Stocking EVs becomes a greater risk to dealers as values fall

Almost two-thirds of dealers (64%) have said that recent falls in trade values are stopping them stocking electric vehicles (EVs).

According to over half (56%) is that values are too volatile, while 15% said that the same applies to prices, according to March’s Startline Used Car Tracker.

Also, 20% said that stock turnaround on EVs is proving too slow while 9% said obtaining finance is difficult.

Paul Burgess, CEO at Startline Motor Finance, said: “The dramatic fall in EV values in recent months has generated a lot of headlines in the motor industry and is clearly having a very real effect on whether dealers choose to stock these vehicles.

“This is understandable. Some popular models of EV have seen a double-digit percentage fall in values month on month and, for dealers, this can translate into potential losses of thousands of pounds on every vehicle. Not many dealers can afford to take those risks.

“Added to this, there is a widespread perception that EVs are slower to sell than petrol and diesel equivalents, which also makes stocking them less attractive. It’s undeniably a difficult period for the used EV market.”

However, 24% of dealers expect EV values to recover and 15% said that worries about values and prices are overstated.

Additionally, 18% say that EVs are now an important part of their model mix.

Burgess added: “There is, of course, no doubt that the used car market will electrify over the coming years but dealers are finding that this journey will not be necessarily linear. There will be periods when this relatively young market sees supply race ahead of customer demand, as we are seeing now but it’s worth remembering that it was only relatively recently that EVs were perceived as being in short supply.

“What we all want to see is a situation where EV values settle down and can be priced at a point where they look good value compared to petrol and diesel equivalents for everyday used car buyers. Getting to that point might turn out to be quite a bumpy ride, though.”