A flood of used EVs is coming

[RLXXI]

If someone leased it, it would be silly to keep it.

I believe that to be subjective. In my case, I wanted an extended test drive before dropping that much cash on it. The joke is on me though as after the 2nd day I knew I wasn't going to let it go back lol.

I would have rented one for a weekend if they had been available. So unless something fandamntastical happens between now and 2028, she's found her forever home.

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[MountainAlive]

I’m curious what the lease buy out prices are for folks who have a 2 or 3 year lease ending soon. I have to imagine it’s probably about $10k higher than what a used Lightning of the same trim and mileage would go for? Are the buyout prices negotiable when you go to turn it in? I’ve not leased a vehicle before.

 

[PNW-Steve]

Are the buyout prices negotiable when you go to turn it in?

The purchase price at lease end is not negotiable. The manufacturer sets a residual percentage of MSRP based on the lease term and miles per year. For example, I believe the current residual for a 2025 Lariat for 36 months with 10,500 miles per year is currently 52%. So the residual value (purchase price at the end of the lease) would be 52% of the MSRP for the given vehicle.

 

[meow]

Unfortunately, the impending oil shockwave could screw us all. I hope the EV flood depresses both new and used prices, but with ~ 2 weeks before this really starts to affect the US as the gas pumps, conceivably hitting $7-8/gal in June could be pushing a lot to consider switching.

Family members have recently been asking to test drive my Lightning because they’re not sure they’ll be able to afford to continue filling the tank of their dino juice truck…

 

[hturnerfamily]

I'm not sure many of us buy into the "a flood of EVs is coming" sentiment, or concern, or whatever that means... as...

- a 'flood' is a sudden release of water generally in an area that is not designed to contain it, resulting in a hazard or damages. I'm not sure what this has to do with EVs. EVs are cars and trucks and vehicles just like any with any otherpower train design, whether gas, hybrid gas/electric, diesel, or all electric/battery powered. Why would there be any more or higher percentage of EVs in the used market versus any other type of vehicle?

- manufacturers of all sorts change their minds, marketing, and products all the time... those choosing to change their focus, or product design of 'current' products does not negate the value of the product already purchased, as long as it works as intended, otherwise. Yes, the old adage of the rule of 72 might apply to computer chips and processing speed, but, even then, it didn't negate the usability of those computers already in the marketplace. We might all well get the FOMO disease, which is certainly favored to the manufacturers like INTEL and APPLE, but it doesn't mean the IBM PC with the good ol' 8088 chip didn't still meet the needs of the software it was running, or that the Apple iPhone 12 still doesn't 'work', as intended. We just like to upgrade.

- EVs work. Mine works. Yours works. Why would FORD or anyone else deciding to change marketing, direction, design, and powertrain options change that? It doesn't. We just have a fear that it might... I still like my '66 Ford Mustang... it still works. It's old. They don't make that 'version' anymore. It certainly hasn't lost favor, either.

- any 'flood' of vehicles, whether EVs or not, will likely have nothing to do with electric powertrains.
Those of us with 'used' EVs are also not likely to 'go back' to gas powertrains, no matter what the manufacturers do... or don't do.


Enjoy!

 

[Athrun88]

There's always a number of off-lease vehicles coming back to dealerships, them being EVs aren't going to affect much in the grand scheme of things IMO. EV leaseholders will most likely go into another EV lease and the dealership will turn around and either sell/auction the older model. Given how fuel prices are at the moment, I'm willing to bet that these dealerships will mark up the off-lease models based on 'supply and demand' forces (while offsetting their losses) as more people look to EVs to offset the higher fuel costs. So while there may be more EVs coming off lease, I don't think these dealerships will be hurt any more than an ICE/Hybrid drivetrain coming back in.

 

[Robocop]

Well I got my first EV after the original owner turned it in 'early' ahead of the three year term and with silly-low mileage, except the dealer depreciated the vehicle heavily as if it had spent the full three years on the road and had covered the maximum mileage allowance under the lease.

I got a full CPO warrantied car for an amazing price that was very lightly used in reality. I will never know why they depreciate EVs at the same rate as conventional cars, or even at the rate of high-end luxury vehicles, but I love it as a consumer because there are amazing deals to be had if you are prepared to be patient. I managed something similar with some dumb luck when I acquired my Lightning last year and during that process I learned why January is the best time of year to pull this off.

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