A prominent fleet software specialist has called for action to improve residual values for electric vehicles, as the financial exposure of fleets continues to grow.

FleetCheck said that while EV sales were actually quite healthy now, this was dependent on prices being around the same as their hybrid and petrol equivalents.

And CEO Peter Golding added that with the higher purchase price of EVs factored in, RVs remain far from healthy.

“With fleets operating more and more electric cars and vans, the potential losses are mounting,” he stated.

It’s an issue that the BVRLA has also been spotlighting. Its #happyEVafter campaign warns that used EV values have dropped by more than 50% over the last 24 months and also calls for intervention to boost demand in the used EV market, backed by its #UsedEVWeek initiative last month.

FleetCheck’s Peter Golding said probably the most important course of action was the provision of charge points to more potential used car buyers.

“If you can’t easily and cheaply charge an EV, you can’t become part of the market. Arguably half of motorists are currently shut out of buying an electric car because they live in an apartment or terraced house.

“The Government is putting more money into subsidising the installation of pavement charging gullies, which should make a difference, but more action is needed. Improving the infrastructure to widen charger accessibility is central to better RVs.”

But Golding added that this was a medium-term objective and said the Government could take more immediate action with direct support for the used EV sector.

“The electric new car scheme has been quite successful in boosting sales of new EVs and something similar would be welcome in the used sector. It doesn’t have to be a direct subsidy either – very low- or zero-cost finance could prove even more effective.”

He also said the fleet sector itself could take action to promote the advantages of used EVs, educating both potential buyers and dealers.

“There are already some leasing companies doing good work in this area. There remains a large proportion of potential buyers – and even potential dealers – who are resistant to EVs, sometimes because of widespread disinformation.

“Education campaigns designed to promote the benefits of EVs and dispel persistent myths have a role to play here. Buying your first EV is a big step for most people and providing a high level of reassurance is important.”

Fleets selling EVs into the used sector should also explore standard battery health checks with ex-company cars and vans, and even consider warranties that cover the battery and drivetrain items, according to FleetCheck.

Battery health certificates have increasingly been in the headlines in recent weeks. EV firm Generational published data last month showing that used EVs sell over a week faster with such certificates while BCA also posted figures showing how its EV Battery Grading service is driving confidence among used EV buyers.

Meanwhile, Motability Operations – the company that runs the Motability Scheme – says its new promise guaranteeing battery health of 90% or above has boosted UK dealers’ confidence and appetite to buy used electric vehicles.

FleetCheck’s Golding said such battery health checks were a vital move to boost RVs for fleet EVs.

“While it is becoming clear that battery failure or even rapid degradation is extremely rare, it remains a barrier to purchase for many. Battery health checks help remove that fear and could prove a crucial step in improving RVs. They should be standard industry practice,” he stated.