The auto industry is undergoing an enormous shakeup in the UK as motorists begin to prepare for a greener future. The Government’s proposed 2040 ban on petrol and diesel has accelerated the green car revolution and this can be seen with the plummeting new car sales and especially diesel sales.
Used Electric Vehicle Values
Currently, motorists are shopping in the used car market because this is much safer and more affordable. So, how will used cars be affected by the green car revolution? Interestingly, the rise in demand for used electric cars has risen so drastically that they are now being sold for more than they were originally purchased for. Experts are stating that a motorist could purchase a new electric car and add over 1,000 miles over the course of 12 months and then still make a profit on the vehicle. As an example, a one-year-old Lexus GS hybrid sold for 0.7% more than its original purchase price on average.
Increase in Electric Cars
This is attributed to the shortage of eco-friendly vehicles in the second-hand market, but this is unlikely to continue. In fact, Peugeot recently announced that they will have an electric option on all of their cars by 2025 – this, and other manufacturers commitments to eco-friendly automobiles, should ensure that more electric vehicles are available in the used car market. This should make them more affordable for motorists and encourage more to make the switch.
Used Car Dealerships
Reputable used car dealerships like Motorpoint are currently performing well in terms of car sales, but it is unknown how they will respond to the electric future which is on the horizon. The proposed 2040 ban is likely to boost sales further and particularly if more cities begin to introduce charges and bans, but after this changeover, it could have a negative impact as motorists start to get used to electric automobiles.
The used car market is enjoying a boom right now with new car sales plummeting and this can be attributed to the clean air plans. Used electric cars are hot commodities in the second-hand market, but soon there will be much more available as more electric vehicles are introduced and those that have owned one for a while look to upgrade. What the future looks like beyond the 2040 ban is unclear, but dealerships will have plenty of time to prepare for the future whilst the public adjusts to the green revolution.