We might start to get some great used electric car deals starting in 2026 as EV lease returns are expected to surge in a big way.

While the EV revolution has been going on for over a decade now, the used EV market is still quite immature because EVs have only been delivered in large volumes for the last few years.

2026. That is going to be the year of the used EV.

J.D. Power is out with a new report that states an expected 230% increase in electric vehicle lease return in 2026:

Lease volumes for new EVs surged 355% throughout 2023 and 88% through September 2024. Franchise-only (excluding Tesla) EV lease volumes were even higher, rising 438% throughout 2023 and 109% through September 2024. As a result, returning EV lease volumes are projected to dip slightly in 2025 before spiking 230% in 2026. This trend runs counter to what’s happening industry-wide where total lease volumes for gas-powered vehicles have been lower than pre-pandemic levels, creating a likely shortage in used-vehicle availability in 2025 and 2026. 

After projections for a roughly flat year in 2025, the report expects a massive increase in 2026 based on current lease data:

The reason for the surge is quite simple. The highly reported “lease loophole” to get access to the tax credit has resulted in a surge of EV leases:

Due in large part to a provision in the federal Clean Vehicle Tax Credit, which allows auto dealers to pass along a $7,500 tax credit to all EV lessees, nearly half (46%) of all franchise EV sales and 21% of total EV sales (including Tesla) in 2023 were leases. That trend continued throughout the first nine months of 2024, with the lease share of total franchise and Tesla EV volume reaching 30%. Meanwhile, lease volumes for gas-powered vehicles have been lower than pre-pandemic levels. Industry-wide, just 2.4 million gas-powered vehicles were leased in 2023. While that represents a 17% increase from 2022, it is still considerably lower than the pre-pandemic average of more than three million leases annually, which will likely create a shortage in used-vehicle availability in 2025 and 2026. 

While some of those leasers are going to keep their vehicles, many are going to give them back and upgrade, resulting in a surge of used EVs available for sale.

Used EV prices have already come down greatly, partly due to Tesla slashing prices in order for demand to keep up against its rapidly growing production capacity between 2020-2023.

Now, these fresh “new” used EVs to hit the market in 2026 are likely going to put a lot of pressure on used EV prices.

Electrek’s Take

I am excited for more mature used car markets even if it means that EV value will drop in 2026.

Most people buy used cars and so far, they have been quite limited in their EV options. It does sound like 2026 will be the year when the used EV market will expand into something more impactful, and lower-income people will be able to get off of gas.

It’s going to be a big step in the EV revolution.

Royal Enfield’s biggest announcement at EICMA 2024 – the Milan Motorcycle Show – was undoubtedly the drop of its new electric motorcycle, the Flying Flea C6 and S6.

“Flying Flea” turned out to be the name of not just the new bike but the entire electric sub-brand launched by Royal Enfield, designed to encompass a range of light to middleweight urban electric motorcycles.

The first two models, the classicly-styled Flying Flea C6 and scrambler-styled Flying Flea S6, set the direction for the brand while positioning the type of rider and the type of ride that Royal Enfield has envisioned for its electric future.

One look at the new bike shows that it fits with Royal Enfield’s design heritage, borrowing several design cues and mixing them with the modern opportunities afforded by electric motorcycle design work freed from the traditional bounds of conventional frames and engines.

At the same time, a nod to history in the design mimics several now vestigial features, including an electric motor case that looks like a crankcase and bodywork that mimics a fuel tank.

We can see the obvious inspiration from the original Royal Enfield Flying Flea motorcycle of the 1940s, famously airdropped into WWII alongside paratroopers to provide lightweight and speedy battlefield mobility. From the girder fork to the vintage-style saddle, it’s a slick-looking ride. But appearances, however eye-catching, can only take Royal Enfield so far. For the new Flying Flea to become a commercial success, it will have to be backed up by the right specs at the right price.

And the team at Royal Enfield has an answer for that too. They just aren’t telling us yet.

While the unveiling was big on pomp and highlighted the brand’s focus on bringing accessibility to the commuter electric motorcycle market, the company isn’t quite ready to spill the details on specifics. Nearly the entirety of the bike’s spec sheet remains shrouded in mystery. The company doesn’t expect the bike to go on sale until Q1 2026, so we’ve got some time to get there.

However, we can still glean a lot from looks alone. The battery itself is rather small, physically, meaning it is unlikely to offer a terribly long range on a single charge. The narrow battery case likely implies a single row of cylindrical battery cells, limiting its total capacity. Perhaps two rows of cells could fit, but it’d be a tight squeeze. Either way you slice it, there’s just not a ton of space in between your knees for batteries. And that’s ok, as long as Royal Enfield has positioned the bike properly for its role. The company has repeatedly referred to the Flying Flea C6’s role as “city+”, meaning it’s designed primarily for urban commuting, with occasional excursions further out and onto faster roads.

This isn’t going to be a long-range highway commuter, but it will likely be sufficient for hopping on local highways for an exit or two. That’s peak commuter bike, right there.

