Tax Credit Picture Could Throw a Wrench in Used Market
Breaks to bring a deluge of returning leases, but their uncertain future could imbalance supply and demand.

Returning EV leases are expected to jump in 2026 by 230%, J.D. Power forecasts.
Pixabay/Joenomias
Federal tax credits for electric-vehicle leases that qualified many models not eligible for the breaks if purchased have spawned a large volume of EVs set to pump up the used-vehicle market.
J.D. Power research indicates leases of new EVs skyrocketed 355% last year in a trend that continued this year, albeit at a much slower pace, up 88% through September. The spike has been even more pronounced for franchise sales alone, up 438% last year, excluding Tesla sales, and up 109% this year through September.
That’s in sharp contrast to leases of gas-powered vehicles, which are still down from levels seen before the pandemic and therefore poised to contribute to used-vehicle shortages next year and in 2026, J.D. Power said. In fact, it said gas-powered and EV lease returns combined are down 37% from 2020.
The unusual EV lease activity, though, should at least help shore up overall used availability. Returning EV leases are expected to jump in 2026 by 230%, J.D. Power forecasts.
Complicating the used supply picture, though, is the question of whether the federal EV credits will continue under the incoming Trump administration, since Trump has said he will eliminate EV adoption and production incentives. It’s also unclear if automakers will continue incentives.
Those questions, combined with consumer concern about long-term EV battery life, could bring new instability to the used market, J.D. Power said, complicating “the traditional balance of supply and demand.”
Originally posted on F&I and Showroom
More Industry

Ownership Priorities are Shifting
A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.
Read More →
Pump Price Jump Calculated
ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.
Read More →
Black Book: Weekly Market Update
Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.
Read More →
Arkansas Auto Group Acquires First Indiana Rooftop
Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.
Read More →
Stellantis to Dive Into U.S. Lending
The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.
Read More →
New-Vehicle Prices Rise
With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.
Read More →
Black Book: Weekly Market Update
Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.
Read More →
Black Book: Weekly Market Update
Conversion rates were flat last week at 63%, Black Book analysts calculated, as low-mileage and almost-near units outpaced the overall market.
Read More →
EU Auto Association Urges Action
Trade relations between the European Union and the U.S. are at risk, causing the European Automobile Manufacturers Association to push lawmakers to make a decision.
Read More →
Driving into the Super CFC Era
Understanding the risks and benefits of retail accounting and Super CFCs can help you better present options to your dealer partners.
Read More →