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DEALERS could be face an annual fuel bill of nearly £3 million by the end of this year for not providing like-for-like EV courtesy cars or replacement vehicles following road collisions.

Analysis by accident aftercare specialist AX shows that as demand for EVs grows – reaching 7% market share in the first two months of 2021 – dealers are facing growing fuel bills for petrol and diesel vehicles loaned to customers.

As well as the cost of fuel, the problem is compounded by electric car owners who incur congestion and emissions zone charges when driving a temporary petrol or diesel car.

While many drivers will be unhappy at having to step back into a more polluting vehicle – with AX’s research showing environmental and fuel-saving benefits are the leading reasons for drivers adopting EVs – many will refuse to cover fuel and other charges.

The estimated multi-million pound (£2.67 million) annual fuel bill could be amplified significantly in 2022 and beyond as the UK embraces greener alternatives to the internal combustion engine.

In fact, the research follows a recent AX study which found that over 55% of motorists are considering buying an EV, highlighting growing interest in going electric.

Catering for this increasing market, AX Electric provides like-for-like EV replacement vehicles to customers of dealers and insurers in the event of an accident.

Director of Sales and Operations for AX, Scott Hamilton-Cooper said: “With EV’s becoming more affordable and manufacturers launching more than 30 EV models throughout 2021, the EV market is about to grow exponentially.

“With the transition from ICE to EV models comes the incentive of no longer having to pay for fuel. Those who live, or commute, into London or other charging zones save around £15, and then there’s the psychological green feelgood factor, too.

“I have spoken to several dealers recently and I have noticed this costs issue being raised more frequently. Add in the customer service element of keeping customers in an EV, and the proposition increasingly feels like an essential rather than a ‘nice to have’ benefit.”

AX’s recent survey involving over 2,200 motorists revealed that currently only one third of drivers would accept an equivalent petrol or diesel model while their car is being repaired or serviced.

The National Franchised Dealer Association (NFDA) said the issue has not been brought up by any member although part of the NFDA’s Electric Vehicle Approved (EVA) accreditation scheme standards is that all EV customers must be provided with an EV courtesy vehicle.

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