Understanding the ZEV mandate: what it means for used car dealers
And while you may have heard of the Zero-emission Electric Vehicle mandate (ZEV), it’s worth understanding what’s really changing – and how it impacts used car dealers today.
In this guide, we’ll cover what the UK ZEV mandate is, how it impacts the used car market, and what it means for your dealership.
All data correct as of June 2026
What is the ZEV mandate?
The ZEV mandate is a UK government policy that requires manufacturers to sell more zero-emission vehicles each year to support the shift to fully electric sales by 2035. This means manufacturers must increase the number of EVs they register year on year. These targets are based on new car registrations; not how many cars dealers sell.
How does the ZEV mandate work?
The ZEV mandate works by setting yearly electric vehicle sales targets that manufacturers must meet. These targets increase annually, meaning more EV vehicles will naturally filter into the market.
To manage this, dealers will have to start feeling confident with moving these EVs off their forecourt and into customer’s hands.
Why the ZEV mandate matters right now
The mandate isn’t something that’s on the horizon – it’s happening now, and manufacturers are already having to meet these rising targets.
For dealers, the impact of the mandate won’t be felt overnight. But with EVs turning from new to used in roughly 2 – 4 years, having to anticipate for EV stock is becoming more unavoidable. For now, the ZEV mandate means time for used car dealers to prepare, but not time to ignore it.
Understanding how the ZEV mandate impacts used retailers now means dealers can start building their EV confidence without the same pressure many manufacturers are facing. Whether it’s getting familiar with the EV market or understanding what customers are asking, dealers will want to avoid being caught on the back foot as electric vehicles become more established.
Instead of waiting until electric vehicles feel unavoidable, using this time to gradually build their EV knowledge will help retailers stay confident and informed as manufacturers get closer to their 100% zero-emission target.
Customer confidence is being supported
We’ve seen a 25% increase in EV finance applications so far (2025 vs. 2026). But despite this growing interest, plenty of customers still feel unsure about them.
Customer concerns include:
- High upfront costs
- Lack of confidence around battery health and charging
- Long-term value of the vehicle
However, confidence is improving.
The UK government has launched campaigns to reassure drivers that EVs remain affordable to run, and tackles concerns around future road taxes. This reassurance matters – because confident customers are more likely to view, test-drive and finance a used EV.
As the Department for Transport (DfT) ramps up support in line with growing EV interest, this initiative will only help customers arrive at dealerships ready to discuss EV finance.
What the ZEV mandate means for used car dealers
The ZEV mandate isn’t just about targets – it will directly impact and influence what happens on dealer forecourts over the next few years.
More EVs will enter the used market
With manufacturer targets rising significantly from 2028 onwards, more EVs will filter through to the used car market whether dealers actively seek them out or not. These EVs will have to go somewhere – and that means onto dealer forecourts.
New EVs will quickly become old EVs
Most vehicles move into the used market within 2-4 years. And with more customers opting for older EVs, this will mean an increase in choice and competition in the used vehicle market.
Customers will expect EV options
As more EVs enter the market, customers will expect to see used EVs alongside petrol and diesel vehicles on the forecourt. And even if customers don’t choose one right now, they may still have questions about them – and they may overlook dealers who don’t offer that flexibility and confidence.
EV conversations will become more common
As customers become more confident with EVs, the more they’ll feel prepared to talk about them. Not being able to confidently manage EV conversations may mean missed sales opportunities. For example, customers are already asking questions like:
- Are electric cars cheaper to run?
- Are electric cars worth buying in 2026?
- How long do EV batteries last?
Dealers don’t have to be EV experts, but having a basic understanding will allow you to build trust with your customers, improve conversions, and help you stand out from the competition.
What dealers should focus on now
As electric vehicles become more common in the UK car market, dealers who start learning about stocking and selling them now will find themselves ahead of the curve. This doesn’t mean becoming an EV expert overnight, but there are a few key areas to focus on that can help you today:
- Building a basic understanding of how EVs work
- Learning what customers are asking
- Finding out how customers are shopping for and choosing EVs
- Understanding what finance options are available for EVs
- Introducing EVs gradually into your stock
Focusing on these areas will help EVs feel more manageable, not daunting. Dealers who learn the basics of EVs now will find it easier to:
- Price EVs confidently
- Explain key benefits to customers
- Sell more EVs on finance
Frequently asked questions
Although the ZEV mandate sets direct targets that manufacturers must meet each year, this does impact used car dealers. As these targets are rising year-on-year, more electric vehicles will be entering the market, and these EVs will have to start filtering into dealer stock – whether retailers are actively looking for them or not.
No, dealers are not required to sell electric vehicles. The ZEV mandate applies to manufacturers, not dealers.
However, with more EVs entering the market over the next few years, and with more customers considering electric vehicles, dealers who don’t have EVs as part of their offering may risk being overlooked by customers, leading them to shop for their next vehicle elsewhere.
Having a basic understand of electric vehicles will help dealers with EV conversations, match what customers want, and turn more stock. View our guide on what customers are looking for when it comes to EVs.
One of the reasons electric vehicles are entering the market is because of the ZEV mandate. The mandate means manufacturers must increase the number of EVs they register each year to meet rising targets.