Automakers are apparently worried about losing billions of dollars thanks to the steep deprecation curve on all-electric vehicles. The industry expected them to be worth significantly more and are reportedly growing extremely concerned as demand remains low while leased EVs come back to dealerships.At the core of this issue is everyone’s inability to correctly predict the future. Automakers and government regulators pushed aggressively for all-electric vehicles to supplant combustion models, seeing limited success in the process.Finance departments likewise leased electric vehicles at higher rates while the EV tax credits were still in effect. Federal funding incentivized more people to purchase the vehicle while also giving automakers some wiggle room on MSRPs — which is honestly pretty scummy.However, the budgetary chickens have come home to roost. According to Automotive News, those higher two-to-three-year leases normalized in 2022 have been coming back to dealer …
Go to Source
Author: Matt Posky
