AM News Show Podcast: “Wealth is at the heart of car buyers’ interest in electric vehicles”

Auto Trader brand manager Marc Palmer has claimed ‘wealth areas’ are the UK’s hotspots for interest in electric vehicles (EVs) as the cost of living crisis continues to escalate. tighten the purse strings of car buyers.

Fresh off the posting of information on the online used car marketing website that suggested the UK was in danger of ‘running out’ of people wealthy enough to buy electric cars, Palmer joined the head of Cap HPI strategy forecaster Dylan Setterfield on the AM News Show to discuss Electric Vehicle Adoption and the Changing Used Car Market.

And while Setterfield has admitted that predicting used car values ​​three years from now has been made “virtually impossible” by the COVID-19 crisis – with the war in Ukraine now adding to the uncertainty – it seems that the regions of increased traction of electric vehicles are easier to predict.

“The correlation between charging stations and interest in electric vehicles doesn’t exist, not even the ultra-low emissions zone or the clean air zones,” Palmer said.

“Wealth is (the key). It’s not a North/South or urban/rural divide, where people have a place to charge the car and the means to afford it, that’s where we see the most interest.

Palmer’s comments echo those of Auto Trader’s chief commercial officer, Ian Plummer, who said at a COP26 side event that electric vehicles would remain the “reserve of the rich” without targeted incentives.

This week’s first-quarter new car registrations data from the Society of Motor Manufacturers and Traders (SMMT) showed the Tesla Model Y topped the best-selling charts and the Tesla Model 3 finished second – nearly of 1,000 units ahead of the Vauxhall Corsa.

While registrations fell 14.3% overall last month, electric vehicle registrations rose 78.7% to a record 39,315.

“Right now, there are enough wealthy people who care enough about electric vehicles to keep it rolling,” Palmer said.

With private investment increasingly committed to creating infrastructure for electric vehicles, it also seems likely that wealthier parts of the country could also benefit from an acceleration of charging points.

Palmer told the AM News Show, “Private investors are coming in with money to spend on infrastructure because all of a sudden a lot of them can start making money off the auto when ‘previously it was to the oil companies and there was no such opportunity.

“That point where you put your infrastructure, that’s where investors need information.”

Setterfield discussed the affordability of electric vehicles in the used industry with AM Editor Tim Rose and Editor Tom Sharpe on the latest edition of the AM News Show.

He also reflected on the challenges of the past two years and how the industry’s current headwinds – including supply issues triggered by Russia’s invasion of Ukraine – now seemed set. to have an impact on the market.

Setterfield said: “It’s been virtually impossible over the past two years to try to determine even in the next few weeks what’s going to happen with the market, let alone in a year, three years.”

He added: “Look at our estimates of how things are going to develop over the next 12 months, the end result hasn’t really changed much, but the underlying reasons why we’ll end up there have completely exchange.”

Produced in partnership with Armchair Marketing, the AM News Show is available via Youtube, Spotify and Apple Podcasts.

Previous guests at the show include Julia Greenhough, Chief Marketing Officer of TrustFord, Callum Wood, Chief Commercial Officer of CitNOW, John O’Hanlon, Managing Director of Waylands Automotive, and Umesh Samani, Chairman of IMDA.