Dealers back EV scrappage scheme covering new and used cars

Almost half of UK motor dealers believe a government electric vehicle scrappage scheme should cover both new and used cars, according to new research from Startline Motor Finance.

November’s Startline Used Car Tracker found that 45% of dealers favour a scheme covering both markets, while 28% believe incentives should apply exclusively to new electric cars and 27% would prefer them to target used EVs.

The findings follow earlier research from Startline showing strong dealer support for a government-backed scrappage initiative designed to encourage motorists to switch from petrol and diesel vehicles to electric alternatives.

The latest survey also explored which vehicles should qualify for scrappage, the level of financial support required and how long a scheme should operate.

Some 45% of dealers believe the scheme should target petrol and diesel vehicles more than 10 years old, while 28% favour a five-year threshold and 27% would restrict eligibility to vehicles over 15 years old.

On the value of incentives, 35% selected a minimum allowance of £4,000, making it the most popular option. A further 28% favoured at least £3,000, while 20% wanted at least £5,000 and 8% selected at least £2,000.

Dealers were divided over whether a scrappage scheme should supplement existing government EV subsidies, with 53% favouring additional support and 47% believing it should replace current incentives.

Regarding the duration of a scheme, 45% supported a 12-month programme, 40% preferred six months and 15% favoured a shorter three-month initiative.

“Research we reported last month showed dealers overwhelmingly back the introduction of a government scrappage scheme promoting electric cars, so we decided to find out more about what they want.

“We’ve found quite a wide spread of opinions but, if you pick the most popular options for each response, you have a scheme subsidising both new and used electric models, with the cars submitted for scrappage over 10 years old, and an allowance of up to £4,000 available for 12 months.”

Burgess acknowledged that introducing a scrappage scheme with these characteristics could present challenges for the government, particularly given wider pressures on public finances.

“Whether the government can be persuaded to embrace an initiative with these kinds of parameters is open to question – it would be expensive at a time when budgets are tight.

“However, the research does hopefully provide useful pointers about how dealers believe official policy could encourage more people to go into EVs.”

The findings highlight the importance dealers place on financial incentives in encouraging the transition to electric vehicles, particularly as the growing availability of used EVs creates more opportunities for buyers at different price points.

A scheme covering both new and used electric cars could potentially broaden access to electric motoring, while helping dealers stimulate demand across both markets.

The November Startline Used Car Tracker was compiled by APD Global Research, which surveyed 60 dealers and 301 consumers.