Second-hand shortfall
Fleets require more EV options suitable for the used market, according to Fleetcheck. Sean Keywood reports.
F Tackling EV misperceptions
leets need to be able to buy EVs now that will appeal to the used car market in four years’ time, but are being prevented from doing so by a lack of choice, according to Fleetcheck.
The software company’s managing director, Peter Golding, said that fleets wanting to buy electric versions of everyday family cars, in order to maximise future residual values, were finding themselves short of options. Instead, he said they faced a marketplace largely consisting of premium saloons and SUVs.
Golding said: “What we’ve seen is a car market that has electrified from the top down, so if you want to spend £50,000- plus on prestige saloons or SUVs, you’ll get lots of options.
“This has worked reasonably well so far and those sectors are now essentially electrified.
“However, there are large areas of the market where businesses that want to buy bread-and-butter cars that are electrically powered are left scratching their heads.” Golding said that the biggest area where the EV market was lacking was probably in offering lower-cost vehicles with a reasonable range capability between charges.
He said: “If you currently run a lot of small petrol hatchbacks and want to find an EV equivalent from an established manufacturer that covers around 200 miles
at less than £30,000 – which seems a reasonable ask – options are very limited. “There are other areas where choice is similarly almost non-existent – pick-ups, estate cars, anything around £20,000. “The EV market is really quite homogenous in a negative way and this is proving damaging to future residual values.” According to Golding, one of the key factors behind a dramatic fall in EV residual values seen over recent years was not a rejection from used buyers of EVs specifically, but simply that there were too many of the ‘wrong’ types of vehicles in circulation.
He said: “If you look at the used market, there is ample evidence of this happening. Demand for many big, prestige electric SUVs is currently saturated, for example. These are just not the kind of vehicles that everyday buyers want – too big, too expensive to buy, and too expensive to run.
“There are models coming, we are told, and there are lower cost choices starting to appear from a wide range of Chinese manufacturers. However, life is frustrating for those who want to electrify in the short term or who don’t want to buy from a car maker without a well-established UK presence. “What fleets need is to be able to buy the type of vehicles that everyday used buyers are likely to want in four years’ time. In most cases, that is not going to be the types of EVs available today.”
A recent Government inquiry by the House of Lords Environment and Climate Change Committee highlighted that in the road to zero ‘progress is not happening fast enough, and major barriers remain’ including charging anxiety as well as the cost and availability of vehicles. A pervading culture of misinformation was identified as a key issue in deterring businesses and private motorists from making the switch to EVs. Europcar is tackling the perceptions problem head-on with a clear strategy to make electric vehicles accessible without long-term financial commitments or penalties. Rental for a few days, weeks or months not only makes EVs easily accessible without any availability delays; it also puts employees in the driving seat to test them in real- world conditions.
Working with many businesses, Europcar is helping them understand where electric motoring might impact productivity – and how to mitigate against that. A range of electric cars and vans have been added to the Europcar fleet in the past year including models from GWM ORA, Mercedes, MG, and Tesla. And more makes and models will be available during 2024 to help companies take a road of discovery and learn which EVs will be right for them.
Companies and their employees are discovering that ‘range anxiety’ really doesn’t have to be a barrier. Often the normal daily mileage of someone driving for business doesn’t mean they need to stop to charge during the working day. A charge at home outside of working hours, or at business premises can provide the range they need. And for those that do go the distance, Europcar’s partnership with Zapmap means they can easily plan where they can stop for a charging top up without significant delay. Rental also provides a sustainable alternative to ownership. Why commit to long- term ownership of vehicles that will stand idle for much of the working week?
On a mission to eliminate the FUD
Europcar is on a mission to dispel the Fear, Uncertainty and Doubt about electric motoring. A wealth of information is available on the Europcar Digital EV Guide; a network of Certified Electric Vehicle Experts support customers at vehicle handover and information about charging options helps businesses and drivers work out what’s the best solution for them at home, work and at the roadside.
To find out more about how Europcar is helping businesses step into electric visit
europcar.co.uk/business/electric
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