Used car dealer anxiety surrounding the impact of electrification has plummeted to a 45-month low amid rising demand for electric vehicles.

Just one in three (33%) used car dealers say they are worried about electrification – the lowest figure since October 2022, according to Startline Motor Finance’s ongoing analysis.

The monthly research asks dealers to name the biggest challenges facing used car retailing. While the switch to electric vehicles often tops the list, it fell to fourth place in August.

Paul Burgess, CEO at Startline Motor Finance, said extensive recent market feedback highlights rising demand for EVs. This shift underlines how the sector is beginning to show increasing maturity.

“Dealer attitudes towards electric cars were understandably affected by the collapse in residual values seen a few years ago but increasingly, it appears that memory is fading and EVs are being seen as an opportunity rather than a problem.”

New market intelligence underscores why dealer memories of that collapse are fading.

According to data from auto data provider Cazana, used EV residual values surged by nearly 7% between March and July 2026. At the vital three-year/36,000-mile defleet benchmark, used EV values rose by 1.6% in July alone, translating to an average price increase of roughly £1,500 per vehicle over a four-month period.

This strong value performance directly contrasted with petrol and diesel models, which dipped slightly by 0.1%. Driven by volatile Middle East events keeping fuel prices high at the pumps, buyer demand has pivoted sharply toward electric alternatives.

Core corporate models such as the Peugeot E-208, Tesla Model Y, Volkswagen ID.4 and Mercedes-Benz EQB are now flying off forecourts, retailing in under 14 days.

Instead of EV anxieties, dealer concerns now centre around pressing operational and economic bottlenecks. According to Startline’s research for August, finance availability (55%) and cost of technology (45%) are this month’s biggest challenges, while stock availability (43%) is also a concern.

The Startline Used Car Tracker is compiled monthly for Startline Motor Finance by APD Global Research, well-known in the motor industry for their business intelligence reporting and customer experience programmes. This time, 300 consumers and 60 dealers were questioned.