Happy customer sat in his car holding his new car keys

Independent research commissioned by V12 Vehicle Finance shows a 41% increase in the number of independent dealers that have secured consumer finance for used EVs, up from 29% in 2022 to 70% in 2023.

The survey of 100 dealer representatives indicates buyers are much more willing to take out finance to purchase EVs, even though other cheaper options, such as conventional petrol and diesel vehicles, remain available.

Along with surveying dealers, we surveyed 1,000 people in the UK who had the intention of buying a car in the next three years, with 15% of those saying they are considering an EV as their next car.

However, the dealer-led survey also showed that over 80% of independents have forecourts comprising either less than 10% or no used electric vehicles, hinting that many are still favouring petrol and diesel cars.

The survey also revealed that dealer preferences for the finance they use to stock their forecourt are also changing. Our survey found that dealers using unit stocking finance jumped by 10%, from 40% in 2022 to 50% in 2023. By contrast, the percentage of dealers self-funding their forecourts through their own cash has dropped by the same margin, from 56% down to 46%.

The numbers indicate that dealers are finding more success with using unit stocking finance for their businesses.

A dealer handing car keys to a happy customer

Unit stocking finance is a great way for dealers to make quick decisions and purchases when they go to auctions or are buying part exchange vehicles, which means dealers can free up their cash flow for other priorities. At V12 Vehicle Finance, our unit stocking finance facility helps to keep dealers ahead of the game, and we aim to streamline processes for dealers and make things as straightforward as possible.

Under our facility, dealers can get all the funding they need for their cars, including the hammer fee, auction fees, VAT, and even repair costs. They will have one payment to make and can access their funding facility through our portal. What's more, we've integrated our unit stocking finance with our auction partners and DMS providers to make things even slicker for time-poor dealers."

Click here for more information on our range of motor finance funding options