Peter Vosper: Government to support electric vehicle buyers

The government is reportedly developing plans to encourage electric vehicle adoption by introducing subsidies for consumer loans, aiming to boost sales and support sustainability efforts.

The Financial Times reported that  ministers are actively developing plans to encourage the adoption of electric vehicles (EVs) by introducing subsidies to support consumer loans. The scheme aims to make low-interest or even interest-free loans more accessible to consumers interested in purchasing EVs. This move highlights the UK’s ongoing commitment to enhancing the uptake of electric vehicles amid a broader agenda surrounding climate action and sustainability.

The Financial Times has reported that these discussions with the automotive finance sector are part of a collaborative approach to stimulate the market and ensure a smoother transition towards electric mobility. By guaranteeing loans to consumers, the government hopes to alleviate some of the financial barriers associated with switching to an electric vehicle, thereby promoting a shift from traditional petrol and diesel cars to cleaner alternatives. The  motor sector has long called for incentives for private customers to boost sales of EVs, which have lagged targets.

However, figures just released show used EVs at three years old are the fastest-selling car type, according to cap hpi. As of the end of January, three-year-old BEVs were selling within 42 days on average compared with petrol variants (48 days), hybrids (43 days), and plug-in hybrids (47 days). 

Chris Plumb, head of current car valuations at cap hpi, said, “The first half of the month showed very little change in the average number of days to sell. However, mid-January saw average days to sell beginning to reduce, particularly improving for franchised dealers, indicating that the used retail market is gathering momentum. The retail market remains stable, showcasing robust consumer demand for BEVs, especially for vehicles aged between three and five years old, as they can give exceptional value for money.”

This confirms the activity in the used BEV market as more people consider the advantages of electric vehicles and the government’s determination to achieve their objectives. The sooner they can make firm statements about their plans the better, but there is also dialogue with the manufacturers on cooperation to work together rather than each one blaming the other. More small BEV cars are arriving on the market, and prices are much closer to their petrol equivalents, which should make them more attractive to the private motorist.