A failure by the UK Government to support the used EV market will stop the zero-emission transition in its tracks, according to a consortium of fleet and leasing industry organisations.
The group, coordinated by the BVRLA, has written to Parliament’s Transport, Environmental Audit and Business Select Committees calling for measures that support household and SME access to EVs, and mitigate volatile residual values.
The group has warned of a growing ‘chasm’ between used market supply and demand, and said that relying on the industry to absorb the financial impact of this was unsustainable.
Suggested countermeasures include targeted grants and clear and standardised battery health information.
BVRLA chief executive Toby Poston said: “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.
“A lack of government incentives or affordable public charging infrastructure means that too few used car buyers or dealers are seeing the benefit in going electric. As a result, used EV supply is outstripping demand and prices are continuing to fall.
“This depreciation is costing fleets hundreds of millions and being passed on to new buyers in the form of higher motor finance costs.
“To restore confidence in the net zero transition and sustain a healthy electric vehicle ecosystem, the Government needs to intervene.”
The full list of signatories is as follows:
Association of Fleet Professionals (AFP)
Electric Vehicle Association (EVA) England
National Franchised Dealers Association (NFDA)
Vehicle Remarketing Association (VRA)
Alphabet (GB)
Arnold Clark Finance Ltd
Arval UK
Ayvens UK
Cox Automotive Europe
Kinto UK Ltd
Leasys
Select Lease by Mobilize
Novuna Vehicle Solutions
Octopus Electric Vehicles
Pendragon Vehicle Management
SG Fleet
United Rental Group (URG)
Zenith
The AA
Amey Group
Autoglass and Laddaw
AXA UK & Ireland
Clarion Housing Group
MJ Quinn
NG Bailey
Sanctuary Housing
Speedy Hire
