Jordan Brompton, co-founder and CMO of myenergi, explores the latest second-hand EV sales data and discusses whether dated views and misconceptions are holding back the transition to electrification.

According to insight from the Society of Motor Manufacturers and Traders (SMMT), more than 30,500 second-hand battery electric vehicles (BEVs) changed hands in the second quarter of 2023, an 81.8% rise on the same period last year.[1] Used plug-in hybrids (PHEVs) also grew in popularity, with sales up 11%.

In terms of availability, a quick search on Autotrader brings up more than 16,500 results for used BEVs and nearly 11,000 results for used PHEVs, spanning 47 manufacturers and hundreds of models – from hatchbacks and hybrids to coupes and convertibles. The choice is truly vast, and availability is immediate.

While you can’t miss the mix of top-end nearly new models pushing upwards of £100k, there’s also a huge choice of cars for far less than £17,920[2] – the average UK spend on a second-hand vehicle. You might have to compromise a little when it comes to colour, features or mileage, but the listings are packed with brilliant buys!

The used EV market should be thriving – and such impressive growth figures suggest that progress is building fast. However, when you dig beneath the surface, the reality is a little different. Indeed, as a percentage of total used car sales, plug-in vehicles comprise less than 2% of transactions. There seems a dichotomy between the growing opportunity and lacking consumer confidence.

But why? Well, even though the choice is there, many motorists are still put off by misinformation. From battery systems failing and range figures plummeting, to planned obsolescence after an initial three-year finance deal is up, we’ve all heard the rumours.

But what’s the truth? How long can you really keep an EV? When will you need a new battery? Does the range start to drop quickly after purchase? What’s more, with energy market volatility seeing electricity prices rocket, do the risks really outweigh the benefits of EV over ICE?

Are used EVs a ticking time bomb?

In short, no. While perceived battery life is still a concern for some motorists, experts suggest that the average electric vehicle battery (EVB) can last almost 20 years, or 200,000 miles – a significantly longer lifespan than the typical internal combustion engine and far longer than today’s average length of vehicle ownership. What’s more, while battery efficiency will eventually start to drop, the average EV will lose just 2% of accessible range per year – an arguably minor decline.

It might sound obvious, but the latest models have been designed to far outperform their petrol and diesel predecessors. Significant investment has been made by manufacturers into designing ever-more capable vehicles to suit the needs of tomorrow’s drivers and it really shows. The EVs of today, which include those on our list, have excellent ranges, impressive durability and are cheap to maintain thanks to fewer moving parts.

The anti-EV movement will tell you otherwise, but electric vehicles aren’t designed to fall apart after a few years. They’re not programmed to break, to slow down, to lose efficiency or to rack up costly servicing bills. Vehicle manufacturers are pioneering the future with cars that really are here to stay.

So, while scaremongering is commonplace, switching to electric really is the sensible option for motorists. Need a nippy run-around for your trips into town? There’s countless hatchbacks that’ll suit you down to the ground. Need something a little bigger for motorway journeys? You can pick up an SUV, saloon or estate that’ll keep on going for another decade.

But what about the elephant in the room? The volatile energy market and high electricity bills. Will your used EV quickly become a drain on your finances? Will the price cap rise far above falling petrol prices, leaving me between a rock and a hard place? All important questions but, again, motorists shouldn’t be concerned.

While the environmental benefits of EVs are widely publicised, the financial benefits are equally as impressive. At current prices, a small hatchback would cost less than £650 per annum for the average driver to run if they charge at home. Even though these prices will increase when the energy price cap changes, EVs will still be the most cost-efficient option by far – especially with fuel prices pushing £1.50 per litre (for diesel) and an average tank (55 litres) costing upwards of £80.

The real cheat is if you have a solar array and an eco-smart home EV charger, like the myenergi zappi. In this instance, you can effectively charge for free by self-consuming your self-generated renewable energy – zero fossil fuels, zero reliance on the grid, zero emissions travel. Of course, it requires an up-front investment, but the ability to take total control of your home energy use is an attractive one.

So, should you look to the used market for your next EV? Well absolutely – there really is something for everyone. What’s more, with a huge selection and less than average demand, you’ll likely grab a steal!

As we move ever-closer towards 2030, however, the used EV market must become a key part of the UK’s transition to electrification. The laggards and self-professed petrolheads will continue to spread misinformation, but the reality is really quite different from the current driver perception. Let’s not allow rumours to slow the transition to electrification.

[1] Second-hand electric vehicle sales soar to record levels | Business News | Sky News

[2] https://plc.autotrader.co.uk/news-views/retail-price-index/

Car manufacturers continue to develop connected consumer experiences, opening up precious new revenue streams and opportunities to improve the customer experience of their marques and foster deeper brand loyalty. Olivier Bessi, Head of Fintech solutions at Star, looks at the opportunities for fintechs in the connected car ecosystem.

The value of in-car payments could reach $86 billion by 2025, up from $543 million in 2020, according to Juniper Research. Car makers are keen to seize the opportunity to drive revenue growth and foster long-term business sustainability, thus becoming active players in the digital economy. How can payment specialists get involved despite not being experts in the automotive space?

Providing drivers with the ability to make payments – for anything from parking, tolls, fuel and food on the go to roadside assistance –  directly from the vehicle dashboard, provides a speed and convenience turbo boost that could significantly increase brand loyalty for car manufacturers.

