Action is needed to improve EV residual values, with the financial exposure of fleets growing, according to Fleetcheck.
The software company’s CEO Peter Golding said that while there was strong evidence that used EVs were now selling faster than they had previously, prices of the vehicles remained stubbornly low.
He said: “The used market has reached a position where EV sales are actually quite healthy providing their prices are around the same as hybrid and petrol equivalents. At that level, customers don’t seem to be in short supply.
“While that is a better situation than having a shortage of buyers, it does mean that considering the higher purchase price of EVs, RVs remain far from healthy. With fleets operating more and more electric cars and vans, the potential losses are mounting.”
Golding said that action was needed to increase demand and boost RVs, with the most important probably being the provision of charge points to more potential used car buyers.
He said: “If you can’t easily and cheaply charge an EV, you can’t become part of the market. Arguably half of motorists are currently shut out of buying an electric car because they live in an apartment or terraced house.
“The government is putting more money into subsidising the installation of pavement charging gullies, which should make a difference, but more action is needed. Improving the infrastructure to widen charger accessibility is central to better RVs.”
Golding added that there was also more immediate action the government could take, such as introducing an equivalent of the Electric Car Grant for used EVs. However, he said there was also more that the fleet sector itself could be doing to promote used EVs.
He said: “There are already some leasing companies doing good work in this area. There remains a large proportion of potential buyers – and even potential dealers – who are resistant to EVs, sometimes because of widespread disinformation.
“Education campaigns designed to promote the benefits of EVs and dispel persistent myths have a role to play here. Buying your first EV is a big step for most people and providing a high level of reassurance is important.”
Golding added that battery health checks and warranties should also be considered.
He said: “While it is becoming clear that battery failure or even rapid degradation is extremely rare, it remains a barrier to purchase for many.
“Battery health checks help remove that fear and could prove a crucial step in improving RVs. They should be standard industry practice.”
