Third of dealers say used EV market has steadied

• 36% of dealers say the market for used EVs has stabilised

• But 20% expect a further drop in EV values of up to 10%...

• …and 30% expect falls of 10-20%, according to July’s Startline Used Car Tracker

More than a third of used car dealers (36%) believe that the market for electric vehicles (EVs) has now stabilised after dramatic falls in values in the last year, new research reveals.

However, July’s Startline Used Car Tracker also shows that 20% of dealers expect to see further drops in value of up to 10%, while a further 30% believe that coming reductions will range between 10-20%.

Also, while 28% agree with the statement that the market is finding its level, 24% say that consumer demand for EVs remains limited. Just 8% are concerned about the rapidly rising number of electric cars and vans that are soon expected to reach the used sector.

Paul Burgess, CEO at Startline Motor Finance, said: “The last year has been a turbulent one for the used EV market and many dealers have been left bruised by the reductions in values of stock that they have been holding.

“The picture now is pretty mixed, our research indicates. While more than a third think that the situation has stabilised, quite significant numbers believe that further falls are likely and some that those reductions will be pretty serious.

“An interesting point is that very few seem to be concerned about the huge numbers of ex-company car EVs that will quite soon start to hit the used market in comparatively large quantities. These will represent a significant step up in volumes and there will need to be a corresponding increase in demand if values aren’t to further suffer.”

There are other interesting findings about dealer attitudes to EVs in July’s Startline Used Car Tracker. This month, just 12% said that they didn’t stock EVs at all compared to 30% in May, while 22% say customer demand for EVs is now steady, against 2% three months ago.

Paul said: “These numbers show quite a rapid change in dealer attitudes towards EVs. More retailers are stocking these vehicles while there is increased confidence around consumer demand. There is a chance that we are beginning to see, in these figures, a normalisation in the EV market following the last year.”

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, 319 consumers and 50 dealers were questioned.