Dealer fears over the impact of the used EV residual value collapse are fading, with concern about electrification dropping to its lowest level since October 2022.
Only 33% of used car dealers now rank electrification among the biggest challenges facing the sector, according to the August Startline Used Car Tracker.
Electrification has fallen to fourth place in the monthly survey after repeatedly ranking as one of dealers’ leading concerns.
The figures indicate that retailers are beginning to move on from the sharp decline in electric vehicle residual values that damaged margins, reduced stocking confidence and left some dealers wary of used EVs.
Paul Burgess, chief executive of Startline Motor Finance, said stronger demand and growing market maturity were changing attitudes. “Dealer attitudes towards electric cars were understandably affected by the collapse in residual values seen a few years ago but increasingly, it appears that memory is fading and EVs are being seen as an opportunity rather than a problem.”
He added: “There has been extensive market feedback in the last few months about rising demand for EVs and this new figure underlines how the sector is beginning to show increasing maturity.”
Dealers turn attention to finance
Finance availability is now the biggest challenge facing dealers, cited by 55% of respondents. Concern remains below the 67% peak recorded in November 2025 but motor finance continues to dominate industry discussion.
Burgess said apprehension was understandable, although Startline’s own lending remained at normal levels. “Current concern over availability of motor finance is not the highest seen in our research but it is understandable dealers continue to feel some apprehension given its current profile.
“However, at Startline, we are continuing to lend at what might be considered normal levels and it is very much business-as-usual.”
The cost of technology ranked second at 45%, with 92% of respondents saying technology cost increases were running ahead of inflation. Dealer management systems and advertising platforms were identified as the main sources of concern.
Used car stock concerns decline
Stock availability was named by 43% of dealers, down from 69% in 2023. Startline said the gradual improvement reflected the easing of vehicle supply shortages caused by the pandemic.
The Startline Used Car Tracker is produced by APD Global Research and questioned 300 consumers and 60 dealers for its August survey.
