UK fleet operators, trade bodies and vehicle rental and leasing companies have called for vital action to support used EV market and avoid derailing the zero-emission switch.

Without intervention, forecasts suggest the UK could lose out on 290,000 new EV registrations in the next two years

Coordinated by the BVRLA and signed by a host of business leaders including Ayvens, Kinto UK and Leasys, a letter has gone out to the Transport, Environmental Audit and Business Select Committees to open up private buyer and SME access to used EVs and mitigate the volatile residual values denting market confidence.

Registrations of new battery electric vehicles (BEVs) are on an upward trajectory, led by the fleet and leasing sectors and favourable tax conditions. They’re also being propelled by the Government’s ZEV mandate, which sets increased targets for sales of new zero-emission vehicles each year.

But the size of the new car market is dwarfed by that of the used market – standing at around two million cars annually compared to seven million used cars.

And with fast-increasing numbers of EVs set to reach the used market in the months and years ahead, those involved in the campaign warn that trouble lies ahead as used buyers  currently have no support to make the shift to BEVs, creating a chasm between supply, due to increase by 178% by 2028, and demand.

This gap has already put values of second-hand BEVs under pressure, resulting in a fall of over 50% over the last two years, and values are forecast to fall a further 28% by 2030.

The open letter to the Select Committees warns that this depreciation is hitting leasing firms but also fleets, which face higher motor finance costs.

It also says that without intervention, forecasts suggest the UK could lose out on 290,000 new EV registrations in the next two years, inhibiting progress on the zero-emission switch.

Signatories are calling on the Select Committees to urgently engage with this issue. Solutions suggested by industry include targeted grants, measures to mitigate the volatility that residual values are experiencing, and the introduction of clear and standardised battery health information.

Delivering the letter in Parliament today, BVRLA chief executive Toby Poston said: “Maintaining healthy demand and values for second-hand electric vehicles is essential if we want to deliver a sustained transition. A lack of government incentives or affordable public charging infrastructure means that too few used car buyers or dealers are seeing the benefit in going electric. As a result, used BEV supply is outstripping demand and prices are continuing to fall. This depreciation is costing fleets hundreds of millions and being passed on to new buyers in the form of higher motor finance costs.

“To restore confidence in the net zero transition and sustain a healthy electric vehicle ecosystem, the Government needs to intervene.”

Signatories of open letter to Select Committees, 3 April 2025

The Association of Fleet Professionals (AFP)

Electric Vehicle Association (EVA) England

National Franchised Dealers Association (NFDA)

Vehicle Remarketing Association (VRA)

Alphabet (GB)

Arnold Clark Finance Ltd

Arval UK

Ayvens UK

Cox Automotive Europe

Kinto UK Ltd

Leasys

Select Lease by Mobilize

Novuna Vehicle Solutions

Octopus Electric Vehicles

Pendragon Vehicle Management

SG Fleet

United Rental Group (URG)

Zenith

The AA

Amey Group

Autoglass and Laddaw

AXA UK & Ireland

Clarion Housing Group

MJ Quinn

NG Bailey

Sanctuary Housing

Speedy Hire