Independent used car dealers will welcome the extra time afforded by the Government to allow the UK automotive industry to strengthen the EV market infrastructure, as they continue to provide buyers with a larger choice of affordable vehicles during financially uncertain times.
Independent used car dealers will welcome the extra time afforded by the Government to allow the UK automotive industry to strengthen the EV market infrastructure, as they continue to provide buyers with a larger choice of affordable vehicles during financially uncertain times.
That's according to the findings from our survey and follows Prime Minister Rishi Sunak's speech outlining the Government's revised approach to the EV transition. Last month saw the Prime Minister extended the proposed ban on buying used petrol and diesel cars until 2035 from the original timeframe of 2030.
In a LinkedIn poll designed to gauge a consensus among independent used car dealers, discovered that 46% anticipate the delay of the electrification of all new cars to have a positive effect on their dealership, with a further 13% believing it will have no effect at all.
Julian Hartley, our Managing Director, said: "The Government's pragmatism places purchasing power back in the hands of buyers and is a positive move for independent dealers, according to data we have on the EV market and our own research. While many buyers are already joining the EV revolution, it would be wrong to force consumers to consider significant outlay on a vehicle that is currently lacking the support of a fully developed infrastructure, especially at a time when many are feeling the effects of increased interest rates and a cost-of-living crisis.
"The range of EVs, both new and used, available on the market has grown exponentially since 2019 and while we expect that to continue and drive prices down, costs are currently unfeasible for many.
"Currently, the Government has no other option than to extend the timeline on the proposed ban, but doing so should buy the time to improve infrastructure and allow the market to mature in its own time."
While the move will have eased the pressure on the supply chain, many manufacturers remain committed to the introduction of fully electric vehicles. Nissan's reaction to the deadline extension, for example, saw the business reaffirm its pledge to ensure all vehicles sold in Europe will be fully electric by 2030. Julian hopes this will give dealers the incentive to continue to explore stocking EVs in their own time as manufacturing output and demand increase.
"The automotive industry shouldn't view this as a backtrack on the long-term goal of fully electrifying the car market," he continued. "Instead, we should encourage the full EV supply chain to embrace the extra time afforded to it and bolster the charging infrastructure, as well as driving a desirability of electric vehicles. nationwide and ensure that relevant costs continue to fall, making ownership of an electric vehicle an appealing prospect rather than a forced commitment for both buyers and independent dealers," said Julian.
"By allowing the EV market, charging infrastructure and the accompanied introduction of clean air zones throughout the country to mature, this will undoubtedly alleviate the concerns of many independent used car dealers shared around the initial 2030 deadline. The longer timeframe will enable a larger variety of used EVs to enter used car dealer stock, and higher demand to fulfil."
"At V12 Vehicle Finance, we're aware of the worries many car dealers shared around the original proposed ban on petrol and diesel cars. We believe that the push back should help to lay those short-term concerns to rest. We encourage used car dealers to continue stocking their forecourts with vehicles positioned to cater for all buyer preferences and budgets as the market continues to evolve."