Budget Must Add Support for Used EV Market Say Fleets

Budget Must Add Support for Used EV Market Say Fleets image

The Association of Fleet Professionals wants government support for used electric vehicles to be the top priority in the upcoming Budget. The trade body representing UK fleet operators says a second-hand EV incentive scheme would get strong support from their members.

Paull Hollick, chair of the AFP, believes any program similar to the Electric Car Grant for new vehicles would be “very well received” by fleets across the country.

Data from new car sales shows the ECG scheme is boosting interest in electric vehicles. Hollick thinks similar support for the used market would create the same positive impact.

Budget Priorities for Electric Vehicle Support

Chancellor Rachel Reeves will deliver her Budget statement on November 26. Hollick shared his thoughts on what the government should prioritize.

“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.”

The AFP wants to see a matching program for used EVs. Second-hand electric vehicle values have stabilized after months of steep declines, but consumer interest remains inconsistent.

“Really, we’d like to see a corresponding initiative for the used sector,” Hollick explained. “Consumer interest is still variable and residual values remain simply too low.”

The organization suggests several support options – from direct grants like the ECG to interest-free purchase loans. Any of these approaches would help increase customer interest in used electric vehicles.

Used EV Market Shows Growth but Needs Help

Used electric car sales continue climbing and were up 40% in the second quarter of 2025 compared with just 1.7% growth across the whole market.

Despite this growth, used EVs still represent less than 4% of all second-hand car sales.

Hollick also wants the Chancellor to reverse recent tax changes that have increased EV operating costs. Since April, all electric cars and vans registered since 2017 face vehicle excise duty – the same car tax that applies to petrol and diesel vehicles.

“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.”

Charging Infrastructure Investment Needed

The Budget offers a chance to expand the UK’s charging infrastructure, including bringing back grants for businesses.

Hollick pointed out problems with the government’s previous scheme. “Deadlines for the government’s earlier scheme made it next to impossible for those interested in applying to access the fund,” he said. The situation “caused consternation among fleets” and likely means funding remains unallocated.

The AFP also wants better destination charging at hotels and other facilities. Members have identified this as a significant gap in current provision.

The organization believes the government should boost kerbside charging infrastructure by allocating more than the current £25 million for cable gully installations.

These investments would help address the practical barriers that still limit electric vehicle adoption across both fleet and private markets.

Nash Peterson avatar
Nash Peterson
1 month ago