AA calls for used electric car incentives
A new report has urged the government to introduce financial incentives for used electric car buyers to help the UK meet net zero targets.
About 90% of all private vehicle sales last year were used cars, which are not part of the government’s Electric Car Grant scheme.
This means used car buyers have no incentive to support the switch to electric vehicles.
To redress this, the AA’s September Recharge Report has now called on the government to introduce a similar grant for used car buyers or remove VAT from the purchase price.
Used car grant
Jack Cousens, head of roads policy for The AA, said: “In order to maintain longevity of the electric transition, more needs to be done to bolster the used EV market.
“Fleet and leasing companies are currently propping up the sector with a solid turnover of cars, but this can’t continue much longer. The depreciation levels on used EVs is reaching a tipping point where some form of used electric car incentive is needed to help shoulder some of the burden.
“While the grant on new EV’s is welcome, the majority of private car sales takes place in the used market. Those looking to buy are wowed by the technology EVs offer and, with the right incentive, could make drivers think twice before choosing their new wheels.”
Autumn Budget
“Using the budget to announce a used car grant, or discounting VAT on used sales, would help invigorate used EV sales.
“If the right interventions can be made soon, more drivers will be able to benefit cheaper and stable charging costs compared to pump prices. The retention of charging costs from the summer means EV drivers know the price they pay at the charger is the same across the country – giving them better peace of mind.”
