Strong demand for used EVs sparks higher RVs
Used demand for electric cars and vans is swiftly accelerating, resulting in stronger residual values.
The figures from Shoreham Vehicle Auctions (SVA) show that strong demand for used EVs in the second half of 2018 has continued into 2019. As an example, the Nissan e-NV200 van has appreciated in value year-on-year by around £1,000 – due in part to rising awareness of the April start of the Ultra Low Emission Zone in London.
SVA also said it’s seeing increasing demand for both owned and leased battery powered vehicles. Leased batteries were originally included in some electric cars to inspire confidence about battery life and the firm says that used cars with leased batteries are in high demand as dealers become confident they can sell vehicles on at a profit.
Alex Wright, managing director of SVA, said: “Previously, very few dealers understood the process of transferring the title of the vehicle and the battery lease within the used sector. This simple process was complicated by some residual value guides opting not to publish their values – however we know they have a very strong demand, and this is being realised by some very switched-on dealers.”
SVA itself has been working hard to give dealers the knowledge and confidence to sell electric vehicles to both trade and private buyers. The remarketing specialist teamed up with the Energy Saving Trust two years ago to introduce new training sessions on the south coast to dispel many of the myths surrounding EVs, helping to educate dealers on which customers will benefit most from buying and running an electric car.
The scheme, which scooped the Innovation in Remarketing award at the 2018 Fleet World Honours, was followed last May by a similar course for LCVs.
“We have helped support an increase in knowledge of EVs within the market and many progressive dealers have a good understanding of EVs, customer suitability and battery types,” explained Wright.
“There is a continued growth in trust in EV technology, as the Nissan LEAF has now been on our roads for nine years.
“EV numbers are now getting to the point where the used car sector is starting to see higher volumes passing through auction and the entire used industry must be prepared for that. This is our future, and the remarketing industry needs to keep pace in providing the service levels for EV that customers have come to expect from petrol and diesel used cars,” he added.