A coalition of greater than 30 automotive business organisations is asking for rapid motion to help the used battery electrical car (BEV) market.
In an open letter delivered yesterday to Transport Secretary Heidi Alexander, the group urged ministers to prioritise the used sector within the allocation of the £1.4 billion pledged final month to spice up electrical car uptake throughout vehicles, vans and HGVs.
The letter, coordinated by the British Car Rental and Leasing Affiliation (BVRLA), was backed by organisations throughout the EV ecosystem, together with the Nationwide Franchised Sellers Affiliation, leasing companies, insurers, upkeep suppliers, remarketing specialists, and producers similar to BYD, MG Motor UK and Polestar.
The coalition argues that focused help for the second-hand EV sector presents one of the best value-for-money strategy to accelerating BEV adoption, particularly for households and small companies. The used market is sort of 4 occasions the scale of the brand new automotive market, making it a vital lever in reaching the UK’s net-zero transport ambitions.
BVRLA chief government Toby Poston mentioned: “Sustaining wholesome demand and values for second-hand electrical automobiles is crucial if we need to ship a sustained transition. The hyperlink between the brand new and used markets is vital.
“Low residual values enhance the price of financing and leasing new automobiles. This impacts all prospects, particularly customers and SMEs, suppressing demand and eroding confidence throughout the BEV ecosystem.”
Alongside monetary help – similar to focused grants and subsidies to spice up affordability – the letter requires broader interventions, together with funding in abilities and coaching, constant battery well being requirements, and public schooling campaigns to extend shopper confidence.
The enchantment follows the BVRLA’s newest Highway to Zero report, which warned that the UK’s EV transition is “hanging within the stability” resulting from plunging used BEV values. Common second-hand electrical automotive costs have fallen by 46% since 2021, in contrast with a 19% drop for petrol and diesel automobiles.
Poston added: “We all know the Authorities is listening. The £1.4bn dedicated to help EV uptake final month might make a distinction.
“This letter is only one instance of how we proceed to work with business and Authorities to spotlight how this cash can obtain one of the best return on funding.”
The signatories embody main leasing and finance suppliers similar to Arval UK, Alphabet and Zenith, in addition to business our bodies together with the Affiliation of British Insurers, the Institute of the Motor Business, Autotrader UK, EVA England and the Car Remarketing Affiliation.
The coalition is now searching for lively dialogue with ministers to form a secure, supportive setting for the used EV sector – one they are saying is crucial for a good and inclusive zero-emission future.
Analysis launched final 12 months by motor finance agency Startline revealed that sellers imagine the used automotive market wants extra reasonably priced EVs, and one in 4 was involved that there are too many costly, government EVs available in the market.
