Consumer data indicates more information will help kickstart the used EV market
Battery health information is a huge issue for motorists
Many car buyers are unaware of price and a majority have little brand loyalty
THE used car market for electric vehicles (EVs) would get the kick start it needed if there was more comprehensive information about used EVs.
That’s the view of Chris Green, the CEO of Regit – a ‘digital garage’ – following a recent survey of its customers.
Chris says that there is an underlying sense of optimism in the used EV sector, where encouraging numbers of motorists would be happy to consider buying a used EV provided the “information gap” was closed.
Writing in Cox Automotive’s latest quarterly insight, AutoFocus, Chris says:
A key example of this is battery health. 96% of those surveyed listed this as a key requirement when assessing a used EV online. In contrast, two in three said battery health itself was a more important requirement than range – yet there is virtually no online presence or record of battery health across retailer and dealer sites.
The used EV market has been troublesome for dealers during 2023, with many refusing to stock EVs because of the volatile nature of RVs and the reluctance of buyers to come forward, or simply are reducing stock.
However, there does appear to be a shift in momentum. cap hpi reported a 2% move downwards in RVs during August but also reported that compact cars, such as the Kia E-Niro , Peugeot 2008 and VW ID.3 had all increased in value during August.
Philip Nothard, Cox Automotive’s insight and strategy director, believes there is reason to believe the used EV market is changing and can change for the better.
The survey’s findings point to a much-needed dollop of optimism that the used market needs, while also underlining some of the work that needs to be done to market EVs more effectively. The picture may look bleak, but circumstances and priorities can change to increase the sales of used EVs.
More information means more clued-up buyers
Regit’s survey says just as many motorists consider warranty as important a part of their decision-making as battery health, while 76% say there is a distinct lack of information about EVs online to help inform a switch.
Brand loyalty is another area that produced interesting results in the survey. Chris said it is as low as he can remember as we move towards ultra low and zero emission motoring.
He added: “76% of those surveyed saying they would be less brand loyal, whereas 65% of our users said they will be actively considering a new brand when looking for an electric vehicle, for example, Polestar, Genesis or one of the new Asian brands.”
Pricing and brand loyalty
According to Regit’s survey, many people simply don’t know what is the average cost of a used EV and how that relates to a regular ICE model.
We asked our audience if they roughly know the price of a VW ID.3. with 30,000 miles on the clock. 80% didn’t realise that with some savvy shopping, you can pick one up for under £20,000 – yet 64% say price is a barrier to sale. £20,000 is still a lot of money, but many would say a low-mileage, two-year-old hatchback from a semi-premium brand at that price represents a good deal.
He concluded that dealers on the front foot and using data and technology to create more proactive lead-gen strategies that “put great offers in front of customers” will do much of the spade work to accelerate the shift to electric.
Philip added:
There are many great deals currently out there for the canny car buyer in today’s used EV market. Dealers should take heart from Regit’s survey and consider how they can better get across the price, quality and reliability of the stock on their forecourt.
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Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.
