Electric car charging station in London, via PAElectric car charging station in London, via PA


Used EV market needs more support in Spring Budget, says Vehicle Remarketing Association

  • Vehicle Remarketing Association calls for support for used EV market in next month’s budget
  • Chairman Philip Nothard says government ‘should understand that EVs are not just about new sales’
  • Calls follow worrying Car Dealer report into state of used electric market

Time 8:09 am, February 15, 2023

The Vehicle Remarketing Association (VRA) has called for additional support for the UK’s used EV market to be included in next month’s Spring Budget.

The trade body says more needs to be done to encourage motorists to go electric ahead of the government’s ban on new ICE sales in 2030.

Chairman, Philip Nothard, says that there is currently an imbalance in government incentives between new and used EVs.

He is now calling for new measures to be introduced that will boost used EV sales and spark life into the struggling market.

It comes after Car Dealer reported that used electric car prices have been caught in a vicious downward cycle, with experts warning of even more trouble ahead.

‘The government should be applauded for doing much in recent years to encourage uptake of new EVs, especially through low personal company car taxation,’ said Nothard.

‘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.

‘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.’

‘EVs are not just about new sales’

The VRA wants the government to take inspiration from existing schemes such as Scotland’s interest free used car loan.

It also pointed to a €2,000 subsidy in the Netherlands, a €1,000 payment in France and a grant of up to €6,000 in Germany as potential ideas that could be considered by the government.

Nothard added: ‘There are all many kinds 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.’

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Jack Williams's avatar

Jack joined the Car Dealer team in 2021 as a staff writer. He previously worked as a national newspaper journalist for BNPS Press Agency. He has provided news and motoring stories for a number of national publications including The Sun, The Times and The Daily Mirror.

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