Used EVs ‘too expensive’ compared to diesel and petrol vehicles

The high price of electric vehicles (EVs) is a concern for dealers when it comes to the electrification of the used car market, new research suggests.

November’s Startline Used Car Tracker shows that more than half (58%) of dealers are worried about the expense of EVs compared to petrol and diesel vehicles.

Also, one-in-four dealers (25%) are troubled by their lack of onsite charging facilities, almost one-in-five (19%) simply say customers aren’t ready to accept EVs and 14% that their sales team is not trained to sell them.

When asked what would help them adapt to electrification, 61% of dealers wanted generally cheaper EVs while 38% said that longer range vehicles would be an advantage and 28% that a greater choice of electric models was needed.

Finally, one-in-five dealers (20%) would like to see the Government’s 2030 electrification deadline extended, while 13% would like to see training programmes for sales staff and 11% want better availability of finance options.

Paul Burgess, CEO at Startline Motor Finance, said: “The recent announcement by Ford that Fiesta production would be ending soon felt like a watershed moment in mainstream car manufacturers moving towards electrification. The question is, what low-cost EVs are forthcoming that will replace much-loved, everyday cars like the Fiesta?

“Dealers are clearly worried about the affordability of EVs, the suitability of their current premises to retail them, the ability of their sales staff to sell them and the appetite of lenders to finance them.

“With eight years to go until the 2030 production deadline, it feels as though the motor industry still has much to do to help dealers make the EV transition.”

Burgess says that more effort needs to be put into showing consumers that the overall running costs of used EVs are generally very much comparable with familiar petrol and diesel cars, even if the upfront purchase price is higher.

“This seems like a crucial point when it comes to creating market acceptance,” he added.

The Startline Used Car Tracker is compiled for Startline Motor Finance by APD Global Research.

Rising cost of living continues to impact used car prices and EV demand

Used car prices fell marginally by 0.3% in October but overall prices are still 24.8% higher than at the start of 2021 according to Indicata UK’s latest Market Watch insights report.

In the first 10 months of 2022, prices have fallen by 4% with the UK remaining the only country in Europe to experience a fall.

The rising cost of living is starting to have an impact on the used car market with sales down 8.3% to the end of October. But as sales have fallen stock levels have increased by 5.9% compared with 12 months ago which is welcome news in a market devoid of used cars for over two years.

“It’s ironic that a fall in both sales and prices has been relatively healthy for dealers,” commented Jon Mitchell, Indicata UK’s group sales director.

“The used market remains very healthy but the continuous rise in the cost of living has taken the sting out of consumer demand. This trend seems to have set the tone for the industry into early 2023.

“But while new car supply remains restricted used car prices will remain stable because of the major stock shortages the industry continues to experience,” he added.

The rising cost of living is also impacting the speed at which used EVs are selling due to them being significantly more expensive than a used petrol or diesel.

Used petrols are now selling twice as quickly as EVs but during August it was the other way round.

Indicata’s data confirms sales of EVs continue to increase albeit from a small base, even if they are taking longer to sell.

“Used EV sales haven’t ground to a halt but are taking twice as long to sell,” said Mitchell.

“Many of our dealer customers are stocking both used hybrids and EVs in preparation for when the market moves towards low or zero emission motoring.”

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