Used Car Dealers Demand More EV Support to Boost Second-Hand Market

Used Car Dealers Call for Greater EV Support

Nearly three quarters of UK used car dealers believe additional government support is essential to stimulate demand for second-hand electric vehicles. This key finding comes from the latest Startline Motor Finance Used Car Tracker for January, which reveals significant concerns about the health of the pre-owned EV market.

Survey Reveals Dealer Sentiment on ZEV Mandate

The comprehensive survey gathered views from 60 used car dealers and 303 consumers, focusing specifically on the Zero Emission Vehicle (ZEV) mandate. The results show that 74% of retailers are calling for more assistance for the used electric market, while 70% believe further support is still needed for new EV sales, despite the introduction of the Electric Car Grant last year.

When questioned about the feasibility of current targets, dealer opinion appears divided. While 57% of respondents expect the ZEV mandate targets to be met, a significant 44% believe the government will soon be forced to revise these targets. Furthermore, 20% of dealers stated that targets for the rest of the decade are unrealistic, particularly in light of the impending ban on new petrol and diesel sales from 2030.

Industry Expert Weighs In on Findings

Paul Burgess, CEO at Startline Motor Finance, commented on the survey results, noting that the 2025 ZEV Mandate car targets are likely to have been missed by a handful of percentage points. He observed: "Against that backdrop, it's perhaps a little surprising that so many dealers are feeling optimistic the 2026 target of 33% will be met."

Burgess continued: "However, other indicators in our research have shown an improvement in sentiment among retailers toward electric cars in recent months and this finding is probably a reflection of that trend. Still, it's clear the ZEV Mandate is an area where dealer opinion is very much divided, with 44% believing the targets are unattainable in their present form and will need to be revised and relaxed."

Urgent Need for Used Market Intervention

Regarding the call for increased state support for EV sales, Burgess highlighted the significance of the findings: "The high level of support for used car market intervention revealed here is notable. There is an argument that the functioning of the used market is the weakest area of the whole electrification process at the moment."

He added a crucial insight that many dealers will recognise: "Dealers often report that while electric cars generally sell quickly, low values are persisting and even potentially worsening." This observation points to one of the fundamental challenges facing the sector – maintaining residual values in a rapidly evolving market.

The government has already indicated it will bring forward its review date for the ZEV mandate from 2027 to this year, suggesting that policymakers are aware of the challenges facing both manufacturers and retailers. As the 2030 deadline approaches, the debate around adequate support mechanisms for both new and used electric vehicles is likely to intensify.