BVRLA lobbies government ‘to act’ and halt further decline in EV values

The British Vehicle, Rental and Leasing Association (BVRLA) has called on the government to “act now” to halt further decline in EV values.

Used EV values have fallen 50% over the last 24 months. The BVRLA is warning that the sector risks seeing further drops if no action is taken.

BVRLA CEO Gerry Keaney said: “Over the last two years, used EV values have dropped by 50% and are set to fall even further.”

Falling values create a short-term benefit to used EV buyers in the short term but negatively impact finance houses and fleets.

The BVRLA said confidence in how well electric vehicles will perform in the used market is waning, putting pressure on finance companies to increase the monthly lease rates for new EVs to cover their potential losses.

It warned the “negative loop” is set to accelerate in the coming years. An ever-increasing wave of second-hand EVs will hit the used market, with insufficient demand to absorb it.

Keaney said: “Vehicles start depreciating as soon as they are sold, particularly over the first few years. This is a fact of life and the cost of this loss in value is absorbed into the vehicle finance agreements that are responsible for around 90% of all new car and van sales.

“What is unprecedented and unsustainable is the scale of depreciation we are now seeing. Over the last two years, used EV values have dropped by 50% and are set to fall even further.

“These losses are being swallowed by the leasing companies and fleet operators that have championed the switch to zero-emission vehicles. They cannot continue to bear this burden alone. The Government needs to intervene now to help bring confidence and stability back to this vital part of the automotive ecosystem. Together, we can deliver a ‘Happy EV After’.”

The warning came as part of the association’s annual Parliamentary Reception, where it launched the #happyEVafter campaign. In conjunction with Auto Trader1, EVA England, and the NFDA.