The need for more consumers to purchase new electric vehicles (EVs) to provide suitable stock for the used market was a key point discussed at the September meeting of the Vehicle Remarketing Association (VRA), held at Arval UK’s Swindon headquarters.
Andy Webb, head of sales at Brego, a vehicle valuation and analytics company, highlighted the issue of market imbalance, explaining that the dominance of fleet sales in the EV sector has led to an oversupply of medium and large electric cars, with a shortage of smaller models that everyday buyers typically seek.
“We’re seeing a skewing of the used EV market towards manufacturers and models for which there is limited demand,” Webb said, adding that this trend has been a major contributor to the recent collapse in EV values. He noted that while fleets are beginning to introduce smaller, more affordable EVs, the used market will not function properly until consumer demand for new EVs grows.
The meeting, which included an EV ride-and-drive event featuring new models from BYD and used examples from brands such as Audi, BMW, and Tesla, also featured industry experts providing insights on EV remarketing.
Martin Miller, founder of EV Experts, reported positive trends, noting that his dealership’s unit profit had risen by 18% between June and September. “The kind of price parity we are now seeing between comparable EVs and petrol cars is important,” he said, highlighting rising fuel prices as a key driver of increased consumer interest in EVs.
Stuart Chamberlain, head of B2B and partnerships at Arval UK, emphasised the importance of detailed descriptions when remarketing EVs, given variations in battery performance between otherwise identical models. “Providing a detailed description is essential,” Chamberlain explained, citing examples of identical vehicles with a 100-mile range difference, which can affect trade values by as much as £2,500.
Other discussions at the event included battery health checks, which Alex Johns of Altelium described as an emerging factor in the used EV market. He noted that data shows battery degradation is slower than consumers often expect, offering reassurance to potential buyers.
VRA chair Philip Nothard concluded that while used EV sales have doubled year-on-year, they still account for only a small proportion of total sales. However, he expressed optimism about the future, citing a growing number of EVs entering the used sector as company fleets defleet more vehicles. “The situation around EVs has eased considerably,” he said, reflecting the sector’s growing confidence.
“VRA highlights need for more new EV sales to bolster used market in UK” was originally created and published by Motor Finance Online, a GlobalData owned brand.
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