Government support may be needed to kick-start used EV market

More needs to be done by Government to ensure a healthy used electric vehicle (EV) market  exists, according to the Vehicle Remarketing Association (VRA).

The trade body believes there is an imbalance in Government incentives between new and used EVs, and that support will be needed to drive demand for EVs as they enter the used market in the coming years.

VRA chair Philip Nothard said: “The government should be applauded for doing much in recent years to encourage uptake of new EVs, especially through low personal company car taxation. This has been notably successful and electric power now makes up a significant proportion of new car sales.

“However, the used car sector has so far been left to look after itself when it comes to EVs and, as shown with dramatic price falls in recent weeks and months, demand is extremely variable even for the relatively low numbers of electric cars now making their way onto the used market.”

A high volume of used EVs are expected to enter the market in the next two years but incentives may be needed to ensure that a healthy market existed at that time.

Nothard added: “There’s a fundamental point here. New EVs are largely attractive to company car drivers because of low tax and to businesses because of their low environmental impact. These factors do not apply to private, used buyers.

“A lot of research exists that shows used buyers have a potential disposition towards buying an EV in the future, but evidence so far suggests that they will only do so if the car is the right price and makes sense on a practical level.

“What we believe is needed are incentives that mean when a consumer is faced with the choice of a used diesel or petrol car, or an electric alternative, the latter is sufficiently attractive that the used buyer sees it as viable purchase.”

Scotland offers used EV buyers an interest free loan, while a €2,000 subsidy is available in the Netherlands, a €1,000 payment in France and a grant of up to €6,000 in Germany.