Used EV Sales Soar, Yet Ford Fiesta Outpaces Them All
The automotive landscape is rapidly shifting, with emerging trends in electric vehicle (EV) sales capturing attention. Recent statistics indicate a significant increase in buyers transitioning to used EVs, which reflects growing confidence in zero and ultra-low emission vehicles.
Used EV Sales Surge
This surge in used EV purchases is essential for fostering a sustainable transport sector. Industry leaders emphasize the importance of sustaining this momentum to support fleet renewal. Doing so is crucial for accelerating the decarbonization of roads.
Government Incentives for New EV Purchases
While used EV buyers face limited incentives, new car buyers are in a more favorable position. The UK Government offers the Electric Car Grant, which provides discounts of up to £3,750 on new EVs. However, this incentive applies only to vehicles with a base price under £37,000, while the total with options must remain under £42,000.
Challenges for Used EV Buyers
Despite rising used EV sales, challenges remain. Currently, private buyers face steep depreciation costs, making the transition less appealing. Campaigners are urging the government to reduce VAT on public charging stations, which stands at 20%. This high rate makes public charging more expensive compared to domestic charging with a lower VAT rate.
Looking Ahead
The Government is reviewing the costs associated with public EV charging. This review aims to assess the impact of energy prices and explore potential solutions for reducing costs for consumers. However, Auto Express anticipates that any changes will not materialize before the annual Budget scheduled for the second half of 2026.
- Key Points:
- Record number of buyers switching to used EVs.
- Electric Car Grant offers up to £3,750 for new EVs.
- No current incentives for used EV purchases.
- VAT on public charging at 20% hinders affordability.
- Government reviewing public EV charging costs.
The rise in used EV sales signals an evolving market, with government policies playing a crucial role in shaping future consumer behavior. For better EV adoption, both incentives for used vehicles and reduced charging costs are essential.
