Used car market can help 17 million UK petrol and diesel drivers switch to EVs

If key issues hampering growth could be addressed, the UK could see a boom in activity, helping 17 million drivers to switch to electric vehicles.

These issues include battery health, affordability of EVs, charging infrastructure and access to reliable information were identified as the top barriers to the second-hand EV market.

The new report, from the Green Finance Institute, found that the UK’s electric transition could be fast-tracked by more than a decade if steps are taken to improve confidence.

Sales of new petrol and diesel cars will be banned from the end of this decade, followed by a similar ban for hybrid vehicles from 2035.

Despite the first ban being less than seven years away, the used car market – which is unaffected by the ban – still represents 82 percent of cars sold in 2021.

READ MORE: Tesla launches scheme to ditch petrol and diesel cars for £2,000 off new EV

This market is estimated to be worth £182billion by 2027, with the cost of living crisis forcing many drivers to look for cheaper, used alternatives.

In the “Used EV Market: The Key to Unlocking Net Zero” report, over 2,000 drivers and 35 leading companies concluded that 61 percent of motorists would purchase an EV.

However, over a quarter of drivers said they would be hesitant to buy a used electric car unless concerns around batteries, cost and the charging network were addressed.

Lauren Pamma, Programme Director at the Green Finance Institute, said: “Without the used market, the EV transition is destined to stall. So, if we’re serious about driving EV adoption en masse, we need to channel this appetite for second-hand cars towards EVs. 

“Our research makes clear that the demand for EVs is already there, but to unlock the used market, we need to boost consumer confidence on battery health, charging infrastructure, and affordability.

“In collaboration with the public and private sectors, the Green Finance Institute is already working to implement solutions that tackle these barriers.”

Of those who said they wouldn’t buy an EV, 62 percent listed the lifespan of a battery as their top concern, fearing that battery health would affect their driving habits.

Nearly three-quarters of the dealerships involved in the report recognised battery lifespan as one of the top consumer concerns in the context of used EVs.

Marc Palmer, Brand and Insights Director at Auto Trader, said there was an appetite for used EVs, but more could be done to accelerate this option.

He added: “The vast majority of drivers buy a second-hand vehicle, so 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.”

The Green Finance Institute report puts forward a number of solutions, including introducing a “battery health certificate”, which would give many drivers an additional boost of reassurance to invest in electric.

Another solution could be to ban the so-called “pavement tax”. The VAT rate on public charging is 20 percent, compared to home charging which attracts a rate of just five percent.

With many not having access to home charging facilities, drivers would be willing to switch, knowing that charging in public would not be expensive.