Professional buyers just don’t see high numbers of electric and
hybrid vehicles reaching the used market, which makes it difficult
to gauge demand and almost impossible to suggest growth. However,
there is a rarity value attached to the best examples which can see
values soar, particularly when they are offered in the right part
of the country.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The commercial vehicle market has had a long exposure to
alternative fuels and is probably more comfortable with the concept
than the car market. There are also clearly defined business
benefits for low-emission commercial vehicles working in the
congestion-charging zone, for example.
BCA has seen selected lower mileage, good condition LPG
commercial models make exceptional money – sometimes even
outstripping the comparative diesel value. Such examples are rare
and tend to occur at our centres nearest to London, where LPG can
have a real financial benefit for the operator.
There is an active sub-market of operators who buy
late-plate, clean LPG vans for delivery work and other duties in
and around the congestion charging zone in London. Providing the
LPG van meets the emissions criteria it can offer a substantial
saving if it is working in the charging zone every day. This can
have a significant effect on values, which can soar for the right
vehicle.”
However, this view does change regionally and there is
generally less interest for LPG the further you get away from
London.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData The benefits are less obvious when dealing with alternative
fuelled and hybrid cars. The next owner is almost certainly going
to be a private motorist, so there are no ‘business benefits’ to
assist in the selling process.
As you are unlikely to buy an alternative fuelled car on a
whim, the next owner is probably in tune with the environmental
aspects of these cars and is looking to reduce their
carbon-footprint as part of an ongoing lifestyle statement.
BCA has previously surveyed a cross-section of professional
buyers on their attitudes to alternative fuels. Buyers prefer
factory-fitted LPG units to retro-fitted, with the view that these
are easier to retail. While there were few concerns over modern
conversions, buyers raised issues on the older, higher-mileage
examples, with worries that older LPG units are unreliable.
BCA also asked for anecdotal evidence on when they might buy
alternative fuelled cars in the future. Responses included “only to
a customer pre-order”, and “to offer a retail alternative to
diesel”. Other responses included “if volumes increased
significantly in the marketplace” and “if there were a number I
could choose from”.
The major issue for anyone – dealer, business-user or
motorist – wanting to buy used alternative fuelled vehicles is
supply. A quick look at BCA’s online Auction View stock locator
found just 60 LPG, hybrid and electric vehicles – cars and
commercials – listed on 1 November. This is fairly typical of the
low market penetration and compares to the 10,500 plus vehicles BCA
had consigned for sale at that time.
As the market for alternative fuelled cars is small it can
make them difficult to value. But whatever the volumes might be,
the usual rules of remarketing apply – presentation and condition
is vital and a good specification will help to attract the bidders.
As buyers may raise concerns about the reliability of alternative
fuelled vehicles, make sure the vehicle is serviced at the correct
intervals during its working life and provide a complete service
history at the time of sale. Consider providing an independent
mechanical condition report as well – your remarketing partner
should be able to conduct this for you. And if the vehicle needs an
MOT soon after the time of sale, get it done early as this will
help promote buyer confidence.
