Vertu boss welcomes £650m EV grant but wary over used market fallout

Vertu Motors chief executive Robert Forrester has welcomed the government’s new £650 million Electric Car Grant as a “necessary and welcome” intervention to boost private EV sales, but has warned that it could put pressure on the used EV market.

The new scheme offers up to £3,750 off battery-electric vehicles priced under £37,000, aiming to make EVs more affordable for motorists.

“EV uptake by private buyers has stalled,” said Forrester. “Just under 20% of EVs are now sold to individuals. That imbalance is unsustainable. This grant helps redress that by making EVs more financially viable.”

Forrester also praised the tiered structure of the grant, which offers £3,750 for the most sustainably produced vehicles and £1,500 for those that meet some environmental criteria.

“It’s smart policy,” he said. “A holistic transition must consider the entire carbon footprint - not just what comes out of the tailpipe.”

However, he cautioned that the influx of subsidised new EVs could cause instability in the second-hand market.

“Two in five used EVs sold last year were under £20,000. If residual values fall further, confidence could be undermined,” he said, urging additional support such as scrappage schemes, battery health certification, and tax incentives for used EV buyers.

Despite concerns, Forrester called the initiative a “step in the right direction” that sends a clear message of long-term government support for electrification.

“The task now is to make sure we bring the used car market along with us.”

Which is something that organisations such as the British Vehicle Rental and Leasing Association and the Vehicle Remarketing Association are concerned about. Thomas McLellan, head of policy at the BVRLA, fears used car buyers - which outnumber new car retail buyers by eight to one - have been forgotten.

"If we want to open up the transition, making it fair, really boosting consumer sentiment, then we need action in the space where most people actually buy their vehicles and where it will be hardest to change people's minds," McLellan said.

"While I am sure all parts of the market will welcome more retail customers willing to make the jump to EVs, as the ZEV Mandate ramps up, it entirely misses the most important aspect of this transition – the used EV market and its buyers."