February’s Startline Used Car Tracker, which surveyed 302 consumers and 58 dealers, found that 62% of dealers said selling electric cars is an issue – an increase from 45% in December.
Other concerns include a reduction in desire for car ownership (33%, up from 28% in December) and staffing costs (28%, up from 24%).
Paul Burgess, CEO at Startline Motor Finance, said: “It’s not easy to say why dealers have suddenly become more negative about electrification after a gradual improvement in sentiment over quite a long period in our Tracker research.
“However, our guess is that the ZEV Mandate consultation and a range of other news such as the closure of the Stellantis plant in Luton have had a negative impact. We’re in an odd moment where electric car adoption is increasing quite quickly in both the new and used sectors but the mood music around them feels sometimes uneasy.
“The increase in concerns around staffing is more easily explained. The higher rate of employer National Insurance announced in the Budget will take effect soon and we know anecdotally that dealers are unhappy about that change.”
The research also found that worries over a range of other issues are subsiding.
This includes finance availability (48%, down from 50% in December), compliance (48%, down from 57%), stock shortages (45%, down from 48%), and premises costs (19%, down from 29%).
Burgess said: “While few of these changes are substantial month-on-month, they do suggest a slight lightening of their mood in some areas where dealers have held longstanding concerns.
“It’s especially interesting to see a big fall in worries over premises costs, where rates, rent and running costs have been rising for some time.”
