Action needed to support EV residual values - FleetCheck

FLEETs face mounting losses from EV residual values and need support, while they themselves need to do more to promote used EVs, says FleetCheck.

Peter Golding, CEO at the fleet software specialist, said that while there was strong evidence that used EVs were now selling faster, prices remained stubbornly low.

“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.”

This is highlighted by the latest data from Percayso, showing that the Nissan Leaf (above) was the best performing EV in October, with prices rising by 10%.

“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.”

Peter said positive 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 is calling on the Government to introduce consumer support such as low cost finance for used EVs and for more action on the charging infrastructure.

Last month the BVRLA ran a week of activity to promote used electric vehicles and highlight such issues.

The fleet sector can do more

However, Peter added that there was also more that the fleet sector could be doing itself to promote the advantages of used EVs.

“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.”

He says that fleets selling EVs into the used sector should also be exploring standard battery health checks with ex-company cars and vans and even considering warranties that cover the battery and drivetrain items.

“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.”

Peter Golding, CEO, Fleetcheck Tweet