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In 2026, the market for secondhand electric vehicles (EVs) is expected to see a significant increase, with a projected 230% growth, as 215,000 leased cars are set to come off lease, according to data from JD Power.
If you’ve been interested in owning an electric car but found the prices too high, there’s good news ahead. A large number of EV leases are scheduled to expire in 2026, which is likely to create an oversupply in the market.
The revised IRS clean vehicle tax credit is playing a key role in this situation. This credit was updated under the Inflation Reduction Act, and while new, stricter battery sourcing rules and the requirement for final assembly in North America have reduced the number of eligible new EVs, there’s a beneficial loophole for leased vehicles. Because leased EVs are classified as commercial sales, they remain eligible for the $7,500 incentive, which can now be applied directly to the sale or leasing price of the vehicle.
In 2023, 46% of all franchise (excluding Tesla, Rivian, Vinfast, or Lucid) EV sales were leases. JD Power has observed a similar trend during the first three quarters of 2024. When including Tesla, roughly 30% of new EV sales this year were leases. In contrast, leasing of gasoline-powered vehicles has declined since the onset of the pandemic.
As a result, a shortage of used internal combustion engine (ICE) vehicles can be anticipated in 2025 and 2026. JD Power also indicates that while the number of used EVs may decrease slightly next year, by about 2%, there will be a substantial rise in 2026, as many leased EVs return to the market.
Additionally, JD Power reports positive news regarding new EV prices—they are decreasing. The average price for a new electric compact SUV, after accounting for tax credits and manufacturer incentives, is now $35,900—$12,700 less than the average price for the same vehicle class in 2022.
#auto #ev
If you’ve been interested in owning an electric car but found the prices too high, there’s good news ahead. A large number of EV leases are scheduled to expire in 2026, which is likely to create an oversupply in the market.
The revised IRS clean vehicle tax credit is playing a key role in this situation. This credit was updated under the Inflation Reduction Act, and while new, stricter battery sourcing rules and the requirement for final assembly in North America have reduced the number of eligible new EVs, there’s a beneficial loophole for leased vehicles. Because leased EVs are classified as commercial sales, they remain eligible for the $7,500 incentive, which can now be applied directly to the sale or leasing price of the vehicle.
In 2023, 46% of all franchise (excluding Tesla, Rivian, Vinfast, or Lucid) EV sales were leases. JD Power has observed a similar trend during the first three quarters of 2024. When including Tesla, roughly 30% of new EV sales this year were leases. In contrast, leasing of gasoline-powered vehicles has declined since the onset of the pandemic.
As a result, a shortage of used internal combustion engine (ICE) vehicles can be anticipated in 2025 and 2026. JD Power also indicates that while the number of used EVs may decrease slightly next year, by about 2%, there will be a substantial rise in 2026, as many leased EVs return to the market.
Additionally, JD Power reports positive news regarding new EV prices—they are decreasing. The average price for a new electric compact SUV, after accounting for tax credits and manufacturer incentives, is now $35,900—$12,700 less than the average price for the same vehicle class in 2022.
#auto #ev
In 2026, the market for secondhand electric vehicles (EVs) is expected to see a significant increase, with a projected 230% growth, as 215,000 leased cars are set to come off lease, according to data from JD Power.
If you’ve been interested in owning an electric car but found the prices too high, there’s good news ahead. A large number of EV leases are scheduled to expire in 2026, which is likely to create an oversupply in the market.
The revised IRS clean vehicle tax credit is playing a key role in this situation. This credit was updated under the Inflation Reduction Act, and while new, stricter battery sourcing rules and the requirement for final assembly in North America have reduced the number of eligible new EVs, there’s a beneficial loophole for leased vehicles. Because leased EVs are classified as commercial sales, they remain eligible for the $7,500 incentive, which can now be applied directly to the sale or leasing price of the vehicle.
In 2023, 46% of all franchise (excluding Tesla, Rivian, Vinfast, or Lucid) EV sales were leases. JD Power has observed a similar trend during the first three quarters of 2024. When including Tesla, roughly 30% of new EV sales this year were leases. In contrast, leasing of gasoline-powered vehicles has declined since the onset of the pandemic.
As a result, a shortage of used internal combustion engine (ICE) vehicles can be anticipated in 2025 and 2026. JD Power also indicates that while the number of used EVs may decrease slightly next year, by about 2%, there will be a substantial rise in 2026, as many leased EVs return to the market.
Additionally, JD Power reports positive news regarding new EV prices—they are decreasing. The average price for a new electric compact SUV, after accounting for tax credits and manufacturer incentives, is now $35,900—$12,700 less than the average price for the same vehicle class in 2022.
#auto #ev
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