighing both the upfront price and the ongoing costs to see whether an EV truly fits your budget and driving habits.

Higher purchase price

Before getting the keys (or key fob) for an electric vehicle, you may notice that some EVs cost more than their internal combustion engine counterparts.

According to Kelley Blue Book, the average price of an EV fluctuated, but was around $58,000 to $59,000 in late 2025. That's about $10,000 more than the $48,000 to
$49,000 industry average for gas vehicles.

Some reasons electric vehicles are more expensive include increased demand and the additional technology involved in EVs.

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Higher registration fees

States sometimes add a tax gas to help pay for road repairs and other issues that need to be addressed due to the wear and tear on the nation's roads. But since electric vehicles don't need gas, EV owners may not be paying their fair share in infrastructure taxes.

Some states are adding an additional registration fee for electric vehicles to make up for this lost revenue. Fees vary from state to state but can range from $50 to $200 per year.

Check with the state your vehicle is registered in to find out how much extra you'll need to factor into your budget.

Charging on the road

You may see your electric bill rise after buying an EV and charging it at home. But the bigger surprise often comes when you plug in on the road.

The average U.S. home electricity rate is about 17.8 cents per kilowatt-hour, while public charging averages about 30 to 60 cents per kWh. Fast chargers can cost 35 to 60 cents or more per kWh, depending on location and demand.

Prices vary widely by network and state. Some charging stations bill by the kilowatt-hour, while others charge by the minute. Tesla Superchargers often charge in the mid-20s to mid-30s cents per kWh, while Blink stations commonly run closer to 40 to 50 cents per kWh.

The result: Public charging can cost two to three times more than charging at home, a downside many EV shoppers overlook.

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Higher premiums

Insurance premiums for EVs may be higher than those for your typical gas-powered vehicle. On average, insurance premiums for EVs are about 49% higher than for a gas car.

One reason is that electric vehicles can cost more to repair and replace, which bumps up insurance costs. It's important that you research the best car insurance to find the best EV insurance deal.

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Battery replacement

Many EV drivers may experience range anxiety, worrying they may not have enough charge to get where they want to go. The good news is that battery technology is improving, allowing drivers to get farther on one charge.

However, you'll likely need to replace your EV battery every eight years or 100,000 miles. While this seems a long way off, you could spend anywhere from $5,600 to $20,000 to replace your battery.

Unlocking add-ons

EV manufacturers like Tesla may brag about features like self-driving or acceleration boost, but those add-ons come at a cost.

Drivers may have to pay up to several thousand dollars to unlock these electronic features and get more out of their vehicles. For example, Tesla's full self-driving feature costs $99 per month to subscribe to.

Pro tip: If you're wondering if Teslas are worth it if you have to pay to unlock additional features, check out other EV models to see if they may offer these locked Tesla features as standard on their models.

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Home charging station

Fast chargers are a great way to quickly charge your vehicle. However, getting a charger set up in your home isn't cheap. The average cost to have an EV charger installed is about $800 to $3,000 for home use, and it can vary depending on labor costs, permits, and other requirements.

You may also need to buy a charger specifically for your car's make, leaving little room to compare costs. Additional costs include finding a trained electrician who knows how to install car chargers and possibly upgrading the electrical grid in your home to handle fast charging.

Temperature issues

Climates with more dramatic seasonal swings between cold and hot weather could reduce your battery's ability to hold the full charge. This could mean more money out of your wallet to pay for charging costs that can keep up with the varied climate.

Charging time

Time is money, and while it may not be a tangible cost, it's something to consider as you think about getting an EV.

While a fast charger can fully charge your EV in less than 30 minutes, that's still a lot longer than it takes to fill a traditional car at the pump. If you're not using a fast charger, that time can increase to seven, eight, or even 12 hours.

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Depreciation

Electric vehicles are no exception, as they generally depreciate from the moment of purchase.

The most significant impact occurs within the first three years of ownership. Some reports show that EVs can lose up to 52% of their value just after three years, compared to 39.1% for ICE vehicles.

Mileage, age, maintenance, brand reputation, demand, and even government incentives are factors contributing to electric car depreciation.

Loss of range

According to Kelley Blue Book's study, all cars lose range in the cold, but range loss is a significant concern for electric vehicle owners.

Refueling an EV takes longer, and public charging stations can be hard to find in many parts of the country.

That scarcity requires EV owners to plan longer trips around recharging points and to know they'll need to stop more frequently when the mercury drops.

Tire lifespan

It's simple physics, and EV owners who've had their vehicles for more than a couple of years can attest to it: The heavier weight of an EV plus increased takeoff torque shortens tire life. Expect $200 to $300 per tire replaced every 25,000 miles.

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Higher repair costs

Repair costs could be higher since some repairs are usually more expensive on an electric car than on a gas-powered vehicle. EVs can also sometimes be less reliable than gas vehicles.

There could also be an issue with who can repair your vehicle. Electric vehicle auto mechanics may not be as easy to find as combustion engine mechanics, and your car manufacturer may also have restrictions on who can repair your particular type of vehicle.

For example, Tesla's annual repair cost average is $832, compared to $652 for all car models. A scarcity of parts can also drive up prices when replacing them.

Bottom line

If you're considering an electric vehicle, consider potential hidden costs that may affect your decision.

However, there are also some advantages to buying an EV, especially the possibility of getting ahead financially because of high gas prices.

Check your budget and weigh the risks and benefits. You may be surprised to find that an electric car is right for you or decide it's better to stay unplugged.

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