Budget must add support for used EV market, say fleets

Support for the used electric vehicle segment is the number one aspiration for the upcoming Budget, according to the body representing the UK’s fleet operators.

Paull Hollick, chair of the Association of Fleet Professionals (AFP), said that following the introduction of the Electric Car Grant for new models, any similar incentive for the second-hand market would be “very well received” by fleets.

Hollick said that data from the new car market showed the ECG scheme was helping stimulate interest and similar support for the used car market would have a similar positive effect.

Ahead of Chancellor Rachel Reeve’s Budget statement on November 26, he commented: “While the scheme has not been perfect, it appears to be helping make new electric cars more accessible through both direct grants and widespread, substantial discounting being prompted by increased competition.

“Really, we’d like to see a corresponding initiative for the used sector. While values for second-hand EVs have stabilised and the era of large month-on-month drops appears to thankfully be over, consumer interest is still variable and residual values remain simply too low.”

He said various forms of support – from direct grants like the ECG to interest-free purchase loans – would help boost customer interest in used EVs.

Used electric car sales continue to increase and were up 40% in the second quarter of 2025 compared with just 1.7% growth across the whole market. However, they still account for less than 4% of all used car sales.

Hollick also called for the Chancellor to reconsider recent tax changes which have pushed up EV operating costs for fleet and private motorists. Since April, all electric cars and vans registered since 2017 have been liable for vehicle excise duty (car tax) in the same way as petrol and diesel vehicles.

Hollick said: “The increases for electric cars that took effect from April have added quite heavily to their running costs and created a disincentive, while the introduction of VED for electric vans has been counterproductive in a market that is struggling to find its feet.”

He said that the Budget provided an opportunity to give more support to expanding the UK’s charging infrastructure, including the reintroduction of grants for businesses. He noted: “Deadlines for the government’s earlier scheme made it next to impossible for those interested in applying to access the fund – something that caused consternation among fleets – so it is presumably unallocated and still potentially available.”

He added taht the Budget presented an opportunity to improve destination charging at hotels and other facilities – a gap identified by AFP members – and to boost the country’s kerbside charging infrastructure by allocating more than the £25 million to install cable gullies.