Are EVs widening the gap between rich and poor motorists?

The cost of living increases are affecting all of us. Petrol and diesel prices continue their upward price march, as does VED (car tax) for most internal combustion powered cars. In many ways, now is an ideal time for electric vehicles (EVs) to thrive, as motorists seek to reduce running costs. Yet, while headlines are reporting significant increases in new EV registrations, most of them are financed by corporates. Private individuals, therefore, do not benefit from the tax incentives that help to offset the relatively high capital cost of driving electric.

Used car transaction data, therefore, provides a more accurate picture about how private motorists spend their money. The SMMT highlights a 56% increase in used EV sales during 2021's last quarter, although it must be considered that this figure is from a fairly low base. While Ian Plummer, Auto Trader's Commercial Director, reported that used EVs make financial sense only once they reach four years old, the same could be said of virtually any motorcar.

By analysing its online algorithms, Auto Trader found that more affluent areas are registering the strongest interest in EVs by far, with Bath, Harrogate, plus the more prosperous areas of south Manchester and London being highlighted. The findings lead Mr Plummer to conclude that,

"The recent rapid increase in sales of EVs masks a huge divide between wealthy motorists and the mass market."

The ultimate question is, therefore, how long will it for EVs to cease being the preserve of the wealthy and gain mass market acceptance?

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