News analysis
In need of a power-up
The VRA has called for government support for the used EV market. Sean Keywood reports.
he UK Government should act to support the used EV market with next month’s Budget, according to the Vehicle Remarketing Association (VRA). The body said it believed there was an imbalance between government incentives for new and used EVs, and more needed to be done to ensure a healthy market for the latter. 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.
T
“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.”
Nothard said that within a year or two, large volumes of EVs would enter the
10 | June 2023 |
www.businesscar.co.uk
used market from large vehicle fleets and more needed to be done to ensure a healthy market existed at that time. He said: “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.”
Nothard said schemes such as Scotland’s interest-free used car loan, a €2,000 subsidy in the Netherlands, a €1,000 payment in France, and a grant of up to €6,000 in Germany were potential ideas to be considered.
He said: “There are all many kinds
“Used buyers have a potential disposition
towards buying an EV in the future... if the car is the right price and makes sense on a
practical level.”
of incentives that could be offered to used buyers and we would welcome the opportunity to discuss them with the Treasury, providing our input on those we believe could be most effective from a remarketing point of view. “What is undeniable is that a healthy used car market is essential for the electrification of the UK car parc and, as industry experts, we are far from sure that such a market will develop in the medium-term without support. The government should understand that EVs are not just about new sales.” The VRA’s appeal followed on from a member meeting held by the organisation, which heard used EV values could fall by 5-10% during the next few months.
Dean Bowkett of Bowkett Consulting said: “The one unbreakable rule of the used car sector is that you can’t buck supply and demand, and consumer interest in EVs remains muted against a backdrop of rising supply.
“We could soon be in a situation where for mainstream cars that are available with both petrol and electric drivetrains, the latter is marginally cheaper.”
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53