Automotive Business Magazine – Q3 2026 – Digital edition - Flipbook - Page 16
OPI N I O N
EV
The future has arrived
→ Sam Varney is an associate at Birketts LLP
C
harging infrastructure,
consumer confidence,
Government support and
affordability have contributed
to more than two million EVs
gracing UK roads as of April
2026. But this article is not
about new EVs; it is about
used ones.
Since the ZEV Mandate in 2024,
manufacturers have been shifting
production to meet the legally binding
target that 80% of new cars sold must be
zero emission by 2030 – 100% by 2035.
The used EV market is expanding
rapidly. Society of Motor Manufacturers
and Trader (SMMT) data shows battery
electric vehicle transactions rose by
around 46% in 2025, far outpacing the
wider market, while petrol sales grew
modestly and diesel continued to decline.
Price convergence has aided this, with
most used EVs having a similar price to
ICE vehicles.
In July 2025, the Government launched
an Electric Car Grant (ECG), providing
UK households discounts of up to £3,750
when they upgrade or switch to electric,
shifting supply at the top of the market.
But the strongest driver of used EV
demand has been a greater choice.
The used EV market has benefited from
increased manufacturer competition.
Despite this, affordability is still the
central barrier to a purchase. Research
indicates that nearly two-thirds of
consumers are open to making the
switch to EV, but relatively few used
EVs fall below the £10,000 price point,
especially when compared to the
availability of lower priced petrol models.
This is precisely where the opportunity
resides. Used EV demand is steadily
growing and historical concerns over
charging infrastructure are being eased,
illustrated by platforms such as Zapmap.
The growth of rapid and ultra-rapid
charging is helping reduce concerns.
Dealerships also benefit from the fact
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AUTOMOTIVE BUSINESS
Q3 2026
used EVs are selling at a faster rate than
the market average.
Further, battery degradation is not
the systemic risk once assumed. When
coupled with most manufacturers
offering warranties of at least eight
years or 100,000 miles, this is another
reason for growing consumer confidence.
However, there is one commercial
caveat to this consumer shift. EV buyers
have less brand loyalty, with fewer
returning to the same manufacturer
for their next purchase compared to
their ICE competitors. This presents an
opportunity for independent retailers.
Finally, there is a growing demand
squeeze for up to three-year-old used
EVs. With the ECG subsidy aiding brand
new EV sales, and greater affordability
for the five-year-old EVs, there is reduced
demand for the ‘almost new’ category.
This squeeze claim is supported by
new data from Cap hpi, which shows
a modest 1.2% decline in the value of
three-year-old, 60,000-mile EVs. While
inclusive of ICE models, and against a
backdrop of wider economic uncertainty
and global tensions, the used car market
continues to hold steady. The age cohort
which fell the least was five-year-old
models, which only saw a 0.8% drop, with
10-year-old models remaining flat.
Looking ahead, further EV adoption
needs to occur for the 80% zeroemissions target in 2030, and with
growing consumer acceptance and
price convergence, used EVs are a prime
opportunity for dealerships.
Dealers should assess their existing
stock mix to ensure that it reflects
demand for three- to five-year-old EVs.
Battery health reporting, warranties and
consumer information are becoming
increasingly important to customers,
and so dealerships should review their
sales processes, including their finances,
advertising, after sales and customer
complaint services to align with shifting
consumer interests.
