The vast majority (83%) of car dealers have called for a scrappage scheme in the UK to support the sales of electric vehicles (EV).
According to September’s Startline Used Car Tracker, 60% of dealers believe the UK Government should encourage the adoption of EVs and 61% said that they need to be as affordable as possible. Just 6% think the UK Government shouldn’t interfere in the market.
But 26% believed that EVs are priced out of reach for too many people, and 21% think there are too many older, polluting cars on our roads.
Only 10% of dealers said it’s more environmentally friendly to keep existing cars on the road, with 8% pointing out that EVs have already become more affordable.
Previous scrappage schemes have been successful. The UK Government’s 2009 scheme supported nearly 400,000 vehicle orders. According to the Society of Motor Manufacturers and Traders (SMMT), around 70% of vehicles bought through the scheme represented genuinely additional sales that would not have happened otherwise.
The London-wide ULEZ scrappage scheme removed or upgraded over 53,000 polluting vehicles, meeting its environmental targets before it closed in September 2024.
The Startline Used Car Tracker is compiled monthly for Startline Motor Finance by APD Global Research. Around 300 consumers and 60 dealers were questioned for the latest study.
Paul Burgess, CEO at Startline Motor Finance, said:
“The electric new car market is already supported by the government with dual level subsidies, but dealers clearly feel that a scrappage scheme would have a wider impact.
“It’s easy to see the advantages. The current scheme reduces the price of a new electric car but it is effectively invisible – consumers don’t see the discount. A scrappage scheme has a much higher profile. It’s more dramatic. With a new government in place, this could be the moment for a change of approach.”
“It appears the number of dealers against the idea of a scrappage scheme is relatively low. While dealers today view electric cars as increasingly commercially viable, most still want to see the market remain supported by the government.”
Image courtesy of Green Car Guide
