Advertisement feature from eBay Motors Group

One of the many welcome consequences of the increasing number of new electric vehicles (EVs) on our roads is the related rise in volumes now entering the used car market.

 Although these numbers are still relatively low, they are enjoying exponential growth, as witnessed by the 44% jump in used EV sales in Q3, reported by the Society of Motor Manufacturers and Traders1.

 Improved availability means more used car buyers will potentially be considering EV alternatives to combustion engine cars in their next purchasing cycle.

 However, with the cost of living crisis and spiralling utility bills impacting household budgets, eBay Motors Group commissioned independent research to measure the appetite among buyers to making the switch to electric.

The study, part of our ongoing Consumer Insight Panel research, polled the views of  2,000 in-market car buyers. While just over half expect their next car to be electric or hybrid, the rate at which they expect to transition away from petrol and diesel has slowed since we asked the same question last year.

Furthermore, of those buyers planning to go fully electric, the rate remains almost unchanged year-on-year at 22%, a significant slowdown after the virtual doubling to 21% in 2021.

The research also found that while the traditional barriers to buying EVs remain unchanged – access to charging points and cost of purchase – they have diminished since last year; while concerns over the charging costs saw the biggest year-on-year increase.

“The desire among car buyers to switch to electric remains strong, but the rate at which they plan to is slowing down as they factor in the rising cost of charging,” said Lucy Tugby, Marketing Director of eBay Motors Group.

“The increased cost of household energy bills is now front of mind for car buyers and could have a profound impact on electric adoption among used car buyers.

“Our research identifies how nearly half (44%) of all buyers need to change their car now out of necessity because their vehicles are getting old. However, the requirement for greater fuel efficiency, or a desire to switch to electric, are much lower on their list of priorities.

“As household budgets tighten, the challenge for dealers will be to source and stock the fuel types that customers will gravitate towards once they’ve weighed up the financial pros and cons of going electric.

“Our research shows that while the intent to switch to electric remains strong, there is still plenty of fuel in the tank for petrol and diesel,” said Tugby.

For the latest used car trends see eBay Motors Group’s Market View, available to view and download, free of charge, every month at www.ebaymotorsgroup.co.uk/news/.  Contact advertise@ebaymotorsgroup.co.uk or call 0203 966 2714 to speak to find out more about advertising opportunities.

Source:

1 Used Car Market Down in Q3 but EV Sales at Record High, SMMT press release, 10 November 2022

eBay Motors Group Consumer Insight Panel: Conducted by Insight Advantage, an independent market research firm, in September 2022. The sample consisted of 2,005 new and used car buyers aged over 18 who were sole or joint decision makers when buying a car. The Consumer Insight Panel has been tracking consumer car buying trends since 2018.