Following the UK Court of Appeal judgment on Friday 25th October, we took the decision to pause new business from Monday 28th October while we worked to mitigate the legal implications to protect our dealers, brokers and customers.

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The Motor Ombudsman’s (TMO) latest complaint data regarding EVs from Q4 2023 is very interesting. Just 0.4% of all new EV registrations in the UK made a complaint; as the TMO noted, it illustrated “a positive purchase and ownership experience for today’s EV adopters.”

Broken down by individual categories, here is how the complaints lined up;

1. Customer service and purchase issues (29%)

Mirroring the trend seen throughout 2023, customer service issues at the point of purchase and during ownership remained the key driver of complaints about EVs during the final quarter of the year. They made up the same proportion of disputes as in Q3 (29%).

Concerns stemmed from factors such as a lack of transparency about vehicles with existing recalls at the point of sale, remedial recall work taking time to be carried out, administrative and documentation errors, and businesses supplying courtesy cars in substandard condition.

The proportion of complaints relating to the chassis and motor areas of the vehicle fell by three percentage points to 17% from 1 October to 31 December, down from 20% seen during the two preceding quarters. Examples of vehicle parts in this category that led to customer dissatisfaction included the suspension, tyres, and brakes, with failures, faults, and defects all in the spotlight during Q4.

Problems resulting from electrical systems and software were up very slightly. EVs are so heavily reliant on electrical systems that when problems occur, they can cause more pronounced operational issues with vehicles. 

4. Interior and cabin systems issues (11%)

Interior and cabin systems saw a one percentage point rise in the fourth quarter. 

Concerns encountered with the vehicle exterior dropped to 8%.

Disputes about an EV’s on-board charging system rose from 5% in Q2 to 6% in Q3.   Being unable to achieve advertised charging speeds was a point highlighted.

Battery issues fell by four percentage points from 10% in Q3 to 6%.

Range concerns, which principally result from consumers not achieving the advertised distance for a full charge, drove the fewest number of disputes once again during the last quarter of 2023, mirroring what was witnessed in Q3. However, complaints increased in this area (from 1% to 5%).

What I find particularly interesting and useful to dealers and consumers is the low number of disputes about the core battery/charging./range issues that are likely to be so important to buyers considering making the switch to an EV.

Whilst the Motor Ombudsman's report shows a positive ownership experience for today's EV adopters, take a look at why some consumers are still hesitant. 

Latest EV dispute data from the Motor Ombudsman

I’m always interested in timely insights about what motivates customers to choose their cars, especially used cars. The Motor Ombudsman has just published such information based on a sample of 2,050 UK adults with a driving licence, aged 17+. The data was collected between 16th and 20th February 2024.

The importance of bricks & mortar dealers

Peace of mind when buying a used car is important; from a consumer protection and aftersales perspective, a physical dealership offers this over a private sale. The Motor Ombudsman’s research supports this:

48% of respondents looking to buy a used car stated that going to an established bricks-and-mortar seller reassured them that a car had likely undergone rigorous checks before going on sale.

Furthermore, 43% of survey participants wanted a safety net if something went wrong with their car after they bought it, as they would have more legal rights than if they had sourced the vehicle via a private seller.

38% would prefer to visit a showroom for the greater opportunity to view and understand a car’s provenance, i.e. the history, including its servicing record and accompanying documentation, before purchase.

34% said that they would often be able to purchase an extended warranty agreement to help safeguard them from the burden of costly mechanical or electrical failures, should these occur later down the line.

However, only a third of survey participants cited that they would steer away from a private individual.

The support for dealers is good but does point to an opportunity for dealers to enhance the peace of mind message, promote how long they have been in business, awards won, local community engagement, and added-value peace of mind products, such as extended warranties. Promoting cars leads the way in their online presence, but I wonder if promoting these other attributes could help add additional reassurance value. Based on this latest research, I’m pretty sure it would help.

For respondents who would opt for a used car this year, here is the expected fuel type they expect to choose:

While petrol leads the way, that hybrids outrank diesel so significantly and that one in ten buyers will be in the market for a BEV shows a clear trajectory; after all, last year, BEVs accounted for just 1% of used sales.

The key takeaway is that whatever your view on BEVs, they will become a prominent part of the used car mix very rapidly. If 10% of all used cars sold this year are BEVs (and this would represent incredible year-on-year growth), then stocking them will make perfect sense.

Latest research from the the Motor Ombudsman shares fresh insights into consumer buying habits. Find out more. 

Fresh customer insights on used car buying

Demand for used electric vehicles surged a massive 81.5% YoY in February, which, combined with a -1.1% fall in supply, drove a whopping 83.6% increase in Market Health, according to recent data published by Auto Trader.

At the same time, demand for used petrol cars (6.2%) was only just ahead of supply (5.6%), resulting in a conservative 0.6% increase in Market Health.

This positive news for EVs was in stark contrast to a small-scale research item of 66 independent used dealers published recently that suggested  that ‘half of used motor dealers are reluctant to buy second-hand EVs.’

Appreciating the market dynamics over the last 16 months and the absolute agility of dealers is needed to understand the position.

Early last year, the supply of EVs exceeded demand for the first time, and that supply/demand trajectory continued upward for most of the first six months of the year. Supply was driven by the rapid growth of EVs over recent years, notably to fleets, as they entered the remarketing cycle.

In the second half of 2023, EV values started to approach price parity with petrol and diesel cars and demand picked up; they found their price level. Since then, the supply/demand equilibrium stabilised until February’s dramatic growth.

Consumer demand is picking up, petrol and diesel prices are rising, electricity will fall in April, there is greater awareness and confidence in EVs, and many people are keen to be greener if they can afford it.

So why won’t dealers stock EVs? I suspect this is primarily based on some ‘bruising’ taken last year when values fell. Certainly, there are some EV sceptics in the dealer community, but all my experience suggests that once demand for EVs rises, and we must accept that used EVs still have a modest market share, dealers will start to stock them. Growth will inevitably happen as new battery electric vehicle (BEV) sales begin to rise, and based upon the Zero Emission Mandate, this year, a little over one in five new cars will be a BEV.

According to recent data, demand for used electric vehicles surged a massive 81.5% YoY in February. Hear from Commercial Sales Director, Debbie McKay, on what this means for dealers. 

News - April 2024

Latest EV dispute data from the Motor Ombudsman

Fresh customer insights on used car buying

Consumer demand for used EVs is rising

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