Last updated on December 8th, 2024 at 09:19 pm
In response to the growing number of electric vehicles (EVs) on UK roads, companies like Warrantywise have introduced a new warranty specifically designed for used EVs. The move comes as drivers new to electric vehicles have concerns over reliability. This is particularly true for consumers looking to purchase second-hand electric cars, where they may be outside the manufacturer/main dealer warranty. The new plan is set to offer greater peace of mind for buyers, addressing potential repair costs and maintenance challenges that may arise as EVs age.
The introduction of this EV-specific warranty marks a significant step in adapting the second-hand car market to the realities of electric vehicles. Early reports from the US showed that certain EVs experienced more issues that traditional petrol or diesel cars. As manufacturing has improved for EVs, those numbers have changed – but the impression remains.
While EVs are known for having fewer moving parts and lower maintenance costs in general, certain components, such as the AC power inverter or the battery system, can be expensive to repair or replace. Warrantywise’s new coverage is designed to protect consumers from these high costs, covering components such as the AC power inverter, DC to DC converter, power regeneration braking system, and both auxiliary and drive batteries.
The Changing Landscape of the UK Used Car Market
The UK used car market has long been a robust sector, with a steady demand for second-hand vehicles. Traditionally, petrol and diesel cars have dominated the market, but recent years have seen a shift towards EVs, spurred by the government’s push towards electrification and sustainability. According to the Society of Motor Manufacturers and Traders (SMMT), the sales of battery electric vehicles (BEVs) in the UK increased by over 75% in 2021. This trend has continued, with predictions suggesting that there will be close to 1.5 million EVs on UK roads by the end of 2025.
As the number of EVs grows, so too does the second-hand market for these vehicles. Many of the EVs now entering the used market are less than four years old and often come with higher mileage, as they were primarily sold or leased to business users. The average used EV now costs under £20,000, making them an attractive option for consumers. In fact, recent data from the AA suggests that used EVs are, on average, around 8.5% cheaper than their petrol or diesel counterparts after three years.
However, the shift to EVs has brought new challenges. While petrol and diesel cars benefit from a well-established network of garages and mechanics across the UK, the relative newness of EV technology means there are fewer garages equipped to handle the specific needs of electric vehicles. This has led to concerns among potential buyers about repair costs, especially once the manufacturer’s warranty has expired. Warrantywise’s new offering seeks to fill this gap, providing a much-needed safety net for those purchasing used EVs.
Fewer Parts Means Few Things To Go Wrong
The former CEO of VW told the media back in 2020 that EVs would have around 40% fewer parts than traditional fossil-fuel cars. This fact alone has sent shockwaves through the German car industry – because while vehicle makers will carry on selling cars, many of the supporting industries are facing extinction. The kind of parts and products that regularly experience issues on a petrol car, for example, simply do not exist in an EV:-
- Spark Plugs – Petrol engines use spark plugs for ignition, which wear out over time. EVs don’t have internal combustion, so no spark plugs are needed
- Exhaust System – EVs produce zero emissions, so they don’t have an exhaust system, including mufflers, catalytic converters, or exhaust pipes, which often need repair in petrol cars
- Fuel Injectors – EVs don’t use fuel at all, so there’s no need for fuel injectors, which can clog and need periodic cleaning or replacement in petrol cars
- Timing Belt – In internal combustion engines, the timing belt synchronises the engine’s valves and pistons. EVs don’t have this component because they don’t have an engine with valves and pistons
- Oil Filters and Engine Oil – EVs don’t require oil changes because they don’t have an engine with moving parts that need lubrication, eliminating oil filters and engine oil maintenance
- Radiator and Coolant – Although some EVs have cooling systems for their batteries, they don’t have the same complex cooling systems with radiators and coolant as petrol cars, which are prone to leaks and overheating
- Clutch – Manual petrol cars require clutches to engage and disengage the engine from the drivetrain. EVs are typically single-speed and don’t use a clutch
- Alternator – Petrol and diesel cars use alternators to generate electricity for the battery. EVs don’t need an alternator since they rely on their onboard battery for all electrical power
- Air Filters (for combustion) – Petrol cars require air filters to ensure clean airflow into the engine. EVs don’t have engines that require air intake, so no need for this part
- Transmission (Complex Gearboxes) – While some EVs might have simple transmission setups, they lack the complex multi-speed transmissions that petrol cars have, reducing the need for transmission fluid changes and repairs
EV-Specific Coverage: What’s Included?
The standard EV plan from Warrantywise includes coverage for essential components such as the AC power inverter, DC to DC converter, and power regeneration braking system. For those looking for more comprehensive protection, the EV Plus plan includes coverage for the drive battery, which can be one of the most expensive components to replace in an electric vehicle. This added coverage is likely to be a major selling point for both car dealers and private buyers, offering reassurance that costly repairs will be covered.
In a recent example, Warrantywise authorised a repair request for a Renault ZOE that exceeded £5,000 due to an electrical fault. This highlights the potential costs involved in EV repairs and underscores the value of having an extended warranty in place.
The company also emphasises the transparency of its plans, which are backed by the Warrantywise Reliability Index. This index provides consumers with data on the reliability of different vehicles, helping them make informed decisions when purchasing a used car. Edd China, a well-known TV presenter and EV expert, serves as the final arbiter for Warrantywise claims, ensuring that the process is fair and transparent.
Why This Matters for the Future of EVs
As the UK moves towards its goal of net-zero emissions by 2050, the government has introduced various incentives to encourage the adoption of electric vehicles. These include grants for new EV purchases and the planned ban on the sale of new petrol and diesel cars by 2030. However, the second-hand market for EVs is becoming increasingly important as more consumers look to make the switch to electric at a lower cost.
Yet, despite the growing availability of used EVs, some consumers remain hesitant due to concerns about reliability and the cost of repairs. Warrantywise’s new EV-specific warranty aims to address these concerns, offering a level of protection that was previously lacking in the market. By covering key components and offering the option to include the drive battery, the new warranty could help to boost consumer confidence in used EVs.
The Future of Used EVs
With the used EV market expected to grow significantly over the next few years, having options like the Warrantywise EV warranty could play a crucial role in encouraging more consumers to consider second-hand electric vehicles. As the cost of new EVs remains relatively high, the used market provides an affordable entry point for many buyers.
At the same time, the complexity of EV systems and the limited number of experienced mechanics available to work on them mean that warranties will likely become an essential part of the purchasing process. This is particularly true for high-mileage EVs that are out of their manufacturer’s warranty but still have years of use left.
With close to 1.5 million EVs on UK roads by the end of 2025, the need for reliable and affordable maintenance solutions will only grow. There are clearly a number of competitively priced chargers and the AA/RAC has you covered for recovery, which means that Warrantywise’s move to offer EV-specific coverage feels like a timely response to this emerging market, positioning the company as a key player in the future of the UK’s automotive sector.
It's worth researching options for warranty when buying a second hand EV. This is something that you might be able to negotiate with a main dealer, if the EV you are buying is one of theirs. If not, then options from Warrantywise and other providers could be useful.
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