10:35 am, May 9, 2023
Cox Automotive has called on the government to do more to help the used EV market as prices continue to tumble.
In its latest AutoFocus report, Cox said the uncertainty in the sector about the cost of ownership and residual values could be eased by additional government intervention.
Experts also appealed for knowledge-sharing across the industry, as retailers continue to grapple with the level of specialist knowledge needed to sell used EVs.
Similar concerns over expertise have recently been raised with Car Dealer by both Robin Luscombe and Martin Miller.
Elsewhere, Cox found that the number of used battery-electric vehicles (BEVs) entering the market was growing too fast for charging infrastructure to keep up.
By the end of 2023, more than a fifth of new vehicles in the UK up to a year old are expected to be BEVs, with that figure – for cars up to three years old – set to double by 2027.
However, 36 per cent of franchise dealers and 90 per cent of independents didn’t stock used EVs last year.
Last month, we reported how car supermarket group Car Planet was refusing to stock used electric cars as they were deemed ‘high risk’.
That followed similar sentiments expressed by a panel of independent dealers at our inaugural Car Dealer Live conference in Gaydon in March.
One of the major issues highlighted by experts is that supply continues to outstrip demand.
As such, Cox believes it is time for the government to offer the same incentives to used BEV buyers as it does to those in the market for a new electric car.
It said the UK government had a number of incentives and discounts for people looking to buy a new BEV, eg, the plug-in grant, which offers a discount of up to £2,500 on new BEVs.
But it said there was no such incentive for their used equivalent.
Philip Nothard, Cox Automotive’s insight and strategy director, says the government should follow examples set by other countries to stimulate demand.
He said: ‘In the US, the Biden administration has introduced a $4,000 tax credit for the purchase of used BEVs under $25,000, which has led to a significant increase in their adoption.
‘It is essential that similar initiatives are implemented here to encourage the adoption of used BEVs and support the growth of this market. Until then, there will only be more instability and volatility.
‘It’s clear that there’s a discrepancy between the demand for BEVs and their availability in the used vehicle parc.
‘I think a powerful antidote to this clash would involve improving awareness, more knowledge-sharing in the industry and, of course, legislative change that makes the process of stocking buying BEVs both more affordable and streamlined.’