Further opportunities to customers are also available. For example, if a customer has a flat tire and needs roadside assistance but can’t afford to pay for one upfront, providing buy now, pay later (BNPL) solutions as a roadside payments solution could boost subscription-related services and further foster customer loyalty. This innovative approach not only offers immediate financial relief to customers in unexpected situations but also presents an additional untapped revenue stream for car manufacturers, diversifying their service offerings. 

Navigating go to market complexity

With no heritage of payment solutions, the payment ecosystem is a complex one to navigate for car manufacturers.

Finding the right financial ecosystem partners will be critical for them as they develop hybrid or capsule solutions for car users; pinpointing use cases that truly enhance the customer experience – beyond the obvious, like paying for tolls and gas.

For example, paying for quick service food, groceries and scheduling and paying car maintenance are all potential applications. Data and AI technology baked into in-car systems could suggest relevant goods and services, anticipate drivers’ needs, and shed light on desires they didn’t even know they had, providing a true open road experience.

Manufacturers may want to build their own in-car systems to empower dealerships and more directly manage the impact the experience has on customer loyalty but building an operating system from scratch, the approach being adopted by Mercedes for example, is an enormous investment.

There is a huge opportunity for fintechs to work together to help manufacturers overcome the multiple hurdles such as compliance with payment regulations and the security of sensitive customer information.

Fintech’s innate understanding of consumers’ payment needs will help manufacturers shape their offerings accordingly and create sensible subscription models that lead them to their endgame.

Where are the opportunities?

Payment providers and fintechs can help car manufacturers with several nuanced, technical aspects beyond building or outsourcing. Keeping the customer as the focal point and devising a holistic approach to payments that enables access to a strong network of partners is crucial.

When it comes to the secure and seamless protection, storage and analysis of customer transaction data for example, they can short circuit the journey to full connectivity and overcome technical and regulatory hurdles such as data encryption and privacy laws, breach prevention measures, adherence to industry-specific regulations like the Payment Card Industry Data Security Standard (PCI DSS), or access to major card schemes as a principal member. 

The future customer journey is the endgame to keep in mind for car manufacturers and fintechs alike. Partnering will get you there quicker and deliver a consistent digital payment experience across brands and vehicles, increasing adoption, decreasing confusion and making it easier to onboard new merchants as the retail ecosystem expands.

Monica McDonnell, Automotive Industry Consultant at Teradata

Vehicle data also provides important and valuable insights across the whole of the customer lifecycle. It is fundamental to diagnostics and servicing, but it can also illuminate driver and passenger behaviours that can inform future updates and upgrades to existing vehicles, as well as longer term research and development trends.

Improving customer experience over time

Today, thanks to digitalisation and the ability to update software, apps and functionality, people expect many of the products they buy to improve over time. Smartphones, computers and many other consumer electronic devices receive regular updates to fix bugs and add new capabilities. The modern connected vehicle can also be updated in the same way, and increasingly drivers and their passengers expect new functionality, performance tweaks and improved experiences as part of their ownership. This presents automotive businesses with challenges and opportunities. They can constantly evolve the customer experience, engaging and delighting customers by regular vehicle improvements. But they also need to focus their R&D spend on solving real problems and offering the capabilities that will have the broadest appeal to their customer base.

Learning from gaming

The world of massively multiplayer online gaming provides and unexpected but illuminating model. It shows how automotive companies can meet these challenges and unearth and capitalise on new customer experience opportunities. For example, a publisher of a popular online game tracks the gameplay of every participant in minute detail. From this granular detail it can understand the behaviour of individual players, which aspects of the game are most popular, where players prefer to congregate, what items and abilities they prefer to use.

Not only does this information help the publisher match players with similar skill levels to ensure all have enjoyable gameplay, but it can understand which areas of the game to develop further to keep players playing.

Scoring interaction

The same approach can be used with data from connected cars. Infotainment, comfort and driving style features can be scored by their level of interaction. Decisions can be made about those falling towards the bottom of the scale. Why are they not used? Is it because they don’t fit the needs of customers; are they not aware of them; or perhaps they don’t work as intended? Did they try them and find the experience less than satisfactory, or not sufficiently engaging to return? In future many of the apps available in connected cars may be 3rd party products, but the experience of using them still reflects on the brand. So, it is important to collect evidence to understand when and how apps or features are not living up to expectations. With this evidence OEMs and developers can gain insight to drive decisions on the future of their apps.

Improve, promote or remove

Using vehicle data, R&D teams can make informed decisions on where to invest. Should under-utilised features be improved, better promoted, or simply dropped? Matched with customer data, and 3rd party information ranging from time of day to weather, these insights can help make sense of the growing numbers of features that can be modified after purchase. All of this may need to be done on a per-market basis to reflect the differing behaviours of drivers in different market segments.

Some analytics companies are already working with automotive OEMS to analyse vehicle data to understand quality problems. If certain features have high volumes of fault reporting, or rapid increases in rate of reports, they can be alerted to quickly identify root causes and prioritise resources to find fixes. Similar principles can be applied to enable rapid responses to features delivered in part or completely by software.

Not just revenue

Delivering consistently high-quality customer experience is the thread that links R&D efforts into the whole customer lifecycle. The focus must be on constant improvement of features and providing experiences that add to the performance and customer enjoyment of the vehicle. In addition, analysis of the usage of value-added features can of course highlight new revenue opportunities. In an increasingly digital and connected world, consumers of all types expect service levels, features and functionality to improve over time. Using vehicle data to understand how customers experience your product and brand is essential to meeting these expectations. Sometimes offering a new service or benefit through an update can make all the difference to reengaging and rekindling brand affinity. Using data to ensure all aspects of the vehicle are performing as expected also has important implications for safety of vehicle occupants and other road users.