Startline Motor Finance has launched its first-ever funding options for used electric cars, signalling a significant vote of confidence in the stability of the used electric vehicle (EV) market.
The new funding initiative will extend Startline’s full range of hire purchase and personal contract purchase plans to electric vehicles, with rates and terms equivalent to those offered for petrol and diesel models.
Paul Burgess, CEO of Startline, described the move as a decisive endorsement of the electric car market’s evolving stability.
“The used electric car market has faced considerable volatility over recent years, and our initial stance was one of caution due to perceived risks,” Burgess said. “However, recent data indicates that the market has stabilised, making it an opportune time for us to offer funding.”
Burgess noted that while the market for used electric cars has been turbulent, characterised by significant fluctuations in values, recent trends suggest that these issues are diminishing.
“We believe the dramatic swings in values are likely over, and this is a strategic moment to enter the market with our funding options,” he added.
Currently, used electric cars represent a small segment of the market, with approximately one in 40 sales involving these vehicles.
However, Burgess anticipates rapid growth due to the expected increase in defleeting from the company car sector.
He acknowledged ongoing consumer hesitation towards used electric cars but pointed out that their competitive pricing and improved value are gradually shifting perceptions.
“Financing plays a crucial role in making electric vehicles accessible,” Burgess explained. “Given that many used electric cars are priced above the average used car, our financing products can make these vehicles more affordable and reduce residual value risks for buyers.”
Supporting this positive outlook, Startline’s September Used Car Tracker report shows that more than 80% of respondents expect to be driving an electric car by the end of the decade.
“If this sentiment translates into reality, we foresee a substantial shift towards electrification in the used car market,” Burgess concluded.
