Electric vehicle residual values: Understanding and managing the risks of EV asset evolution

The rise of electric vehicles is transforming both the automotive and financial landscapes. However, this shift introduces new risks and complexities that directly impact vehicle leasing, financing, and insurance portfolios. Unlike traditional vehicles, EVs present unique challenges, including rapidly advancing technology, fluctuating battery performance, and unpredictable future demand.

The Corporate Value Associates team shares insights into the future of electric vehicles and emphasizes the importance of gaining a clear understanding of EV residual value risks. They highlight the need to analyze the evolution of both new and used EV car prices and manage EV assets in ways that mitigate price fluctuations.