ABM Q4 - Flipbook - Page 12
FEAT U R E
USED CAR MARKET
have electrified purely based on the
value proposition. The same is true for
fleets, especially those buying outright.
A fleet leasing a new EV must take the
depreciation hit, but buying that same
car at three years old is often a bargain.
Smyth says: “Lower residual values can
be positive [...] because they can make
EVs more accessible to a wider range of
buyers. As the used EV market continues
to develop, there’s a real opportunity to
bring EVs within reach of customers who
may not have considered them when
buying new.”
There is evidence, however, that change
is on the horizon. In July, Autotrader
found that retail prices for three- to
five-year-old EVs were up 10.2% year-onyear, driven by strong consumer demand.
Pontin is positive about long-term
prospects, saying: “We see the price of
EVs as a whole increasing over the next
three years. We had that big drop off in
pricing, and it will start to come up as
more people adopt used EVs. It will give
consumers a bit more stability."
He adds: "We're driving people out of
fossil fuel cars with heavier taxation and
higher fuel costs.”
It is important, however, not to
mistake signs of progress for a fully
resolved market. As ever, challenges
remain, highlighted by the fact that
the Government is now reviewing the
ZEV Mandate. Pontin believes that,
at least as far as the used market is
concerned, this could be damaging in
itself, saying: “We've already pushed
12
AUTOMOTIVE BUSINESS
Q4 2026
the legacy manufacturers
into a corner and made
them make significant
investment and production
changes to try and meet
these targets. To suddenly
say to them ‘OK, you've
got another five years’,
what kind of messaging
is that giving? We need to
stick to it. If you talk to
the big dealer groups and
manufacturers, they're
angry that they were put in
that position to start with,
but they've got on with it.
It's just very difficult and
confusing for business.”
There’s a
real opportunity
to bring EVs
within reach of
customers who
may not have
considered them
when buying new"
Continuity
Five years ago, it seemed the dealership
experience itself was under threat. Much
of the car buying process had been
forced online, and dealers worried that
consumers would be unwilling to go back
to the comparatively old-fashioned way
of doing things, coupled with a move to
the agency model by some OEMs.
The death of the dealership did not
materialise, though. Customers returned
after restrictions eased, and surveys
suggest a general preference for the
experience itself. In August 2025,
AutoTalker found that 72% of buyers
prefer to purchase at a dealership.
Palmer thinks the status quo will
remain for the foreseeable future:
“People seem to have gone back to
The price is right:
Auction houses
are part of a range
of trusted sources
used by dealers to
source valuable
used car stock at a
reasonable cost
