Low residual values putting fleets off EVs
Fleets are being dissuaded from investing more heavily in electric vehicles because of their low residual values.
According to FleetCheck, used electric vehicle prices have dropped to such a level that many fleets are put off by potential losses.
Peter Golding, FleetCheck CEO, said: “The used market has reached a position where EV sales are actually quite healthy providing their prices are around the same as hybrid and petrol equivalents. At that level, customers don’t seem to be in short supply.
“While that is a better situation than having a shortage of buyers, it does mean that considering the higher purchase price of EVs, residual values remain far from healthy.
“With fleets operating more and more electric cars and vans, the potential losses are mounting.”
Charging infrastructure
He said a key factor in boosting residual values was improving the charging infrastructure to make them more appealing to used car buyers.
Golding continued: “If you can’t easily and cheaply charge an EV, you can’t become part of the market. Arguably half of motorists are currently shut out of buying an electric car because they live in an apartment or terraced house.
“The government is putting more money into subsidising the installation of pavement charging gullies, which should make a difference, but more action is needed. Improving the infrastructure to widen charger accessibility is central to better residual values.”
