Dealers say PHEVs are a stepping stone to EVs

Survey finds 68% of dealers say plug-in hybrids (PHEVs) are becoming a stepping stone to EVs for car buyers and 60% believe values will rise
However, only 37% think they will have a long-term market presence and 37% say buyers will start to reject them in favour of EVs
Only 13% of dealers say changes to the ZEV Mandate have improved the market for PHEVs

CAR buyers worried about going fully electric are using PHEVs as a stepping stone but it’s a transitory phase, says July’s Startline Used Car Tracker.

Nearly seven out of 10 dealers (68%) say PHEVs are becoming a stepping stone to an EV for car buyers worried about going fully electric.

The Tracker shows 60% expect values for PHEVs to rise and 48% expect demand to similarly increase.

However, many expect this trend to be transitory, with only 37% thinking PHEVs will have a long-term market presence and 37% believing motorists will start to reject them for EVs.

“It’s interesting though, that more than a third of dealers believe their current rise will pass as more drivers opt for a full EV,” said Paul Burgess, CEO at Startline Motor Finance. “They think that while PHEVs are very much on an upwards trajectory right now, their drivers will move onto fully electric cars in time.”

“While there are now strong indications that the market for used EVs is improving quite rapidly, there remains a sizeable cohort of car buyers who are concerned about factors such as accessing charging. For them, PHEVs are emerging as a halfway house to electrification, providing some electric range but also the reassurance of a combustion engine. It makes sense that they are becoming more popular”

Paul Burgess, CEO Startline Motor Finance Tweet

Only 13% of dealers say the government’s recent changes to the Zero Emissions Vehicle Mandate, which means PHEVs can now stay on sale until 2035, has had an impact on the situation.

Paul added: “Certainly, there is a widespread expectation that the revised ZEV Mandate will provide a boost to PHEVs in the new car sector but it is clear that few used car dealers in our research believe it will have a material impact on their customers.”

Compiled monthly by APD Global Research, the Tracker questioned 300 consumers and 60 dealers.