The BVLRA are lobbying the government for help because they can't sell used EVs. If you look at the chart on the left of the slideshow page 3, you can see that they're saying the residual value of an EV after 3 years is only 35% and an ICE car would typically be worth around 50% more.
Basically, their business model was to buy cars at a huge discound due to their buying power, lease them for three years, then sell them at a price not far from what they paid for them; however, this model doesn't work for EVs because the depreciation is too high and nobody wants to buy a three year old used EV. Therefore, they're asking the government for help before they go bust and the auto sales industry collapses. The whole industry is supported by what was the profitable leasing system, and any dealer will tell you that it's the used car sales that drives the industry.
Electric vehicles (EVs) are crucial for decarbonisation, but like any fairytale, the journey is far from smooth. Our ‘Happy EV After’ ending is at risk. New EVs are costly and lose value far faster than petrol or diesel. Over the last 24 months, used EV values have dropped by more than 50%, an...
www.bvrla.co.uk
Also, if you look in Autotrader, you can see loads of EVs of every make being sold at huge discounts with delivery mileage only, sometimes with two previous owners and around 2 years old. These cars were all pre-registered to make it look like more were selling than there were. It looks like the dealers pre-registered them but couldn't sell them, so they sold them at a discount to another dealer, who though he could make a quick buck, then they found that they couldn't sell them either. Have a look at this search for 2023 EV cars with less than 100 miles on them, and look at the prices!
www.autotrader.co.uk
VW ID3 three years old 13 miles 30% discount. Where's it been for three years?:
Find your next car with Auto Trader UK, the official #1 site to buy and sell new and used cars. Over 400,000 cars online. Simple, easy, quick!
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