The used battery-electric vehicle (BEV) market is being held back by high prices, according to a new survey.

Finance provider MotoNovo Finance is calling on the Government to launch an incentive scheme to encourage buyers in the used market to consider electric, after its survey concluded that 81% of used buyers will be unlikely to choose an EV as their next car.

The new EV retail market is currently being underpinned by fleet and business users attracted by benefit-in-kind (BIK) incentives. Some private ‘buyers’ have been able to benefit from such incentives under salary sacrifice schemes and, to a limited level, have been able to access a nearly new, used BEV provided it has previously been leased under a BIK scheme. But many private buyers do not have access to such employee benefit schemes.

MotoNovo wants the Government to introduce support for used BEV buyers that is not limited to employer benefit schemes following its consumer research on the emerging used electric vehicle market, amongst 2,000 UK adults.

The price gap between conbution-engined cars and BEVs has closed in the newer used car market sector, but the average advertised price for a used EV was reported recently as £27,607 – significantly higher than for petrol or diesel alternatives.

When asked in the survey whether Government incentives such as grants or scrapple schemes, would encored used buyers to switch to electric, more than half said it would make a difference and a third that it would be major factor.

MotoNovo Finance’s Commercial Director Debbie McKay believes the current lack of price parity between used combustion and electric vehicles could be damaging to the fledgling used BEV market. “Looking ahead, the supply of used BEVs will increase significantly, mirroring the growth in the new car market over the last three years. Encouraging more consumers to choose a used BEV is crucial,” McKay said.