IMDA urges £1,000 Government grant incentive to support used EV market

The Independent Motor Dealers Association (IMDA) is urging the Government to introduce a £1,000 grant incentive to support the UK’s used electric vehicle market or risk it being “left behind”.

The IMDA has raised “serious concerns” about the lack of provisions for the used EV market following the announcement of the Electric Car Grant (ECG).

The ECG has been introduced to stimulate the new car EV retail market, which the new car industry had also been urging support for.

While the IMDA does welcome the support for the new car sector, Umesh Samani, the organisation’s chairman said: “Without action, the used EV market risks being left behind, undermining the entire EV transition.”

The IMDA identified key challenges  including falling residual values, “hesitant buyers” and a lack of grant funding.

Samani said the IMDA’s own polling shows there is a lack of engagement to stock used EVs, with only 20% of members doing so.

The IMDA has proposed some solutions which it felt could help the independent motor dealer network.

Battery health certification scheme:

• Administered by recognised trade associations like the IMDA.
• Certification issued within 14 days of sale.
• Potential integration with MOT testing for long-term tracking.
• Certification safeguards buyers under the Consumer Rights Act 2015.
• Helps eliminate rogue traders and supports genuine dealers.
• Provides government with valuable battery degradation data.

Government-backed consumer incentives targeting the used vehicle sector:

• £1,000 grant fundinf toward a home charger or equivalent energy credit upon purchase of a used EV
• Only available through certified dealers meeting quality standards or registered to a trade association.
• Government-Backed Incentives to support independent motor dealers
• Vouchers/grants for sales training to ensure consumers are being given the right information
• Grants for aftersales training to ensure independent workshops are fully qualified on EVs

Samani added: “We’re offering suggestions that protect consumers, support genuine independent motor dealers and give the Government accountability.

“It’s time for independent dealers to have a proper seat at the EV table.”

ECG "unlikely to heavily impact used EV market", says Auto Trader

Several industry commentators have raised concerns for the used EV market following the announcement of the ECG.

However, Ian Plummer, commercial director at Auto Trader, recently said it's unlikely the ECG will either heavily or immediately impact used EV pricing and residual values.

Plummer said: "It was encouraging to see a strong surge of interest in new EVs on Auto Trader immediately post the grant launch, and some of this positivity also flowed into used EVs, as we know the majority of those considering electric will shop both new and used cars.

“The new EV market is far from reaching parity, however, and that’s where the grant will have a key role to play in ensuring there’s an EV for everyone.

"New government actions will mainly impact the new car market, including by probably forcing pricing actions on new EVs of brands not eligible for the incentives but needing to keep pace with their competitors.

"But while attractively priced used EVs are still well below new models, it's unlikely they will see further price reductions, at least in the short term.”