June 24, 2024


Where Innovation Lives

V12 Vehicle Finance advises dealers to aim for 10% EV stock

2 min read


Used car dealers are being told to plan for the electric vehicle revolution and become forward-thinking businesses right now, working towards a 10% EV stock ahead of an inevitable rise in demand.

V12 Vehicle Finance is urging dealers to start planning ahead, after the highest number of new electric vehicle registrations were recorded in February 2022 (21,977 compared to 23,952 petrol and 3,922 diesel models for the same period).

Tim Maffey, Finance Director said that ever-increasing fuel costs, which are predicted to hit £2 per litre despite a recent 5p-a-litre tax cut, were accelerating the change to EVs.

He said: “If there is one piece of advice we’d give to used car dealers, then it would be to picture a world where EVs will be commonplace and to start future-proofing now. At the moment, dealers aren’t selling many used EVs because there aren’t many on the market. But this won’t be the case for long and it’s important for them to be prepared with a robust digital sales function so that when more stock is available, they can sell them to a forward-thinking customer base.”

V12 Vehicle Finance reports:
• 59% of UK automotive executives say that by 2030 most vehicle sales will take place online; 56% say that EVs will make up between 70-100% of all new sales in western Europe
• Fuel savings for switching to electric have hit a record high of £779 a year on average for petrol drivers – £738 for diesel drivers
• A survey of 2,000 motorists by Bridgestone has confirmed that UK consumers are beginning to accelerate towards electric vehicle travel, with 67% preparing to ditch their petrol and diesel cars for good
• Modern new EVs are predicted to hold their value more than petrol or diesel alternatives.

Maffey added: “Until recently, the second-hand market for electric cars was small, but this is beginning to change.

“The majority of electric cars to date have been bought by company car fleets and it was in about 2020 that we saw huge growth in the number of electric cars they were buying. On the basis that company car fleets typically hold cars for three years and vans for 4/5years, we expect those cars/vans to feed through to the second-hand market in the near future.

“While focusing exclusively on EVs right now wouldn’t be a sensible strategy in isolation, changes are going to occur soon whether dealers like it or not. Being prepared is key. We would suggest that forward thinking dealers look to start with 5-10% of their stock being EV now. Just having one unit doesn’t give their customers much confidence – and confidence is key.”


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