Pre-Registrations May Help Hit ZEV Mandates — But Affinity Can Protect OEMs from the Fallout

Stephen Lambert
Oct 7
4 min read

The UK’s Zero Emission Vehicle (ZEV) mandate is reshaping the new car market at speed. With targets tightening each year, OEMs are under growing pressure to ensure a rising share of their sales are electric. But as Fleet News recently reported, many brands are expected to rely heavily on pre-registrations to hit their 2025 and 2026 EV quotas — a tactic that may achieve compliance but brings real risks for margins, residual values, and brand equity.

The Pre-Registration Dilemma

According to Fleet News, industry analysts predict that a wave of EV pre-registrations will be used in the months ahead as manufacturers look to safeguard compliance with the government’s mandate. While this helps manufacturers hit the numbers, the practice effectively pushes large volumes of unsold cars into the market.

The consequences are already visible:

Residual value pressure: As Rupert Pontin, Head of Insight and Communications at Brego, told Fleet News, such moves will “put pressure on late-plate values.” That undermines customer confidence and erodes profitability for both OEMs and their dealer partners.
Discount dependency: Pre-registered vehicles often enter the retail market with heavy discounts attached, creating a “fire-sale” perception that can weaken brand strength.
Customer churn: Fleet News also highlights that brand loyalty in the EV market is fragile. Buyers who switch to a used EV solely based on price are less likely to remain loyal in the long term.

Pre-registrations may ease short-term regulatory pressure, but they create volatility that can destabilise both the new and used markets. For OEMs, the challenge is to meet ZEV targets without undermining their future sales mix.

Where Affinity Schemes Fit In

This is where affinity schemes provide a smarter, more controlled alternative. Instead of flooding the open market with discounted late-plate stock, OEMs can use affinity programmes to channel vehicles into carefully managed networks, such as employees of fleet customers, public sector workers and dealer staff — at preferential terms.

Affinity schemes offer several advantages over uncontrolled pre-registration tactics:

Controlled volume: OEMs decide who is eligible, which models are offered, and at what discount, ensuring placement supports strategy rather than weakens it.
Residual value protection: Vehicles are often returned after around three years, creating a predictable supply of one-owner, full-history cars for approved used programmes.
Incremental sales: Properly structured, affinity programmes can deliver up to 10% incremental sales within targeted groups, often with higher conversion rates than traditional retail offers.
EV advocacy: By prioritising electric models in staff schemes, OEMs can turn employees and dealer staff into authentic EV advocates — living with the product every day and passing that experience on to customers.

Benefits for Dealer Networks

For dealer groups, affinity schemes provide multiple layers of value:

Staff retention and engagement: Offering all employees — from sales executives to technicians and admin staff — access to new vehicles creates pride, loyalty, and a tangible benefit in a competitive employment market.
Used car pipeline: Vehicles often re-enter the network after three years and 20,000–30,000 miles, perfectly positioned for retail customers seeking one-owner cars with full service history.
Aftersales uplift: All servicing, maintenance, and preparation work stays within the dealer workshop, boosting profitability.

This ensures that pre-registration volumes don’t become a burden on dealers but instead translate into a structured, profitable cycle of new and used sales.

Why OEMs Should Act Now

Fleet News is clear: pre-registrations will play a significant role in helping OEMs meet the ZEV mandate in the near term. But without careful channel management, this practice risks long-term damage to brand reputation, residuals, and profitability.

Affinity programmes are the solution. By integrating affinity into their sales strategy, OEMs can:

Meet ZEV targets while minimising reliance on uncontrolled discounting.
Create a steady flow of desirable, high-quality used cars for their networks.
Strengthen loyalty and advocacy across dealer staff and partner groups.
Align sales with broader strategic goals, such as accelerating EV uptake.

Why VPS?

At VPS, we specialise in designing and operating affinity programmes that deliver for OEMs and their dealer networks. Every scheme we run includes:

A fully branded platform for scheme visibility and access.
Dynamic configurators integrated into dealer CRM systems.
Eligibility and authorisation controls to ensure compliance.
A dealer portal for smooth enquiry management.
Full dealer and customer support.
End-to-end administration, removing the operational burden from OEMs and dealers.
Marketing and engagement campaigns to maximise uptake.

We are already helping leading OEMs deploy affinity strategies that balance incremental sales with brand protection.

The Takeaway

Pre-registrations may solve a regulatory problem in the short term, but they also create volatility in the new and used markets that risks undermining confidence and profitability. As Fleet News highlights, the practice will become more common — but it doesn’t have to damage the industry.

By adopting affinity schemes as a structured, compliant channel, OEMs can absorb pressure, protect brand equity, and turn the challenge of the ZEV mandate into an opportunity for growth.