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Fully functioning used car market will help drive EV sales says Deloitte

04 August 2023

Jamie Hamilton, automotive partner and head of electric vehicles, comments on new car registration figures from the Society for Motor Manufacturers and Traders (SMMT):

“New car sales continue to show strong growth, despite economic head winds and rising interest rates affecting the affordability of monthly payments, resulting in some consumers delaying large purchases.

“As battery electric vehicles (BEV) sales grow and expand their market share, the uncertainty of EVs’ residual values is contributing to the rising monthly cost of new cars.

“For the UK to benefit from reduced carbon emissions from the automotive sector, a fully functioning used car market will need to be more affordable for different segments of the market. We know from Deloitte research that 42% of UK drivers seeking to switch to a fully electric vehicle look for a purchase price of £20,000 or below. New propositions targeting this specific segment, such as used car salary sacrifice schemes, can help stimulate growth in this area.

“With an increasing range of EV models coming to the UK market, including those offered by new brands, consumers with petrol and diesel cars may be encouraged to switch over. A lack of charging infrastructure however still remains a real issue for people. For EVs to integrate further into everyday life, greater accessibility to public charging points is still required. We also need to make it more convenient for customers to make use of those charging points already in place."