Using Affinity Schemes to Protect Residual Value and Stabilise the Used Car Market

Residual values are the backbone of automotive profitability. For manufacturers, strong used car performance underpins leasing rates, fleet competitiveness, and the overall brand proposition. Yet in today’s market, residuals are under real pressure. Economic headwinds, rapid electrification, and the influx of discounted EVs have created volatility that can erode confidence among retailers, fleets, and consumers alike.

The challenge is particularly acute in the EV sector. Over the past 18 months, discounting in the UK new car market has exceeded £6.5 billion, as manufacturers fought to maintain sales momentum and comply with the Zero Emission Vehicle (ZEV) mandate. While discounts help shift stock in the short term, they also risk undermining future used values, creating a vicious circle of depreciation and weaker customer confidence.

Affinity schemes provide manufacturers with a powerful lever to help break that cycle. By structuring carefully managed programmes through trusted partners, OEMs can place vehicles into the market in a way that supports volume objectives while protecting brand equity. These programmes also create a clear upgrade and remarketing pathway. Vehicles placed through affinity schemes can be channelled back at the end of term into controlled remarketing pipelines, feeding manufacturer-approved used car programmes and helping to stabilise values. This closed-loop approach ensures manufacturers retain visibility and influence over vehicles throughout their lifecycle, rather than losing them into the open market. At the same time, affinity schemes help strengthen relationships with current and future fleet customers by aligning brand activity with employer and member organisations.

Unlike traditional retail discounting, affinity schemes target specific employee or membership groups, delivering incremental sales of up to 10% within engaged audiences and achieving higher conversion rates than other channels. Manufacturers also retain full control—deciding which partners to approach, which models to feature, what level of discount to provide, and which vehicles to prioritise, whether that’s accelerating EV uptake or managing older stock. Compared with salary sacrifice or company car schemes, affinity offers greater flexibility, with a wider range of models and fuel types available.

For consumers, the benefits are equally clear. Employees or members gain access to a brand-new car at preferential terms, with the reassurance of manufacturer backing. When they come to upgrade, they are more likely to remain within the brand ecosystem, either through another affinity deal or by moving into a manufacturer-approved used car. That loyalty effect strengthens both new and used sales and supports residual values over the long term.

The growing strength of the used EV market underlines the importance of such strategies. In 2024, UK used EV sales rose by 57.4% to 188,382 units, driven by improving affordability and wider choice. Demand is there—but buyers need confidence in the quality and value retention of the cars they choose. By aligning affinity sales with controlled remarketing, manufacturers can provide that reassurance, ensuring EVs re-enter the market with strong provenance and competitive pricing.

Affinity schemes, then, are not just a sales channel. They are a strategic tool for lifecycle management—delivering volume today while protecting the value of vehicles tomorrow.

At VPS, we specialise in designing, managing, and operating affinity programmes that deliver both commercial impact and long-term brand protection. Every scheme is supported by a fully branded platform, a dynamic configurator with CRM integration, a dealer portal for easy enquiry management, robust authorisation controls, and comprehensive marketing and partner engagement. In a volatile market, the message is clear: affinity schemes are more than a discount mechanism—they are a vital way to stabilise used values, strengthen customer loyalty, and futureproof automotive profitability.