By ROB HULL, MOTORING EDITOR
The average household is being 'shut out' of electric car ownership in what has been dubbed a 'wealth divide' in Britain, according to a report from a leading new and used car marketplace.
AutoTrader found in a new study that less than half (48 per cent) of households earning less than £40,000 per annum are considering an EV as their next car, with vehicle price typically the biggest hurdle.
In contrast, those earning over £40,000 said they are far more likely to purchase an electric model, with 84 per cent earmarking an EV as their next car.
According to the Office for National Statistics, the median household income in 2024 was £36,663. This firmly pitches the average Briton in the group that's significantly less likely to make the switch to an EV.
And the survey, which polled 2,600 drivers across the country, found that appetite for EVs is not significantly influenced by households having access to driveways, as other reports have previously suggested.
While official government data shows that more than four in five existing EV owners in Britain have driveways where the can charge their cars, the AutoTrader report found that 70 per cent of sub-£40,000 households do have access to off-street parking facilities.
With those with driveways having capacity to charge their EVs via their domestic energy tariffs - which can be four times cheaper than having to charge using public devices - the report said charging cost is 'not the clear-cut indicator of electric consideration - or likelihood to buy - as previously thought'.
Fewer than half of households with incomes of less than £40,000 are considering buying an electric car. And that's despite 70% of them having driveways where they can charge an EV and benefit from far cheaper running costs, AutoTrader said
Despite those with driveways being likely to save around £1,500 a year on running costs compared to a conventional petrol car, AutoTrader says many households earning less than £40,000 will never even look into the potential savings due to a number of other factors - primarily vehicle price.
Nearly two-fifths of lower-income households buy cars priced at £5,000 or less, but only 1 per cent of used EVs are in that price bracket, according to the online marketplace's own data.
Lower-income families are also far less likely to know someone who drives an EV and are therefore less likely to hear positive feedback about ownership, the company added.
The report warned that millions of drivers will be excluded from the switch to EVs unless there is targeted action on affordability at both government and industry level.
Ian Plummer, Autotrader's chief customer officer, said: 'We're at a pivotal moment for the UK's EV transition - but there is still a lingering wealth divide.
'This new data also busts the myth that those who can charge at home will definitely switch - the driveway divide is no longer so clear cut.
'If lower income households can't access affordable vehicles, we risk creating a two-tier system where the benefits of cleaner, cheaper motoring accrue to those already better off.
'The path forward is clear: more choice at lower price points, greater transparency on battery health metrics, and practical charging solutions for people without driveways.
'Do that, and we unlock EVs for everyone - not just the few.'
According to the ONS, the median household income in 2024 was £36,663. This firmly pitches the average Briton in the group that's significantly less likely to make the switch to an EV
While the Government last summer launched the Electric Car Grant scheme, which offers to trim the price of a new qualifying EV by up to £3,750, AutoTrader says most electric models are still well out of financial reach of most low-income households.
As such, it called on ministers to consider a targeted used EV grant scheme as an incentive for lower earners to make the transition.
But it warned that recent government action on electric cars is likely to increase the stranglehold on demand among those with the tightest purse strings.
The report follows a Budget which 'threatens to make EVs more expensive' in the future, with proposals for a new pay-per-mile road tax from 2028 adding to running costs as Labour attempts to tackle the reduced fuel duty income.
AutoTrader found that nearly half of all drivers polled (47 per cent) said they were less likely to go electric following the Budget, compared to one third (34 per cent) who said road pricing for EVs hadn't changed their aspirations to own one.
A Department for Transport spokesperson responded: 'The Government is boosting sales and making EVs more accessible at the lower end of the market, by saving drivers up to £3,750 off a new car, with almost 50,000 people benefitting already. This also driving down prices for used EVs, with almost half now available for under £20,000.
'We’ve also announced an additional £600million this year alone to support the rollout of more charging devices and are supporting residents without driveways to install home chargers, enabling them to power up for as little as 2p per mile.'
