Oil price shocks driving renewed interest in electric cars, dealers say

More than nine out of 10 used car dealers believe global events such as the war in Iran are encouraging motorists to consider switching to electric vehicles, according to new research from the Startline Used Car Tracker.

The latest study found that 92% of used dealers believe geopolitical instability and rising oil prices are prompting more car buyers to think seriously about electric vehicles (EVs), as fuel costs for petrol and diesel cars continue to climb.

According to the research, 67% of dealers said consumers are increasingly aware that charging an electric car can be significantly cheaper than fuelling a petrol or diesel vehicle. Meanwhile, 57% pointed to the speed and scale of recent fuel price increases as a major factor influencing buyer behaviour.

A further 21% said rising fuel prices are leaving consumers feeling economically vulnerable, adding to pressure on household finances and increasing interest in lower running-cost alternatives.

Very few dealers expressed opposing views. Just 5% believed consumers expected electricity prices to rise substantially alongside oil prices, while another 5% thought higher fuel costs still did not outweigh the overall expense of buying an electric car.

Paul Burgess, chief executive officer at Startline Motor Finance, said the recent surge in fuel prices was changing the economics of vehicle ownership for many consumers.

“The pump price surge seen in recent weeks and months has been rapid and substantial, and electric cars potentially offer a route for motorists to sidestep the worst of the situation,” he said.

“Our research shows an overwhelming majority of used car dealers believe consumers understand the potential for cutting costs offered by going electric and, with relatively large numbers of vehicles now available and arguably undervalued, interest may noticeably rise.”

Burgess added that while practical barriers to EV ownership remain, rising fuel prices could accelerate demand among motorists who are able to charge at home.

“Of course, there remain structural issues for many potential buyers – those without their own driveway will probably have issues accessing low-cost home charging – but for others, driving an electric car is becoming a more attractive economic proposition, dealers believe.”

The findings suggest economic considerations are increasingly shaping the used EV market, particularly as a growing number of electric vehicles enter the second-hand market at lower price points.

The Startline Used Car Tracker is compiled monthly for Startline Motor Finance by APD Global Research. The latest edition surveyed 309 consumers and 62 dealers.