Support for used-EV market key ask from Budget, says AFP

Support for the used electric vehicle (EV) market is the number one aspiration from November’s Budget for the Association of Fleet Professionals (AFP).
 
Chair Paul Hollick pointed out that new electric car grants introduced in July had been relatively successful in stimulating retail interest – and a similar move could play an essential role in the second-hand sector.
 
“While the scheme has not been perfect, it appears to be helping make new electric cars more accessible through both direct grants and widespread, substantial discounting being prompted by increased competition.
 
“Really, we’d like to see a corresponding initiative for the used sector. While values for second hand EVs have stabilised and the era of large month-on-month drops appears to thankfully be over, consumer interest is still variable and residual values remain simply too low. 
 
“Some form of support that helps to stimulate buyer enthusiasm – which could be anything from direct grants to interest-free loans – would be very well received by fleets.”
 
Paul said that other EV measures the AFP would like to see in the Budget included scrapping VED for electric cars and vans.
 
“The increases for electric cars that took effect from April have added quite heavily to their running costs and created a disincentive, while the introduction of VED for electric vans has been counterproductive in a market that is struggling to find its feet.
 
“We’d also like to see more support for kerbside charging. It appears a relatively cheap and effective solution for people living in terraced houses or apartments has now been identified in the shape of cable gullies, and there should be a commitment to a much wider implementation than the £25 million already allocated. 
 
“There is also a need to encourage more ‘destination’ charging at hotels and other facilities which, according to feedback from our members, is a hole in current network provision that is becoming increasingly apparent over time.
 
“Additionally, for EVs, we’d like to see a reintroduction of charging infrastructure grants for businesses. Deadlines for the government’s earlier scheme made it next to impossible for those interested in applying to access the fund – something that caused consternation among fleets – so it is presumably unallocated and still potentially available.”
 
Finally, he added that an ongoing complaint within the AFP was that potholes remained an issue, often causing damage to company cars and vans.
 
“This was a problem recognised in the last Budget with an extra £500 million allocated but identifying where this money is being spent is difficult because the condition of our roads doesn’t appear to be noticeably improving. We’d like to see more visible progress.”
 
Paul suggested that the Chancellor also consider measures from the AFP's 2024 Tax and Regulation Manifesto, noting the government has already implemented some of its proposals.
 
“They’ve now been in power for just over a year and we do believe this is a government that often listens to fleets and the wider motor industry, taking action such as the recent split level AER rates. However, there is a shortage of money to spend and many of the issues that we’d like to see resolved require both funding and time.”