Urgent action needed to support used EV market, Government told

A coalition of more than 30 companies has written to the Government to emphasise the need for urgent action to support the used battery electric vehicle (BEV) market.

An open letter has been delivered to the transport secretary, Heidi Alexander, highlighting how the Government can best direct the £1.4 billion committed last month (June) to ‘support continued uptake of BEVs, including vans and HGVs.

Coordinated by the British Vehicle Rental and Leasing Association (BVRLA), the letter has been signed by companies spanning vehicle demand and disposal, maintenance and insurance, charging providers and drivers.

They highlight how the used market offers the best value-for-money opportunity for Government to accelerate BEV uptake.

By underpinning vehicle affordability, equity of access, and the financial viability of new vehicle sales through targeted grants and subsidies, supporting the used BEV market will help more households and SMEs access a BEV, the letter says.

Signatories have also called for broader interventions that include investment in skills and training, public information campaigns, and clear battery health standards.

Delivering the letter, BVRLA chief executive Toby Poston said: “The used car market is nearly four times the size of the new one.

“Maintaining healthy demand and values for second-hand electric vehicles is essential if we want to deliver a sustained transition. The link between the new and used markets is critical.

“Low residual values increase the cost of financing and leasing new vehicles. This impacts all customers, especially consumers and SMEs, suppressing demand and eroding confidence across the BEV ecosystem.”

The letter comes in the wake of the BVRLA’s annual Road to Zero report, which claimed that the UK’s electric vehicle (EV) future hangs in the balance, with used values “falling relentlessly”, costing the fleet and leasing sector hundreds of millions of pounds.

The average used EV price has fallen 46% between 2021 and 2024, compared to 19% for cars with an internal combustions engine (ICE).

Poston continued: “We know the Government is listening. The £1.4bn committed to support EV uptake last month could make a difference.

“This letter is just one example of how we continue to work with industry and Government to highlight how this money can achieve the best return on investment.”

The letter was delivered to transport secretary yesterday (Thursday, July 10). In addition to highlighting the scale of the challenge, it invites further dialogue with the automotive industry to develop a supportive used EV environment.

Signatories of the open letter included: BVRLA, Association of British Insurers (ABI), General Insurance Policy Team, Association of Fleet Professionals (AFP), Autotrader UK, Electric Vehicles UK, Electric Vehicle Association (EVA) England, Institute of the Motor Industry (IMI), National Association of Motor Auctions (NAMA), National Franchised Dealers Association (NFDA), REA, Shoreham Vehicle Auctions, Vehicle Remarketing Association (VRA), Alphabet, Arnold Clark Finance, Arval UK, Ayvens UK, Cox Automotive Europe, Kinto UK, Leasys, Select Lease by Mobilize, Novuna Vehicle Solutions, Motability Operations, Pendragon Vehicle Management, United Rental Group (URG), Zenith, BYD UK, MG Motor UK, Polestar, VW Financial Services, AXA UK & Ireland, MJ Quinn, Sanctuary Housing and Speedy Hire.