If electric vehicles are holding their value better than many industry estimates suggest, drivers could be paying more than necessary to lease or finance them.
That is the central finding of a new European analysis from advocacy group Transport & Environment, which pushes back on one of the most common claims used against faster EV adoption.
Here's what to know
As CleanTechnica reported, T&E said electric cars are holding their value better than leasing-industry estimates suggest, a difference that could affect monthly payments, resale expectations, and fleet-buying decisions.
In T&E's view, five missing inputs materially change the picture painted by 2025 Autovista used-car transactions in Germany, France, Italy, and Spain. Once subsidies, acquisition taxes, inflation, fleet composition, and lower new-EV prices are included, the 12.9-percentage-point depreciation gap between EVs and combustion vehicles narrows to 2.6 — an 80% reduction.
Because lease pricing depends heavily on expected resale values, overstating EV depreciation can push monthly costs higher than necessary.
"The industry is painting an overly simplistic picture of EV depreciation to justify opposing EU fleet electrification targets," Stef Cornelis, director of the Electric Fleets and Freight programs at T&E, said.
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"In reality, binding targets create market predictability, allowing leasing companies to manage depreciation with greater certainty. Furthermore, targets will incentivise Member States with outdated car tax systems to adopt progressive reforms, which will ultimately reduce the real depreciation gap between powertrains over time."
More background
One issue, T&E said, is that the comparison often starts from prices that do not reflect what buyers actually pay. Subsidies lower the upfront cost of EVs, while acquisition taxes raise the effective purchase price of gas-powered cars, which can distort a simple depreciation comparison.
T&E said the analysis also needs to account for inflation and for differences in the vehicles being compared. The gas-powered cars in these datasets are generally older and have higher mileage, and declines in new-EV prices have also weighed on used EV values — a drag the group expects to ease if new-car prices stabilize.
So EV leases can look less competitive than they really are when the assumptions behind them are too pessimistic. T&E also found that swings in EV depreciation matched those for gas-powered cars across both 2025 semesters, challenging the idea that used EV prices are uniquely unstable.
T&E also said there are signs demand is picking up.
What's being done?
T&E said leasing firms should respond to rising interest in used EVs with longer lease terms, while carmakers can reduce buyer uncertainty by standardizing battery health certificates and approved-used programs.
That recommendation aligns with industry data cited in the analysis. BCA, Europe's largest car remarketer, found that certified EVs brought about 1.4% more at resale and moved 2.7 days faster on average. Leasing giant Arval has distributed upwards of 30,000 battery health certificates across the U.K. and EU.
T&E is also urging EU lawmakers to support the upcoming Corporate Clean Vehicles Regulation, saying fleet-electrification targets for large companies would help make the used-EV market more predictable.
Cornelis added: "With high fuel prices hitting EU drivers hard, rapid electrification is the only real solution. Rather than subsidising fossil fuels, we must activate existing policy levers to support private drivers and businesses in making the switch. This will shield drivers from pain at the pump and truly back our automotive industry."
Where can I learn more?
Lease pricing is only one part of the EV cost equation. These articles look at some of the other driving factors.
• For drivers weighing monthly costs, leasing can lower upfront barriers to getting into an EV.
• Current EV owners remain committed to buying electric again, reinforcing demand for used models.
• Across ownership cycles, owning an EV can cost less than driving a gas car.
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