Fix battery concerns to boost used EV sales – report

Published by the Green Finance Institute (GFI), the report surveyed over 2,000 UK drivers and drew on contributions from 35 prominent car dealerships, motor finance lenders and lease companies. It found that although 61 per cent would purchase an EV, more than a quarter of that segment would not buy a used one, with concerns over battery health the biggest barrier. The general affordability of EVs was also cited as a significant drawback, as was the perception that the UK’s public charging infrastructure is not ready to support the EV transition.

While sales of new petrol and diesel cars will stop from 2030, the ban will not apply to the used car market, which makes up around 80 per cent of total UK sales. Boosting confidence in the second-hand EV market will be vital to speed up the overall transition away from ICE vehicles.

“Without the used market, the EV transition is destined to stall,” said Lauren Pamma, programme director at the Green Finance Institute.

“82 per cent of car sales in 2021 were second-hand in the UK. So, if we’re serious about driving EV adoption en masse, we need to channel this appetite for second-hand cars towards EVs. Our research makes clear that the demand for EVs is already there, but to unlock the used market, we need to boost consumer confidence on battery health, charging infrastructure, and affordability. In collaboration with the public and private sectors, the Green Finance Institute is already working to implement solutions that tackle these barriers.”

Among the solutions proposed by the GFI and backed up by data from the report are Battery Health Certificates (a standardised battery health certification scheme for used vehicles) and Battery Value Guarantees (a mechanism for EV batteries to have a guaranteed end-of-life value). The report also indicated gaps in public knowledge on things like Total Cost of Ownership of EVs compared with petrol and diesel cars, as well as cost and location of charge points and home-charging EV tariffs. Bridging those information gaps will be key to boosting confidence in general EV take-up and particularly for the used market.

“The vast majority of drivers buy a second-hand vehicle, so the used market is fundamental to the EV transition – it’s where mainstream electrification becomes affordable, and opens up sustainable motoring to the millions we need to make the switch in order to meet our targets,” said Marc Palmer, Brand & Insights director at Auto Trader, which contributed to the report.

“But the themes and barriers highlighted in the Green Finance Institute’s report echo what we’re seeing – battery and charging confidence are vital to mainstream adoption, so support for the used EV market is critical.”

The report, Used EV Market: The Key to Unlocking Net Zero,  can be read here.