Why does the used electric vehicle market require government support?

Of course, electric vehicles are amazing because of their low environmental impact. The UK’s goal is to completely phase out new petrol and diesel sales by 2030.

For a healthy Electric Vehicle (EV) market to thrive in the UK, there needs to be more done by the government, the Vehicle Remarketing Association (VRA) states.

According to the trade body, there is an imbalance between new and used EVs and government incentives.  As EVs enter the used market in the up and coming years, more support will be needed to drive the high demand.

Electric power has taken up a significant proportion of new car sales in recent years, due to the government's good efforts of encouraging the uptake of new electric vehicles. Low personal company car taxation has been a contributing factor to the success.

Subsequently, the used car sector has suffered being left to look after itself. With dramatic falls in prices for electric vehicles in recent weeks, demand is growing for the small number of electric cars entering the used car market.

In the next few years, the volume of electric vehicles entering the used car market is expected to increase. However, in order for a healthy market to exist when the time comes, incentives need to be put in place.

Whilst brand-new electric vehicles are widely attractive for company car drivers due to the low tax, this factor doesn’t apply to private and used buyers.

So far, there is plenty of evidence suggesting that used car buyers will invest in an electric vehicle in the future if it's priced appropriately as well as makes sense practically for them. If money were no object, 69% of UK residents would buy an electric vehicle.

With this in mind, the government needs to create and develop more incentives for car buyers to choose an electric vehicle over a diesel or petrol car. The government need to work on making electric vehicles more viable purchase.

Currently, Scotland offers used Electric vehicle buyers an interest-free loan. 

Meanwhile, in the Netherlands, a €2,000 subsidy is available, a €1,000 payment in France and a grant of up to €6,000 in Germany.

Whilst the UK aims to have 300,000 charging points around the country by 2030, more needs to be done on top of this. The UK government need to get their thinking caps on for new ways of incentivising used EV buyers.