A coalition of more than 30 automotive industry organisations is calling for immediate action to support the used battery electric vehicle (BEV) market.
In an open letter delivered yesterday to Transport Secretary Heidi Alexander, the group urged ministers to prioritise the used sector in the allocation of the £1.4 billion pledged last month to boost electric vehicle uptake across cars, vans and HGVs.
The letter, coordinated by the British Vehicle Rental and Leasing Association (BVRLA), was backed by organisations across the EV ecosystem, including the National Franchised Dealers Association, leasing firms, insurers, maintenance providers, remarketing specialists, and manufacturers such as BYD, MG Motor UK and Polestar.
The coalition argues that targeted support for the second-hand EV sector offers the best value-for-money approach to accelerating BEV adoption, especially for households and small businesses. The used market is nearly four times the size of the new car market, making it a critical lever in achieving the UK’s net-zero transport ambitions.
BVRLA chief executive Toby Poston said: “Maintaining healthy demand and values for second-hand electric vehicles is essential if we want to deliver a sustained transition. The link between the new and used markets is critical.
“Low residual values increase the cost of financing and leasing new vehicles. This impacts all customers, especially consumers and SMEs, suppressing demand and eroding confidence across the BEV ecosystem.”
Alongside financial support – such as targeted grants and subsidies to boost affordability – the letter calls for broader interventions, including investment in skills and training, consistent battery health standards, and public education campaigns to increase consumer confidence.
The appeal follows the BVRLA’s latest Road to Zero report, which warned that the UK’s EV transition is “hanging in the balance” due to plunging used BEV values. Average second-hand electric car prices have fallen by 46% since 2021, compared with a 19% drop for petrol and diesel vehicles.
Poston added: “We know the Government is listening. The £1.4bn committed to support EV uptake last month could make a difference.
“This letter is just one example of how we continue to work with industry and Government to highlight how this money can achieve the best return on investment.”
The signatories include major leasing and finance providers such as Arval UK, Alphabet and Zenith, as well as industry bodies including the Association of British Insurers, the Institute of the Motor Industry, Autotrader UK, EVA England and the Vehicle Remarketing Association.
The coalition is now seeking active dialogue with ministers to shape a stable, supportive environment for the used EV sector – one they say is essential for a fair and inclusive zero-emission future.
Last month Automotive Management reported that the average price of a used electric vehicle (EV) in the UK has dropped by £7,411 in just two years, falling from £30,441 in May 2023 to £23,029 in May 2025, according to figures from Marketcheck.
Research released last year by motor finance firm Startline revealed that dealers believe the used car market needs more affordable EVs, and one in four was concerned that there are too many expensive, executive EVs in the market.