More confidence in used EV market ‘could accelerate transition’
The UK transition to electric vehicles (EVs) could be fast-tracked by more than a decade if measures are taken to enhance consumer confidence in the second-hand EV market, according to a report released today by the Green Finance Institute (GFI).
The report emphasises the potential for the used EV market to play a significant role in achieving the country’s net-zero goals by increasing EV adoption by up to 17 million vehicles.
It cautions that certain barriers affecting consumer confidence must be addressed, with concerns over battery health ranking highest among UK drivers, along with affordability and charging infrastructure concerns.
While the UK’s 2030 petrol and diesel car ban excludes the used car market, which accounted for 82% of car sales in the UK in 2021, it represents the dominant market nationwide and is projected to reach a value of £182 billion by 2027.
Encouraging and facilitating the purchase of affordable EVs in the second-hand car market is crucial to expedite the decarbonisation of road transport, meet climate targets, and ensure an equitable transition to widespread EV adoption, it said.
The report, titled Used EV Market: The Key to Unlocking Net Zero, surveyed more than 2,000 UK drivers and incorporated insights from 35 prominent car dealerships, motor finance lenders, and lease companies, including Black Horse, Octopus EV, Vertu, EVA England, and Evolution Funding.
The findings revealed more than 61% of drivers expressed a willingness to purchase an EV – but a quarter would not consider a used EV unless concerns regarding batteries, cost, and charging infrastructure were addressed.
Assurances regarding the health of second-hand EV batteries were identified as the most effective solution to encourage drivers to make the switch to electric vehicles, thereby significantly expediting the transition to net zero in road transport.
Lauren Pamma, Programme Director at the Green Finance Institute, highlighted the crucial role of the used market.
She said: “Without the used market, the EV transition is destined to stall. 82% of car sales in 2021 were second-hand in the UK. So, if we’re serious about driving EV adoption en masse, we need to channel this appetite for second-hand cars towards EVs.”
Pamma also said there was a need to boost consumer confidence in battery health, charging infrastructure, and affordability. The Green Finance Institute is collaborating with both public and private sectors to implement solutions addressing these barriers, she said.
The report also identified the main hurdles to used EV adoption. Among drivers who expressed unwillingness to buy a used EV, 62% cited concerns over battery lifespan as the primary barrier preventing the widespread uptake of second-hand EVs, a concern shared by industry experts. Additionally, 27% of respondents cited cost, including maintenance expenses, as a major factor.
Despite the significant increase in public charging points, which have grown by 523% over the past six years, surveyed drivers indicated a better understanding of the cost and locations of public charging infrastructure would encourage a switch to an EV.
Marc Palmer, Brand & Insights Director at AutoTrader, underscored the importance of supporting the used EV market.
He said: “The used market is fundamental to the EV transition – it’s where mainstream electrification becomes affordable, and opens up sustainable motoring to the millions we need to make the switch in order to meet our targets.
“But the themes and barriers highlighted in the Green Finance Institute’s report echo what we’re seeing – battery and charging confidence are vital to mainstream adoption, so support for the used EV market is critical.”
