Mismatch in demand for used EVs and reality, says Motorway

UK car buyers are interested in a used electric vehicle, but confusion and uncertainty is continuing to drive down overall used prices, according to the latest data from Motorway. The online only used car marketplace analysed data as part of its Inside Track report, which shows used hybrid vehicles sale prices increased by 2.85% in Q2. This is in contrast to a 8.1% drop for EVs over the same period.

However, Motorway’s own research shows eight-in-10 Brits (82%) are willing to pay a premium for a used-EV, with a third (32%) actively considering purchasing. The research was conducted by Opinion Matters, among a sample of 2,005 UK respondents aged over 16. There’s obviously a correlation between dropping prices and increased demand, but James Wilson, Motorway chief operating officer said there is a contrast between motorists wanting to make the switch and the reality of industry sentiment around fully electric vehicles.

He said: “Motorway’s research reveals a contrast between Brits wanting to invest in more sustainable second-hand vehicles, and the reality of industry sentiment around fully electric vehicles. “EVs are selling for less on our platform than in previous quarters, but we’re seeing an increase in demand for hybrid vehicles from dealers. “Although it’s positive that we’re heading in the right direction affordability-wise, if the UK stands a chance of hitting its sustainability goals, there needs to be much more of a focus on building and maintaining an EV infrastructure that reassures buyers, both trade and consumer.

“The new government has an integral role to play in supporting the transition to used EVs, and we’d like to see this higher up on their agenda. “The missing puzzle piece is for the EV infrastructure in this country to be more supportive of this switch.”

A call to action for Government to invest in EV infrastructure

Consumer perception of the affordability of used electric vehicles is positive, with four-in-10 (41%) citing general affordability, including running costs, as a reason why they’re seriously considering purchasing. Additionally, consumers (35%) referenced that the lower prices for used EVs, compared to new, is another reason why electric vehicles are a serious consideration for them.

Sustainability (29%) rounded out UK consumers’ top three reasons for considering a used EV, showing this remains high on the public’s agenda despite continued cost-of-living pressures. However, while consumer demand and sentiment around affordability is heading in a positive direction, factors mirroring the House of Lords Environment and Climate Change Committee’s 2024 inquiry into EV strategy were cited as key concerns about making the switch. Concerns about battery health (39%) and ‘range anxiety’ (33%) topped the list among consumers, as well as charging speeds (29%) and local areas lacking in sufficient charging infrastructure (18%).

One-in-five potential buyers (20%) are also concerned about used EV residual values, as well as whether local garages have the skillset to maintain an EV (17%).

Despite consumers and the industry calling on the government to support the switch to EVs in order to meet sustainability commitments, EVs were unmentioned in the recent King’s Speech.

A third (32%) of Brits want to see the new administration invest more money into EV infrastructure like charging points, while grants for buyers (27%) and tax-breaks for manufacturers (20%) that make EVs more affordable were also high on the public’s wishlist.