The British Vehicle & Rental Association took to Downing Street to lobby on the need for support for the used electric vehicle market.
BVRLA CEO Toby Poston has highlighted the damage companies have suffered as a result of big declines in values used EVs.
“While many prefer to focus on the positive story of rising used EV sales, swift conversion rates and amazing bargains to be had, Lakshmi Moorthy @NickWilliams Thomas McLennan and I shared a more ominous perspective.
“We explained the impact of a multi-year collapse in residual values and the damage this is doing to balance sheets, new EV lease inflation and investor confidence across the entire EV transition,” Poston posted on LinkedIn.
In September last year the BVRA highlighted the draconian fall in used EV values, which alsp impacted hard on dealers.
The then CEO Gerry Keaney said at the time“Over the last two years, used EV values have dropped by 50% and are set to fall even further.”
“Falling values create a short-term benefit to used EV buyers in the short term but negatively impact finance houses and fleets.
The BVRLA said confidence in how well electric vehicles will perform in the used market is waning, putting pressure on finance companies to increase the monthly lease rates for new EVs to cover their potential losses.
It warned the “negative loop” is set to accelerate in the coming years. An ever-increasing wave of second-hand EVs will hit the used market, with insufficient demand to absorb it.”
