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Protection for the fast-growing used EV marketplace
Electric vehicles (EVs) have been a major segment of the new car market for several years now and sales continue to grow. They account for over 16% of registrations in 2023, according to data from the Society of Motor Manufacturers and Traders (SMMT). That level of market share is now having a significant knock-on effect on the used EV market, which has seen an 81.8% jump in sales in Q2 according to the SMMT.
Used EVs still only account for 1.7% of the used car market but that is a new record – up from 1% last year. The rising proportion of EVs meant the market share for conventionally powered cars fell to 94.3% from 95.7%, despite both petrol and diesel used car sales growing 2.5% and 2.8% respectively.
Are used EVs at the start of a meteoric rise?
While EVs do only make up a small percentage of the used car market, the large jump in sales from last year could be the start of what would be a meteoric rise for the increasingly popular technology. As new EVs continue to grow their market share (currently up almost 3% on last year) the trickle down of vehicles to second-hand buyers will quickly increase.
Mike Hawes, SMMT Chief Executive, said: “It’s great to see a recharged new car sector supporting demand for used cars and, in particular, helping more people to get behind the wheel of an electric vehicle. Meeting the undoubted appetite for pre-owned EVs will depend on sustaining a buoyant new car market and on the provision of accessible, reliable charging infrastructure powered by affordable, green energy. This, in turn, will allow more people to drive zero at a price point suited to them, helping accelerate delivery of our environmental goals.”
Protecting used EV drivers
With the growing market of used EV drivers, there will be an increasing requirement for financial aftercare protection, such as warranty. As an industry-leading provider of warranty and add-on insurance solutions, Car Care Plan has specific wording for hybrid and electrical vehicle (EVs) components in our standard warranty products. This even covers one of the biggest concerns EV drivers have – range anxiety.
As presented at the Motor Trader EV Summit, we have also recently launched our EV Drivers Club membership programme, which supports customers with a wide range of benefits. They include a comprehensive annual vehicle health check, EV specific breakdown and recovery services, membership of Zoom EV and Zapmap, key insurance with SmartFob, and discounts through Bonnet and Dent Wizard Ventures (DWV).
To learn more about Car Care Plan’s EV products and services, contact us today.