The Dutch non-profit research organization TNO (Toegepast Natuurwetenschappelijk Onderzoek) survey shows that 48% of potential second-hand car buyers prefer an EV.
The survey asked 1,512 respondents which type of car they would buy on the second-hand market in the five years to come. Almost half (48%) preferred an electric car, and 59% thought it feasible to buy one. The most important factors of dissuasion or persuasion were price, range, and mileage.
Five categories
A ‘latent class analysis’ divided the sample into five categories of buyers. First comes the ‘EV pioneer’, a group representing 15% of the sample that chooses the electric car in 95% of the cases. Then comes ‘the follower’, a second category representing 12% of the total sample, who are prepared to go electric in 87% of the cases.
A third category is ‘the price-conscious buyer’, representing 14% of the sample. They choose an electric car in 61% of the cases. The biggest category is that of the ‘assurance seeker’, 33% of the total sample. They will choose an electric car in 44% of the cases. Finally, the ‘fossil driver’ represents 27% of the sample. They will only choose an EV in 3% of the cases.
Possible scenarios
The Dutch Ministry for Infrastructure and Water Management asked TNO to organize this survey. It wanted to know which aspects were relevant for potential EV buyers and which scenarios could be drawn in the process.
A similar survey was already conducted in 2023 for buyers of new cars; now, the focus was on the second-hand market for EVs in the Netherlands. The latter developed significantly in the last years: where it represented 1.5% of the total second-hand market in 2022, it rose to 2.2% in 2023 (+50%) and is still increasing.
A combination of the most optimistic scenarios would lead to a second-hand car fleet that is 70% EV by 2040. In reality, this seems to be wishful thinking. The TNO researchers also point out that there is still a gap between what people say and what they actually do.
To reach electrification goals as soon as possible, it is crucial to get the groups ‘followers’, ‘price-conscious buyers’, and ‘assurance seekers’ on board. Together, they represent almost 60% of the respondents. Lower EV prices and higher fossil fuel tariffs determine their choice.
At the same time, confidence and security must be stressed by underlining EVs’ progress almost every day, say the TNO researchers. The electric range is increasing, and more and more EVs can now easily tow more oversized loads, like caravans or other kinds of trailers, which is not unimportant in a country like the Netherlands. Finally, car vendors’ knowledge of EVs must be increased, and their enthusiasm must be stimulated.
Are older consumers more hesitant?
A recent Australian survey indicates that older consumers are more hesitant to buy electric cars. Out of nearly 13,000 responses on EV buying barriers, Compare the Market Australia’s comparison experts found that 41% of possible concerns about EVs cited came from baby boomers (58-year-olds and above).
In contrast, younger Generation Z adults (18 to 25 years old) had the fewest concerns about buying an EV, making up only 13% of total responses.
Amid a slowdown in EV sales, the top perceived reasons for avoiding buying a fully electric vehicle included battery longevity and potential replacement costs, the availability of public charging stations, and the purchase price.
There’s hybrid again
Consumers in Australia, the US, and Canada said they were willing to pay, on average, a US $1,300 premium for an EV over a conventional internal combustion engine (ICE) vehicle. However, electrified hybrid vehicles were the most preferred powertrain, overtaking traditional internal combustion engine (ICE) vehicles and full EVs.
“The barrier to enter into EV ownership has come down significantly in recent years, allowing motorists to access generally lower running costs, particularly when charging at home,” says Adrian Taylor, CEO of Compare the Market.
“But the transition isn’t happening overnight. Hybrids have appeared as a stopgap alternative while some wait to see how EV technology develops amid perceptions and myths. Some consumers still need time to overcome the hurdles of buying an EV.”
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