BVRLA launches campaign to improve used EV market

^{Image credit: BVRLA.}

Used electric vehicle (EV) values have fallen 50 per cent over the last two years, the British Vehicle Rental and Leasing Association (BVRLA) has found. The BVRLA is warning that the sector risks seeing further drops if no action is taken.

Earlier this week, the BVRLA launched its Happy EV After campaign in the House of Lords. The campaign has been developed in conjunction with Auto Trader, EVA England, and the NFDA. 

The plan outlines three key areas needing attention to set the used EV market up for long-term success.

These falling values create a short-term benefit to used EV buyers but come at a huge cost to the finance companies and dealers that own and sell these rapidly depreciating assets.

As a result, confidence in how well electric vehicles will perform in the used market is waning, putting pressure on finance companies to increase the monthly lease rates for new EVs to cover their potential losses.

BVRLA Chief Executive, Gerry Keaney, said: “Vehicles start depreciating as soon as they are sold, particularly over the first few years. This is a fact of life and the cost of this loss in value is absorbed into the vehicle finance agreements that are responsible for around 90% of all new car and van sales.

“What is unprecedented and unsustainable is the scale of depreciation we are now seeing. Over the last two years, used EV values have dropped by 50% and are set to fall even further.

“These losses are being swallowed by the leasing companies and fleet operators that have championed the switch to zero-emission vehicles. They cannot continue to bear this burden alone. The Government needs to intervene now to help bring confidence and stability back to this vital part of the automotive ecosystem. Together, we can deliver a ‘Happy EV After’.” 

The BVRLA said there are already signs that this used EV supply-demand imbalance is hampering demand for new EVs. By 2027, Oxford Economics believes that the collapse in used EV values will have resulted in nearly 300,000 fewer new electric cars being sold.