Cheap, pre-owned EVs are about to flood the market. Is that a good thing?

Published On Nov 12, 2024, 12:20 PM

The influx of cheap, pre-owned electric vehicles (EVs) in the upcoming years is projected to significantly impact the market. J.D. Power's recent report anticipates a surge in returning leased EVs, which will increase from about 18,900 in 2021 to a staggering 215,000 by 2026. This increase will lead to higher supply and potentially lower prices for used EVs, making them more appealing to consumers. However, this may also pose challenges for new EV sales as consumers pivot to cheaper pre-owned options. Additionally, government tax incentives for EV purchases and leases could further influence market trends, depending on potential policy changes under the new administration. Overall, while the increased availability of affordable EVs could stimulate consumer interest, it may also create stiff competition for new EV models.