Used electric vehicle values unsustainable
Plummeting used electric vehicle values will ‘stop the zero-emission transition in its tracks,’ according to an open letter to the government.
Used electric vehicle prices have fallen by 50% in the last two years and are expected to fall by a further 28% by 2030.
The letter to the Transport, Environmental Audit and Business Select Committees, co-ordinated by the British Vehicle Rental and Leasing Association (BVRLA) and signed by more than 25 organisations, is calling for government incentives to support consumers in the used car market make the switch to electric.
Without support, it warns of a 178% increase in used EV supply by 2028.
Used electric vehicle values falling
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 BEV 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.”
Signatories to the letter included the BVRLA, the Association of Fleet Professionals (AFP), the Vehicle Remarketing Association (VRA), Alphabet (GB), Arnold Clark Finance, Arval UK, Ayvens UK, Cox Automotive Europe, Kinto UK, 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 and Ireland, Clarion Housing Group, MJ Quinn, NG Bailey, Sanctuary Housing and Speedy Hire.
