Used‑EV wave hits used‑car market
A big influx of off‑lease electric vehicles is set to flood the used‑car market, easing some supply pain but heightening residual‑value and depreciation risk for auto lenders and floorplan financiers. Lenders will need faster valuation models and portfolio monitoring to avoid surprise losses as EV supply and pricing normalize. (slashgear.com)
J.D. Power projects returning EV lease volumes will surge ~230% in 2026 to roughly 215,000 off‑lease EVs, marking a concentrated return of 2022–23 model-year vehicles. (jdpower.com) Industry trackers show off‑lease volumes rising from ~123,000 in 2025 to as many as ~330,000 in 2026, with estimates that off‑lease EVs could hit ~650,000 units by 2027 as the pipeline built in 2022–23 matures. (news.dealershipguy.com) Wholesale and retail pricing is already shifting: Cox Automotive data cited a ~9% year‑over‑year drop in average used‑EV listing price to about $36,976 and reported nearly one‑in‑three used EV listings below $25,000. (news.dealershipguy.com) Lender exposure is rising as EV lease penetration climbed in the dealer and finance channels—Experian reported EVs accounted for 11.36% of new‑vehicle financing in Q3 2025 while leasing share of EVs exceeded 50% in the same period—raising concentration and residual‑value monitoring needs for auto and captive lenders. (experianplc.com) Floorplan providers and auction operators are adapting: Manheim/Cox Automotive is framing 2026 as the “largest wave” of used EVs and has scaled inspection and inventory tools to separate EV metrics from ICE vehicles, while NextGear/other floorplan partners are promoting integrated inventory and risk solutions for dealers. (coxautoinc.com) New data and battery‑health services are emerging to support valuation speed: Recurrent’s used‑EV market reports and battery diagnostics now appear in dealer/auction workflows to quantify battery warranty and remaining range at remarketing, a key input for residual models. (recurrentauto.com) Solifi has augmented its platform footprint targeted at these stress points—acquiring DataScan to expand wholesale finance and inventory‑risk tooling and launching Solifi Document Intelligence with claims of up to a 70% reduction in document verification time to accelerate originations and collateral onboarding. (businesswire.com) Client migrations demonstrate operational gains: Kawasaki Motors Finance moved U.S. wholesale operations onto Solifi to improve dealer self‑service and portfolio visibility, Access Capital upgraded to Solifi ABL to consolidate ledgers and borrower management, and Allied Credit selected Solifi’s end‑to‑end automotive lease solution for lease origination scale. (magazine.factoring.org)
