BVRLA calls fall in used EV values ‘unsustainable’

The British Vehicle Rental & Leasing Association (BVRLA) has warned that used electric vehicles are losing their values at a rate that is ‘unsustainable’ for fleet operators.

It has said that over a typical three-year lease period, residual values of EVs decrease to just 35%.

This means an EV purchased for £50,000 will be worth just £17,500 compared to £30,000 for other models.

Gerry Keaney, chief executive of the BVRLA, said: “The reality is that EV residual values in the last two years have dropped by 50%. That is the evidence of the accelerated depreciation write-off that we’ve seen. And again, when we look forward two years, the rate of used EVs coming back to the market is about to double.”

He said the fall in values is partly a result of falling demand for new EVs from private buyers, meaning vehicle manufacturers are introducing even more attractive discount schemes.

Kearney said:

“We need to accelerate the take up by consumers of used EVs and therefore new EVs in the marketplace. To do that, we’re going to need to have some targeted incentives. That’s just the plain truth.”

The BVRLA has now launched a campaign urging the government to introduce further incentives for private buyers of used EVs, including potentially a VAT cut or grants for used car buyers.