Dougie Barnett of AXA UK considers how consumer confidence in buying second-hand EVs can be bolstered in the run-up to the government’s 2030 target for phasing out petrol and diesel vehicles.
Only around 10% of Brits own an electric car, despite government plans to phase out petrol and diesel vehicles from 2030.
And a recent survey by AXA UK found almost two-thirds of UK motorists have no plans to buy one any time soon, citing concern over battery lifespan as one of the main reasons.
While the take-up of new EVs falls short of current government targets, the second-hand market is also slow-moving, with a lack of knowledge and confidence deterring consumers from making the switch.
Unlike petrol and diesel vehicles, where mileage is a barometer for value, there’s no clear and consistent measure for what an EV is worth or how long it’s likely to last. So, what can be done to give confidence to buyers and stimulate the UK’s used EV market?
An electric car’s battery accounts for 30-40% of its value so the state of the battery is a significant factor in evaluating its worth. Battery health information can easily be extracted from a vehicle, but making like-for-like comparisons across makes and models isn’t so straightforward.
Battery health can be measured in different ways, either by taking a reading direct from the car’s battery management system or by fulling discharging and recharging the battery first. And there’s every chance that battery health checks carried out by different providers could give slightly varied readings.
The reality is that electric car batteries rarely fail, and degradation is significantly slower than people may imagine. Comparisons are often made with mobile phone batteries, but they are completely different. It’s feasible for a five-year-old EV with 100,000 miles on the clock to still have battery health of 95%.
At an industry roundtable hosted by AXA UK and the British Vehicle Rental and Leasing Association (BVRLA) last week, where attendees included EV manufacturers, resellers and the Office for Zero Emission Vehicles (OZEV), there was consensus that action is urgently needed to boost the used EV market and buyers are reassured by a strong battery health reading.
This is despite there being little disparity between readings for older and newer vehicles or those with higher or lower mileage. A battery health reading of +90% is likely in most cases and other considerations, such as how the battery has been charged and how the vehicle has been driven, are possibly more relevant.
However, it’s crucial to consider how we can stimulate the second-hand EV market and provide consumers with information that they can use to make an informed decision about a purchase.
At AXA UK, we’ve long believed there’s a need to standardise this information and present it in a form that can be easily understood by consumers. Currently providers of battery health certificates present their findings in a variety of ways, ranging from a traffic light system or A-E grading to a straightforward percentage.
We have lobbied successive governments on this issue – Labour made a commitment in its 2024 General Election manifesto to introduce standardised battery health information and we are urging them to deliver on this promise.
We support the government’s net zero target, but we know it takes more than a deadline to help people switch from petrol cars to their green counterparts. Affordability is key to making EVs accessible and we therefore need to create a functioning second-hand market where consumers have the confidence to buy.
A government education campaign is also needed to help people transition from petrol and diesel vehicles to EVs as the 2030 deadline approaches. There are significant differences to the way EVs operate and should be driven to maximise battery life – a campaign would provide additional confidence for motorists to make the switch.
Dougie Barnett is Director of Commercial Customer Risk Management & Sustainability at AXA UK
Photo: TungArt7
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