Summary
- Andy Webb from Brego highlighted the issue of market imbalance in the used EV market
- Fleet sales have led to an oversupply of medium and large electric cars, while there is a shortage of smaller models that everyday buyers prefer
- Martin Miller from EV Experts reported a rise in unit profit due to price parity between EVs and petrol cars
- Stuart Chamberlain from Arval UK emphasized the importance of detailed descriptions in remarketing EVs, given variations in battery performance
- VRA chair Philip Nothard expressed optimism about the future of the used EV market, citing a growing number of EVs entering the sector from company fleets as a reason for confidence
Article
The September meeting of the Vehicle Remarketing Association (VRA) at Arval UK’s Swindon headquarters highlighted the need for more consumers to purchase new electric vehicles (EVs) to provide suitable stock for the used market. Andy Webb, head of sales at Brego, pointed out the market imbalance in the used EV sector, with an oversupply of medium and large electric cars due to the dominance of fleet sales and a shortage of smaller models that everyday buyers typically seek. This imbalance has contributed to the recent collapse in EV values, and Webb emphasized that the used market will not function properly until consumer demand for new EVs grows.
The meeting also featured an EV ride-and-drive event showcasing new models from BYD and used examples from brands like Audi, BMW, and Tesla. Industry experts shared insights on EV remarketing, with Martin Miller from EV Experts reporting positive trends such as an 18% rise in unit profit between June and September. Price parity between EVs and petrol cars, driven by rising fuel prices, has increased consumer interest in EVs. Stuart Chamberlain of Arval UK stressed the importance of detailed descriptions when remarketing EVs, particularly due to variations in battery performance between otherwise identical models that can affect trade values significantly.
Discussions at the event also touched on battery health checks, with Alex Johns from Altelium highlighting it as an emerging factor in the used EV market. Data shows that battery degradation is slower than consumers often expect, offering reassurance to potential buyers. VRA chair Philip Nothard noted that while used EV sales have doubled year-on-year, they still only account for a small proportion of total sales in the UK. However, he expressed optimism for the future, citing a growing number of EVs entering the used sector as company fleets defleet more vehicles. He mentioned that the situation around EVs has eased considerably, reflecting the sector’s growing confidence.
Overall, the key takeaway from the VRA meeting was the need for more new EV sales to bolster the used market in the UK. The imbalance in the market, with an oversupply of larger EVs and a shortage of smaller models, has led to a collapse in EV values. With rising fuel prices driving consumer interest in EVs, detailed descriptions when remarketing EVs are crucial due to variations in battery performance. Battery health checks are also seen as an emerging factor in the used EV market, with data showing slower degradation than expected. Despite the challenges, there is optimism for the future of the EV sector, with a growing number of EVs entering the used sector as company fleets defleet more vehicles, easing the situation around EVs and boosting confidence in the market.
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