Used electric cars are at a tipping point where both consumer interest and values are increasing rapidly, delegates heard at the Annual General Meeting of the Vehicle Remarketing Association.
Fraser Brown, director at specialist used electric vehicle (EV) dealer Browns of Richmond and motor retail consultancy Motorvise, said the market had grown by 32% in the first quarter of 2026 on top of a 45% increase in the previous 12 months.*
“Recent increases in petrol and diesel prices have definitely been a factor. We can show potential buyers that, as long as there is space at home for a charger, they should save a typical £154 a month on a two-to-three-year-old small car by going electric.
“Buyers come to us in a state we describe as ‘EV curious,’ and we embark on a process of education about what they can expect from electric car ownership. By their third conversation, we have generally won them over – and those that are the biggest sceptics initially often become the biggest advocates.”
His business had grown from retailing around 20 units a month at the start of the year to 130 now and there were plans to open several further sites across the UK.
“We concentrate on EVs that we know provide the best deal for customers and are the country’s biggest retailer of used Teslas but also sell many BMWs, Kias and indeed, almost any electric car with a full service history and battery health check.
“Our business model is based on a fast turnaround of 19 days, which is possible because of our processes and the fact that consumer interest is so high. We very much believe that, even though EV supply into the used market is set to increase rapidly, demand will continue to outstrip the available stock and prices will rise accordingly.”
Fraser’s optimism was supported by Stuart Pearson, COO at BCA, which hosted the meeting at their remarketing centre in Perry Barr, Birmingham.
“We’ve seen first-time auction conversion rates increase from around 70% to more than 90% in recent months. Whilst Teslas account for around half of this volume, demand is now strong across most electric vehicles and it feels as though the market has turned a corner.
“Even in the van sector, which has been much slower to electrify than cars, there are signs of growth. Whilst EVs account for only a small proportion of our overall light commercial vehicle sales, acceptance among potential buyers is growing. As more customers recognise that a used electric van can be a practical option when its range and payload meet their requirements, they are increasingly attracted by the highly competitive running costs it can deliver.”
Motor finance expert Graham Filmer of Rocket Associates explained that lending for used electric vehicles was now nearing normalisation, reflecting this market growth.
“Initially, financing used electric cars was seen as an unwelcome risk, simply because they were a new phenomenon and there was little data available. That situation has changed dramatically and, although there may be stipulations such as a battery health check, lenders now view EVs much like any other car.
“The only exceptions are again where there are unknown factors, such as financing vehicles made by new entrant Chinese manufacturers. The issue here is the difficulty of predicting which companies will still be present in the UK in the medium term. The view is that the market isn’t big enough to accommodate them all.”
Kevin Lamb from Alvarez and Marsal, a global consultancy specialising in turnaround management which works with many UK dealers, said some smaller franchise motor retailers may suffer from not embracing this used EV surge.
“Some franchise dealers often had their fingers burnt from the residual value collapse that occurred when electric cars first entered the used market and are not keen to repeat the experience. Also, focus has been on retailing new EV sales because of the Zero Emissions Vehicle Mandate and combined margins that are frequently thin.
“Moving decisively towards the used electric car market can appear as both a risk and an area that requires investment in areas such as training sales staff. While there is a strong temptation to stay with what they know the used electric car market represents some real opportunities and failing to grasp may lead to some financial stress.”
The meeting attracted over 50 delegates in person and more online, and Philip Nothard, VRA chair, said the AGM represented an important annual focal point.
“Except for the VRA Summit event, this is our most important gathering of the year and alongside the statutory AGM business we must undertake, we see this as a valuable opportunity to showcase the kind of highly insightful, thought-provoking information that we provide to our members at every meeting of our organisation.
“Today’s discussion, where a common thread emerged about the relatively sudden momentum seen over recent months in the used EV market, is a good example. Our speakers presented a comprehensive picture of an important development.
“This was the best attended VRA AGM ever, reflecting our ever more prominent role in the sector. If you work in remarketing, membership is a must.”
