- A group of companies spanning right across the UK’s automotive sector have written a joint letter, co-ordinated by the BVRLA, to the Secretary of State for Transport, calling on more actions to support the UK’s growing used electric car market.
- With £1.4 billion allocated in last months Industrial Strategy towards supporting the ‘continued uptake of electric vehicles’, the group has called on some of this funding to be dedicated towards improving the used EV sector.
- As the number of electric vehicles within the UK’s car parc continues to grow, the used electric car market is becoming a crucial and more accessible path into first-time EV ownership.
More support needed for the UK’s ever-growing used EV market
The letter, which can be read in full here, has been signed by a significant number of key players, such as Auto Trader UK, associations like EVA England, car finance firms, and OEMs such as BYD, MG, and Polestar.
As we saw earlier this year, whilst the number of EVs registered on UK roads continues to increase thanks to rising new EV sales, the number of diesel cars on the road is decreasing as vehicles reach their end of life. As this progresses over the next few years, the used car market will becoming increasingly full of fully-electric options. The letter highlights how this used market can become the most affordable opportunity for EV uptake to be increased, which is also evident in the strong demand Auto Trader has seen for such models.
Of course, the used electric car market cannot be sustainable without strong new EV sales that gradually filter down to the used market. With that in mind, the letter also calls for new grants and subsidies for the new EV market. The Plug-in Car Grant was discontinued back in 2022, but this has been argued to be premature by many in the industry. Meanwhile, to ensure health in the used EV market, the letter also recommends other policies, such as clear battery health standards, public information campaigns, and increased investment in EV-related skills and training.
BVRLA Chief Executive, Toby Poston, commented:
“The used car market is nearly four times the size of the new one. Maintaining healthy demand and values for second-hand electric vehicles is essential if we want to deliver a sustained transition. The link between the new and used markets is critical. Low residual values increase the cost of financing and leasing new vehicles. This impacts all customers, especially consumers and SMEs, suppressing demand and eroding confidence across the BEV ecosystem.
We know the Government is listening. The £1.4bn committed to support EV uptake last month could make a difference. This letter is just one example of how we continue to work with industry and government to highlight how this money can achieve the best return on investment.”
