Chancellor Rachel Reeves is being urged to take immediate action to support the uptake of second-hand electric vehicles.
The Chancellor will unveil the Government's 2025 spending review next week, which could have an enormous impact on the UK's electric vehicle revolution.
Speaking earlier today, Reeves announced £15billion for transport projects across the nation to expand bus networks, add more tram stops and boost train access.
Despite the huge investment, industry experts are calling on the Labour MP for Leeds West and Pudsey to consider boosting support for drivers looking to buy electric cars.
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A leading industry body has called on Chancellor Rachel Reeves to introduce new measures for EVs
PA
The British Vehicle Rental and Leasing Association (BVRLA) has urged Rachel Reeves to provide targeted support for the used electric vehicle market.
The industry body has already met with Future of Roads Minister Lilian Greenwood to highlight the issue, but has now written to the Chancellor.
It stresses that a weakening used electric car market poses a "significant risk" to the UK's EV transition, net zero targets, and economic growth.
In the first quarter of 2025, more than two million second-hand cars were sold, representing a 2.7 per cent jump compared to the same time period last year.
Data from the Society of Motor Manufacturers and Traders (SMMT) shows that 65,850 used electric cars were sold, representing a record 3.3 per cent share of all vehicles sold.
However, the BVRLA is calling for more to be done to support the industry after outlining a "stark reality" to the Chancellor.
The letter highlights that "used electric vehicles depreciate much faster" than petrol and diesel counterparts, with values dropping by "over 50 per cent in two years".
The BVRLA argues that this "undermines leasing and financing models", as well as threatening the affordability of new EVs.
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It adds: "Given the close interdependence between the new and used markets, the BVRLA is calling for a package of time-limited, targeted interventions - including grants or tax relief for used BEV purchases, and measures to stabilise residual values.
"The association has shared detailed proposals with Treasury officials, including a joint paper with the Green Finance Institute outlining a potential Market Stabilisation Scheme."
It described the upcoming spending review as a "key moment to restore confidence" and ensure the switch to EVs supports the economy and provides environmental benefits.
Alongside the BVRLA, the SMMT has called for Labour to halve the rate of VAT on new electric cars and scrap or amend the Expensive Car Supplement to ensure more drivers can access EVs.
Second-hand electric cars between three and five years old are cheaper than equivalent petrol models
PAAccording to the latest data from online car marketplace Auto Trader, the average price of a used car in May was £16,825, while a used EV costs £24,370.
The average price of a second-hand EV has fallen 7.4 per cent year-on-year, while petrol and diesel prices rose 0.5 per cent and two per cent respectively.
Surprisingly, an electric car between three and five years old is currently cheaper at £18,266, than a petrol vehicle of the same age (£18,731).
Chancellor Rachel Reeves will deliver the spending review on Wednesday, June 11, with many in the motoring industry hoping for a boost in funding for electric vehicles.
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