UK to see ‘thriving’ second-hand market as one-third of sales will be electric by 2030
GB News guests debate using electric cars
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By the end of the decade, around 31 percent of annual used car sales will be battery electric vehicles, according to new analysis from LV= General Insurance. In 2021, electric vehicles made up just 1.3 percent of the total number of cars on the road, with just under 400,000 cars.
By next year, the number is expected to exceed one million, although this will only equate to 3.1 percent of the total.
By 2025, the figure will double to approximately six percent and then treble to 19 percent by 2030 with 6.4 million cars.
However, with the Government’s Zero Emission Vehicle Mandate due to be introduced in 2024, which will require manufacturers to sell a certain number of electric cars each year, it is possible this figure could be higher.
The number of second-hand BEVs sold annually is expected to see a steady increase over the next few years.
It is estimated that by 2026 – when there will be around 1.2 million EVs on the road – green vehicles could make up 15 percent of the second-hand annual sales market.
By 2030, this figure will rise to over three million and EVs will account for 31 percent of all annual used car sales.
The expected increase in used electric cars will likely drive competition and make electric cars more affordable.
Gill Nowell, Head of EV at LV= General Insurance, said annual running costs of EVs are cheaper than petrol and diesel, but some were still being put off by the upfront cost.
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Speaking about the data projections, she said it was “encouraging” to see that the second-hand market will be thriving by 2030.
She added: “The rapid development of the second-hand market is so important and can’t come quickly enough.
“The more electric cars on the road, the more upfront costs will come down, creating competition in the market and ultimately meeting our goals of making the nation’s roads greener.”
The research compared current sales of new electric cars with petrol/diesel vehicles, using data from the Department for Transport and DVLA.
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This sales data was then used to model expected changes in the number of electric car sales and petrol car registrations over the next decade, based on current growth rates.
By factoring in both the number of used cars being sold on and the number being taken off the road according to the Department for Transport and DVLA data, projections then estimated the expected changes in the second-hand market leading up to 2030.
This comes as thousands of drivers flock to used car websites and dealerships looking to get a good deal as many still deal with long delivery wait times for new vehicles.
There has been a 113 percent increase in motorists switching “new car” searches to “used” as delays and tightening budgets force drivers to embrace the used car market.
According to data from carwow, rising inflation and the cost of living crisis could be reasons why motorists are embracing the used car market in ever greater numbers.
Cars costing more than £50,000 have seen the biggest increase in interest with enquiries for used cars costing between £55,000 and £60,000 up 53 percent.
Used models in the £70,000 price bracket have seen consumer interest rise by 20 percent.
This suggests lead times could be impacting search, with motorists who were prepared to pay for a brand new car potentially switching to searching for used models out of availability, rather than cost.
Used models costing between £20,000 and £25,000 are currently the most popular price bracket, accounting for 23 percent of all enquiries, up from 20 percent at the end of 2021.
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