• Car Dealer Plus
No Result
View All Result
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • UCA 2020
  • UCA 2021
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100
  • CD Plus
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • UCA 2020
  • UCA 2021
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100
  • CD Plus
No Result
View All Result

EV grants reduce used market values

Car Dealer Magazine by Car Dealer Magazine
September 9, 2013
0
Home News

SUBSIDIES CAPfor new electric vehicle purchases serve only to reduce second hand values and threaten the viability of the future EV market.

That’s the view of CAP which carried out a pan-European analysis of the impact of EV purchase subsidies.

Due to the cautious market view of electric vehicles, they already depreciate around twice as much as a conventional car, such as the Volkswagen Golf or Ford Focus.

However, CAP’s new report, which will be delivered to manufacturers at this week’s Frankfurt Motor Show, suggests that used values are forced down further by government subsidies.

To compare values in countries with an without EV grants, CAP analysed the used market performance of the Nissan Leaf in the UK, Germany, France and Italy.

Results show a direct correlation between stronger used values in Germany and Italy, where there are no plug-in car grants, and weaker values in the UK and France where new car purchases are subsidised by the government.

The report also revealed that if all subsidies were to be removed, it would widen the gap between new and used values so much that it would threaten the economic viability of choosing a new electric vehicle in the future.

According to the report’s author, Mark Norman, government subsidies for new plug-in car purchases merely serve to create cheaper used electric vehicles.

Norman said: ‘Our analysis of used market values across markets with and without a subsidy clearly shows that grants are ineffective as a means of reducing ownership costs and, worse still, their inevitable eventual removal will cost new EV owners thousands in additional depreciation.

‘This is because the used value is now established in each market and when the subsidy is removed in the UK and France, the additional cost of a new vehicle will never be retained by a higher residual value.’

He added: ‘As it stands, 12-month depreciation levels in the UK already amount to almost half the subsidised new price for a Nissan Leaf. Without the original £5,000 subsidy, total 12 months depreciation over the first year would amount to over £17,000.

‘With average depreciation for a comparable specification diesel Volkswagen Golf or Ford Focus currently standing at around £7,000, this would make the economic argument for buying the Leaf all but impossible to make even with the potential fuel cost savings.’

Related Posts

Farnell Land Rover Nelson exterior
News

Could new BMW and Mercedes cars be sold in one showroom? Dealer group bosses give their views on premium ‘multi franchising’

March 7, 2021
Ford Mustangs
News

Ford ditches the 2.3-litre Mustang as most buyers are opting for the V8

March 7, 2021
March 7 round-up: PM sticks to cautious easing; Vaccines for all ‘by June’; Covid accelerates in Europe; Custom Bentaygas
News

March 7 round-up: PM sticks to cautious easing; Vaccines for all ‘by June’; Covid accelerates in Europe; Custom Bentaygas

March 7, 2021
Electric car charging bay
News

SMMT believes Budget was ‘missed opportunity’ as experts highlight points that car dealers should note

March 7, 2021
Luke Humprhries playing darts
News

Marshall Motor Group adds one of darts world’s most exciting prospects to line up of sponsorships

March 7, 2021
City Motors Citroen Dacia and Volvo
News

Car dealer City Motors site in Bristol sold to housing association for £9.1m

March 7, 2021

Want the latest news?

Sign up to Car Dealer's daily news email updates

Subscribe
How many car dealerships does each manufacturer have in the UK? Car Dealerships Locations List 2021 revealed
News

How many car dealerships does each manufacturer have in the UK? Car Dealerships Locations List 2021 revealed

February 24, 2021
Used Car Awards with Mike Brewer and James Baggott graphi
News

Who won what at the Used Car Awards 2020? Mike Brewer reveals our winning car dealers

February 11, 2021
Car Dealer issue 156 front cover and Used Car Awards
Online Magazine

Out now: Car Dealer issue 156 features our Used Car Awards, H.R. Owen CEO Ken Choo and lots more

February 23, 2021
Used car market stronger than ever as August sees sales up by nearly 50 per cent for Big Motoring World
News

Opinion: Here are 10 reasons why I think there’ll be a rapid recovery in car sales when lockdown ends

February 16, 2021
Trophy Cars forecourt
News

Investigation: Meet the hyper-specialist car dealers making their money from weird and wonderful motors

February 11, 2021
Become a Car Dealer Plus member and get more out of this website including free legal advice
News

Become a Car Dealer Plus member and get more out of this website including free legal advice

January 15, 2021
Car Dealer Top 100 – The list in full of the most profitable car dealers in the UK
Car Dealer Top 100

Car Dealer Top 100 – The list in full of the most profitable car dealers in the UK

February 10, 2021
Bitcoin ATM terminal
News

Will car dealers in the UK accept Bitcoin for payment? Dealers speak out after Tesla plans to accept cryptocurrency 

February 18, 2021
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • UCA 2020
  • UCA 2021
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100
  • CD Plus
Call us: 020 8125 3880

© 2020 Blackball Media

No Result
View All Result
  • Car Dealer Plus
  • Latest
  • Used Cars
  • Live
  • Forum
  • Power 2020
  • Used Car Awards 2020
  • Used Car Awards 2021
  • CDX
  • Knowledge
  • Suppliers Guide
  • About Us
  • Latest Issue
  • Top 100

© 2020 Blackball Media

Log In
Register
Register
Server 1