Support for the used electric vehicle market should feature in next month’s Spring Budget to pave the way for large volumes of vehicles in the future.

The VRA says incentives are needed to ensure used EVs are seen as a viable purchase

The Vehicle Remarketing Association said there’s an imbalance in government incentives between new and used EVs and that a healthy used car market where EVs are seen as attractive may well not develop without support.

VRA chair Philip Nothard added that recent government work to encourage uptake of new EVs was to be applauded, especially on low company car taxation, which was helping electric power to make up a significant proportion of new car sales.

But he warned the used car sector had been left to look after itself on EVs, which have seen dramatic price falls and variable demand in recent weeks, even with relatively low numbers.

And with very large volumes of EVs – including vans as well as cars – due to enter the used market in the next year or two from fleets, the VRA says more needs to be done to ensure a healthy 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.”

Nothard pointed to schemes such as Scotland’s interest-free used car loan, 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.

“There are all 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.”