The British Vehicle Rental and Leasing Association (BVRLA) has called for immediate government intervention to stabilise the used electric vehicle (EV) market.
Over the past two years, used EV values have plummeted by 50%, a trend that poses a significant threat to the sector’s confidence and the affordability of new EVs.
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While the depreciation of used EVs may benefit second-hand buyers, it places a substantial financial strain on finance companies and dealerships.
These entities are grappling with the rapid loss in value of their assets, which in turn is causing lease rates for new EVs to surge as companies attempt to mitigate potential losses.
The BVRLA has expressed concern that this negative cycle could intensify, with an influx of second-hand EVs expected to saturate the market, outpacing demand.
This imbalance is already impacting the sales of new EVs, with predictions from Oxford Economics suggesting that by 2027, the decline in used EV values could result in nearly 300,000 fewer new electric cars being sold.
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By GlobalDataBVRLA CEO Gerry Keaney remarked: “What is unprecedented and unsustainable is the scale of depreciation we are now seeing. These losses are being swallowed by the leasing companies and fleet operators that have championed the switch to zero-emission vehicles. They cannot continue to bear this burden alone.”
The association’s concerns were highlighted during its annual Parliamentary Reception, where it launched the #happyEVafter campaign. The initiative aims to enhance confidence, balance ownership costs, and improve accessibility.
This campaign, together with Auto Trader, EVA England, and the NFDA urges policy reforms, incentives, and industry-government collaboration to facilitate a smoother transition to electric vehicles.
The depreciation of used EVs has already led to 220,000 lost EV registrations and has left millions of tonnes of CO₂ in the road transport network.
On 17 September, the BVRLA will release a comprehensive report by Oxford Economics, detailing the extent of the challenges faced by the used EV market and its stakeholders.
