Driving the news: A flood of used electric vehicles is gearing up to hit the market as nearly 1 million EVs leased since 2022 start returning to dealerships.
For context: The surge stems from the "leasing loophole" in the Inflation Reduction Act, which lets lenders claim $7,500 tax credits on leased EVs and pass savings to consumers.
According to Cox Automotive analysis of Experian data, EV lease rates jumped from 15% in 2022 to 67% by March 2025, far above the typical 25% industry rate.
Recurrent Auto projects 123,000 leased EVs returning this year, jumping to 329,000 in 2026 and 650,000 in 2027.
Why it matters: Even though all EV tax credits have been repealed and will end Sept. 30, those lease returns will help feed the used market for years to come.
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