97% of dealers say more support needed from finance providers for EV funding
52% also report that their lenders are less keen to finance EVs
45% say that higher interest rates are charged for EVs
21% point out their lenders want higher deposits for EVs
Results are worse than when the same question was asked 12 months ago, shows June’s new Startline Used Car Tracker
Almost all dealers (97%) surveyed in June’s Startline Used Car Tracker say that more support is needed from motor finance providers for electric vehicle (EV) funding.
In the research, 52% say their lenders are less keen to finance EVs, 45% charge higher finance rates and 21% want higher deposits. Also, 14% say their lenders won’t finance EVs at all.
The same question was asked in the Startline Used Car Tracker 12 months ago, and the situation appears to have deteriorated.
Then, only 58% of dealers said that more support was needed from dealers with 41% reporting their lenders were less keen to finance EVs, 10% wanting higher deposits from buyers and 5% charging higher interest rates. At that time, just 5% said their lenders refused to finance EVs.
Paul Burgess, CEO at Startline Motor Finance, said: “What has happened over the last year is that a collapse has largely continued in EV values, something that has understandably had a detrimental effect on lender appetites for funding these cars and vans.
“We’ve moved from a situation where EVs were something of an unknown quantity for lenders to one where the information that became available about their performance interms of risk was almost all bad. Many have had a bad experience with EVs.”
However, Paul said, it was clearly a situation that needed to be resolved, with increasing numbers of EVs starting to appear in the used sector.“The fact that essentially all the dealers in our survey believe that there are issues around EV funding almost certainly indicates that there are problems that need resolving. Arguably, this will happen naturally over time as the EV market matures with values becoming much more stable and predictable as a result.
“However, more may need to be done in the shorter term. As commercial businesses, there is a limited amount that lenders can do in this area but there has been discussion of increased government support in this area. Notably, interest free loans are already available for used EVs in Scotland.”
The Startline Used Car Tracker is compiled monthly for Startline Motor Finance by APD Global Research, well-known in the motor industry for their business intelligence reporting and customer experience programs. This time, 301 consumers and 58 dealers were questioned.
About the Startline Used Car Tracker
The Startline Used Car Tracker was launched in April 2022 to produce essential attitudinal data about the used car sector over time. Each month, it asks consumers about their propensity to buy, fuel choices and the factors that will affect used car purchases, as well as questioning dealers about their feelings regarding the prospects of the market, the challenges facing them and their online offering.
The research is carried out for Startline by APD Global Research, well known in the motor industry for their business intelligence reporting and customer experience programs.
About Startline Motor Finance
Founded in 2013, Startline is one of the UK’s leading motor finance companies, providing flexible solutions to around half of the top 50 franchise dealers and 70% of the top 50 independent car retailers measured by turnover, as well as accounting for more than 2% of the motor finance market by volume.
It aims to deliver market-defining levels of customer service, compliance, innovation and insight. The company is headquartered in Glasgow where it employs more than 200 people and has a comprehensive sales presence throughout the whole of the UK.