UK Car Lending

V12 Vehicle Finance urges used car dealerships to ‘take stock’ of EV growth

Used car retailers have been told to focus on accelerating the holding of their electric vehicle (EV) stock to around 10% of their forecourts in a bid to meet an inevitable surge in demand for Used VE.

V12 Vehicle Finance urges dealerships to start planning ahead after EV registrations rose 78.7% to 39,315 units in March, the highest volume of EV registrations ever never recorded in a single month.

While remarketing supplier Aston Barclay this week signaled the potential for diesel cars to grow in popularity amid rising fuel prices, V12 pointed out that the sector is headed straight for greater market share. electric vehicles.

Chief Financial Officer Tim Maffey said: “If there’s one piece of advice we would give used car dealers, it would be to imagine a world where electric vehicles are commonplace and start preparing for the future right now.

“At the moment, dealers are not selling many used electric vehicles because there are not many on the market.

“But that won’t be the case for long and it’s important for them to be prepared with a robust digital sales function so that when more stock becomes available, they can sell them to a forward-looking customer base. “

V12 Vehicle Finance helps with the sourcing, buying, selling and financing of used vehicles and has spent months researching the subject of electric vehicles.

The company said it was now in a position to launch its rallying call to used dealers, with a significant amount of evidence pointing to impending change, including:

  • 59% of UK automotive executives say that by 2030 most vehicle sales will be online; 56% say electric vehicles will account for between 70-100% of all new sales in Western Europe.
  • Fuel savings for going electric have reached an all-time high of £779 a year on average for petrol drivers – £738 for diesel drivers.
  • A Bridgestone survey of 2,000 motorists confirmed that UK consumers are starting to accelerate travel in electric vehicles, with 67% preparing to ditch their petrol and diesel cars for good.
  • New modern electric vehicles are expected to retain their value more than gasoline or diesel alternatives.

Earlier this month the government opened a consultation on a proposed electric vehicle (EV) mandate that would require at least half of all new cars sold in the UK to be zero tailpipe emissions by 2028.

It suggests that by 2024 – the first year of the proposed mandate for electric vehicles – an initial mandate could be introduced that would require electric vehicles to account for 20% and 30% of new car sales.

Maffey said: “While focusing exclusively on electric vehicles at this time would not be a sensible strategy in isolation, changes are coming soon whether dealers like them or not. Being prepared is the key.

“We suggest forward-thinking dealerships start with 5-10% of their EV inventory. Just having one unit doesn’t instill much confidence in their customers – and confidence is key.

V12 Vehicle Finance offers financing solutions to its used car dealership customers as it expands its own electric vehicle solutions to become the UK’s go-to lending partner.

Electric vehicles can now be financed on both its equity financing products and its lease-purchase products.