The potential in the pre-loved
Why used EVs could be the next big test on the road to zero. By Toby Poston, chief executive, BVRLA
Toby Poston, chief executive, BVRLA
The UK’s road to net zero runs through its used vehicle forecourts. We cannot deliver a successful electric vehicle transition without a thriving, stable second-hand market. Right now, that market is under serious pressure.
Used EVs are the most cost-effective route to getting more drivers into cleaner vehicles. Yet in the absence of intervention, we are seeing supply outpacing demand, prices collapsing and confidence ebbing away. With policy changes and financial commitments this summer that focused on driving registrations of new electric vehicles, it is more urgent than ever that the used market gets the attention it needs to see momentum start to build.
It has been encouraging to see the Government taking the transition seriously. The Electric Car Grant (ECG) and infrastructure funding were announced in July, with a further extension to the Plug-in Van Grant earlier this month. Such measures will support EV uptake in some parts of the market, which is welcomed. We continue to be the voice of the industry with policymakers to ensure this and any further investment delivers maximum impact for fleets and drivers. That means focusing attention where it can have the biggest impact: the used market.
Why does this matter? Because almost every new EV sold today will be a used vehicle from the moment it leaves the forecourt. That supply is already surging. Increasing registration numbers today tell us what is coming to the used market in three years once initial lease agreements conclude. Buyers need confidence in the quality, reliability and value of those future vehicles, otherwise the whole system suffers. Low residual values make new vehicles more expensive to lease or finance, deterring buyers and slowing uptake at both ends of the market, unless further OEM discounts or government grants on new cars materialise.
More support for the new market won’t bring the long-term stability we need to see.
The evidence is stark. Over recent years, we have consistently seen values fall and the gap between demand and supply grow. This kind of volatility doesn’t just hurt resale values, it undermines business models, reduces consumer interest and risks stalling the transition at large.
Concerns are widespread and it is time to back the used electric vehicle market with targeted, pragmatic support. We're calling on government to introduce a market stabilisation scheme and take decisive action on four fronts:
1. Financial support for used EV buyers – including targeted grants and subsidies – to unlock demand from households and SMEs.
2. Investment in skills and training to ensure the retail, maintenance and repair sectors can support this new technology confidently.
3. National public information campaigns to boost consumer awareness and trust in used electric vehicles.
4. Clear, consistent battery health standards that give buyers the information they need to purchase with confidence.
“Used EVs are the most cost-effective route to getting more drivers into cleaner vehicles”
Targeted support for the used EV market will help the increasing demand keep pace with surging supply and delivers a strong return on public spending.
Timely intervention is essential to stabilise and strengthen the used EV market. There’s also an opportunity to learn lessons from other countries on best practice and adapt proven approaches to strengthen the UK’s used EV sector.
By 2027, the collapse in used EV values could lead to 290,000 fewer new electric vehicles being sold. With the ZEV mandate tying manufacturer targets directly to EV volumes, this would shrink the UK’s new vehicle market and present serious consequences for GDP, jobs and climate goals.
Dealers are cautious about stocking used EVs, consumers are worried about depreciation and funders are navigating rising risks. But, at the same time, manufacturers, leasing companies and fleets are being asked to invest billions in the net zero transition.
If we want the UK to lead in zero-emission mobility, we must start by establishing consistency and confidence in the used market. Without that stable footing, the entire EV transition hangs in the balance.
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