I run one of the UK’s largest car dealerships with 190 garages – drivers are avoiding EVs… here’s why
A MAJOR car dealership boss, who oversees 190 garages, has revealed why drivers are avoiding EVs.
The average price of used electric cars is plummeting, as figures are being slashed by nearly a quarter, according to new data.
Research by online motor marketplace, AutoTrader, revealed the average cost for a second hand EV has dropped by a staggering 21.4 per cent this month.
Premium brands such as Elon Musk’s Tesla, BMW and Mercedes-Benz. have been the worst affected – who saw their average cost fall up to 24.1 per cent each year.
Robert Forrester, the CEO of the UK’s third largest motor retailer selling new and used cars, Bristol Street Motors, explained why drivers are avoiding EVs.
Speaking on the Sky News Business podcast, the motors expert said: “I think that there are very mixed messages coming from the Government, they said the ban would move from 2030 to 2035, although I don’t believe that has really happened in reality.
“There is robust demand from companies for ESG reasons, but also due to tax breaks for electric vehicles for company car users, so I think the demand is split.
“Retail is fairly muted but corporate demand is very high.”
The CEO revealed EVs make up 17 per cent of the market overall at present.
“We are in a period of higher interest rates, customers are paying higher rates, that is causing some issues around affordability,” he added.
“We are buying EVs for the used car market, if there’s an issue it will probably be in the higher end premiums where those interest rates on a high capital balance make so much of a difference,” he continued.
This comes as other experts have shared their thoughts on why motorists are staying away from electric cars.
Umesh Samani, chairman of the Independent Motor Dealers Association, also attributed the plummet in prices to Rishi Sunak’s delay on the petrol and diesel car ban.
The dealership boss said recent changed have allowed “everyone some breathing space”.
On why drivers may be hesitant to purchase an EV, he said: “It has been so volatile, dealers have been very frightened of getting involved with EVs.
“Many of our members have been stuck with EVs on their forecourts that they cannot shift, even as they are falling by £2,000 to £3,000 a month.
“That’s a phenomenal amount.”
Meanwhile, The Society of Motor Manufacturers and Traders has said drivers stopped buying EVs due to concerns over cost and re-charging.
A report from the trade body, highlighting the stalled electric car private buyer market, said: “A faster and fairer mass transition [to zero-emission vehicles] is threatened by the absence of support for private buyers, many of whom plan to go electric but are delaying due to concerns over affordability and uncertainty regarding the availability of a charging network.”
Additionally, Marc Palmer, the head of strategy and insights at AutoTrader, told MailOnline: “The used market will now be slower to mature.
“There will be fewer new EVs registered and fewer used cars coming to market.
“There will be sections of the public, especially those who are sceptical, who will want to wait.”