Source: NYT > Business
As hundreds of thousands of early EV leases expire through 2027—concentrated in markets like California and New York where lease penetration was highest during the 2018-2022 adoption surge—used dealers will face an influx of relatively young, warranty-backed vehicles that undercut new EV pricing by 30-40 percent. Used EVs at that price point could make ownership feasible for middle-income buyers, but only if automakers accept lower residual values. That math threatens the lease economics manufacturers relied on during the initial push. Automakers and dealers will need to rethink pricing strategies and captive finance structures as used EVs compete directly with both used gas cars and new EV purchases.