Affordability stifling electric switch in the private market, says Auto Trader

The vast majority of car buyers – some 87% – will not pay more for an electric car, according to new Auto Trader research.  

The survey, of more than 2,000 drivers conducted in September, also found that petrol cars are the most popular choice among car buyers for their next vehicle.

Nearly two thirds of buyers (65%) are intending to spend a maximum of £20,000 on their next vehicle. 

Among these buyers, 47% are considering a petrol car and, 38% are considering some form of hybrid – but just 8% an electric vehicle (EV).

According to Auto Trader’s latest Road to 2035 Report, the median RRP of a new electric vehicle is £51,000 – 31% higher than new petrol and diesel cars.

The report underlines the lack of affordable options of new EVs on the market, with just 16 for sale under £30,000.

Among the minority willing to spend more on an electric car, 70% are unwilling to spend over £3,000 extra.

Over 65s are the most reluctant to pay more with 6% of drivers willing to spend extra, although almost one in four 25–34-year-olds would pay extra to make the switch.

Used EV sales are relatively healthy after a 62% sales rise in sales since January, as buyers were tempted by lower prices, according to the Road to 2035 Report.

The sales are strongest among 3-5-year-old EVs, which experienced the steepest price declines and reached price parity with petrol/ diesel counterparts of a similar age.

The average price of a petrol 3-year-old BMW 3 Series was £24, 110 in August, compared to the £23, 137 average price of a 3-year-old Tesla Model 3, which has fallen more than £22,000 compared to August 2022.

But new EV sales remain low and are growing at a far slower rate, up 11% since January. The online platform shows EVs accounting for 16.2% of new car leads in July, up 3.5ppts year-on-year, but still well below the 32% market share achieved when petrol prices rose to nearly £2 per litre in June 2022. 

New EV prices remain prohibitively high despite five in six offering some sort of finance offer.

Consumers are showing increased interest in hybrids with interest a third (33%) higher than 2023 in August, as consumers explore all options available for lower emission vehicles amid uncertainty over the Government’s position on new hybrid sales.