Rising PHEV demand is only temporary
New research has found that dealers believe that rising PHEV demand is only temporary and will eventually be replaced by pure electric vehicles.
According to Startline’s July Used Car Tracker, 60% of dealerships predict that PHEV values and demand will rise.
However, most believe this trend will not last. Instead, they suggest the PHEV spike represents a stepping stone to pure electric vehicles with only 37% of dealers convinced PHEVs will have a long-term presence in the market.
Paul Burgess, CEO at Startline Motor Finance, said: “While there are now strong indications that the market for used EVs is improving quite rapidly, there remains a sizeable cohort of car buyers who are concerned about factors such as accessing charging.
“For them, PHEVs are emerging as a halfway house to electrification, providing some electric range but also the reassurance of a combustion engine. It makes sense that they are becoming more popular.”
Fully electric future
Sturgess continued: “It’s interesting though, that more than a third of dealers believe their current rise will pass as more drivers opt for a full EV. They think that while PHEVs are very much on an upwards trajectory right now, their drivers will move onto fully electric cars in time.”
Meanwhile, only 13% of dealers believe the government’s recent changes to the ZEV Mandate has had an impact on the situation.
Sturgess added: “Certainly, there is a widespread expectation that the revised ZEV Mandate will provide a boost to PHEVs in the new car sector but it is clear that few used car dealers in our research believe it will have a material impact on their customers.”
