J.D. Power Study: Affordable Electric Vehicles to Flood Used Market in 2028
A recent J.D. Power study suggests that the next two years will see affordable EVs begin to infiltrate the used car market, reports Inside EVs.
2023 saw lease volumes for new EVs rise by 355%, according to J.D. Power’s October 2024 E-Vision Intelligence Report. In September 2024, it rose by another 88%.
As such, by the time 2026 rolls around, there will be a whopping 230% increase in returning lease volumes, with a 2% decrease in returning EV leases expected for 2025.
However, for most people, it may be cheaper to simply purchase a new EV than for consumers to keep the vehicle they leased in ‘23 or ‘24.
With the buyout price for most electric compact SUVs being over the $25,000 threshold for the used EV tax credit, it would cost $477 to buy out a lease, compared with $457 for a new EV in the same category. This can be contributed to the steady decline in EV prices that’s been seen over the past two years.
In this event, 2028 may likely see an influx of EVs enter the used car market from drivers who chose a new car over renewing their contract.
J.D. Power’s study follows a recent Goldman Sachs report which claimed EVs will see their prices tumble in the next two years due to decreasing battery prices.
