Electric Vehicle Residual Values in Europe: On the Road to Greater Stability?
Electric vehicles (EV) represent a growing share of European auto ABS and related financing structures. Residual value dynamics are particularly relevant for lease-backed and Personal Contract Purchase (PCP) transactions, where vehicle disposition values influence recoveries and loss performance. The EV segment attracted heightened attention following the correction in residual values that occurred after supply-constrained price increases during the COVID-19 pandemic.
More recent data indicate that the pace of value decline has slowed. This KBRA report examines recent EV residual value performance, EV adoption trends across key European markets, and the implications for auto ABS transactions with residual value exposure, in the context of evolving regulatory signals in Europe.
Key Takeaways
EV residual value trends have become more stable relative to earlier phases of adjustment, as reflected in KBRA’s index. Value declines for 36-month-old used EVs in the European Union (EU)…
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