Used market vital to electric vehicle success, says Cox Automotive

A healthy market for used electric vehicles will help the new EV market reach its full potential, says Cox Automotive.

Demand for new EVs is at a record high with 13.24% of all new cars sold in April being either battery electric vehicles (BEVs) or plug-in hybrid vehicles (PHEVs). 

The Government has already announced a ban on the sale of new petrol and diesel cars in vans in the UK from 2030, but Cox believes more action must be taken to increase EV adoption in the UK and to tackle some of the stumbling blocks affecting consumer purchasing.

Recent research by Regit found 92% of drivers are concerned the country’s charging structure is not up to today’s demand, and 69% are sceptical it will be able to cope with extra demand by 2030.

Cox feels the key to allaying this fears and boosting EV adoption throughout the UK is the used market, where EV volumes and appetites are increasing.

Philip Nothard, insight and strategy director at Cox Automotive, said: “Used EVs are becoming available to buyers otherwise turned off by the expensive new vehicle list prices, high monthly finance payments, and mixed messaging surrounding brand-new models.

“Some earlier EV models have been on the road for a decade, so these are increasingly reaching the used market and benefit both dealers and customers alike.

“They retain high residual values, offer strong profit margins for dealers and offer more affordable, straightforward EV option for consumers.”

Nothard said this means the used market is key for building interest and confidence in the technology.

He added: The UK needs to make its position on EV crystal clear for consumers and lean on the used market to help give motorists their first EV experiences, driving wider adoption across the country which, in time, will undoubtedly be reflected in an improved position for new EV sales as the country continues to build its EV infrastructure.

“Perhaps a government grant for buyers of used EVs could positively impact EV adoption sooner and benefit the manufacturers of new ones.”

The Government currently provides a plug-in car grant for new vehicles, although in March it reduced this from £3,000 to £2,500 and excluded models that cost more than £35,000.