Secondly, the motor isn’t all that large either. Physical size isn’t the only indication of power in an electric motor, but it’s usually a good corollary. This isn’t going to be laying down LiveWire-like 0-60 mph times of 3.0 seconds, which again, isn’t something a commuter bike is meant to do. If I were a betting man, I’d put the battery capacity at between 4-5 kWh and the peak motor power at under 15 kW (20 hp). I imagine the battery will be slightly smaller than most of us would want, but the power level is likely perfectly adequate for commuter-level requirements. With small batteries comes limited peak power, that’s just physics.

To put it simply, the specs are likely to be fine, but not breathtaking. And that’s ok. In fact, it’s what the market needs right now.

We’ve all watched as high-performance electric motorcycle companies have struggled, even gone bankrupt, trying to chase high speed and long range. That pursuit of performance is often a nearly impossible balancing act without seeing the price skyrocket. The current size and expense of batteries simply make it nearly impossible to shoehorn enough of them into a motorcycle-sized package and have something that looks good, let alone remains affordable.

So instead of racing for the top, Royal Enfield has chosen the path less traveled these days: comfortably nestling into the sensible section of the market. With modest power and range figures comes modest pricing, and that’s Royal Enfield’s key to success. The company has long prided itself on building bikes that are accessible. And as many other companies have seen their sales stagnate or shrink, Royal Enfield has continued to grow in the last few years, reaching nearly a million units sold last year alone.

That combination of an eye for design mixed with sensible accessibility hasn’t just kept Royal Enfield afloat; it has helped the company prosper. And it just so happens that that’s exactly what the electric motorcycle market needs right now.

Fortunately – or more likely by design – this comes at a time when Royal Enfield is ready to take the risk. In candid discussions we had throughout the launch, it was underscored multiple times that Royal Enfield isn’t betting the farm on this. The company waited until they thought the time was right, but if the Flying Flea isn’t an immediate commercial success, we were assured that it wouldn’t drag the company down. That doesn’t mean the Royal Enfield team isn’t expecting success, but only that they’re not watching the world go by through rose-colored riding goggles either.

How much will the Flying Flea electric motorcycle cost?

This is the big question. More than “how fast?” and more than “how far?”, people want to know how much the Flying Flea C6 and S6 will cost.

And just like the performance specs, Royal Enfield isn’t ready to tell us. Depending on who I asked, they either know and aren’t saying yet, or they don’t even know it themselves.

But one thing is for sure, every member of Royal Enfield I questioned seemed to understand that pricing was going to be the critical factor here. They can see which machines have succeed and which have failed over the last few years. People went gangbusters over a $5,000 Metacycle (even if that bike proved too good to be true) and laughed in Can-Am’s face at their $14,000 commuter electric motorcycles.

If I had to guess, I can see Royal Enfield bringing the Flying Flea to market at between US $6,500 to $8,000. Discussions with leaders at Royal Enfield seemed to imply that the company is targeting multiple battery capacities and power levels to create various options for riders, meaning the entry-level model could be quite attractively priced, even if it must give up some range and top end to get there.

Ultimately, we don’t have much substance to judge the Flying Flea on yet. The bike looks great, at least in this journalist’s opinion. But once we can learn what’s going on under the hood and how many paychecks it will set us back, we can get a better idea of how well Royal Enfield can do on its first electric shot.

We will finally see Hyundai’s first three-row electric SUV later this month. Ahead of its big day, The Hyundai IONIQ 9 SUV was spotted in California wearing barely any camouflage. The new sighting gives us our closest look yet.

It’s been almost three years since Hyundai revealed its first three-row electric SUV concept to the world.

Hyundai unveiled the SEVEN concept at the 2021 LA Auto Show, a larger electric SUV to sit above the IONIQ 5 and 6 models. Since then, the company confirmed the new SUV will actually go by the IONIQ 9 when it arrives.

The name change from the expected IONIQ 7 (SEVEN) to IONIQ 9 signals the upcoming SUV’s status as Hyundai’s new flagship model.

During Investor Day in August, Hyundai’s CEO, Jang Jae-hoon, said the IONIQ 9 will be built alongside the updated 2025 IONIQ 5 at its massive new Metaplant America (HMGMA) manufacturing plant in GA, which opened last month.

Ahead of its debut, we’ve seen the larger electric SUV out for testing several times, revealing its big body and sleek new design.

Last week, Hyundai released its first official teaser for the three-row model. With its big day approaching, a new sighting in California gives us a better look at the Hyundai IONIQ 9.

US sighting reveals new Hyundai IONIQ 9 design

The new image from KindelAuto reveals the extended rear end and updated taillight design. The IONIQ 9 is also more curvy and has smoother lines than the concept shown three years ago.

Hyundai said the IONIQ 9 is “the company’s inaugural venture into the realm of large SUV EV models.”

Based on its advanced E-GMP platform, the same underpinning its popular IONIQ 5 and 6 models, Hyundai claims the SUV boasts a “spacious and comfortable interior.”

The company said its new “Aerosthetic” design blends aerodynamic performance and aesthetic design. With an extended wheelbase and single-curved roofline, the IONIQ 9 will have “ample space for all passengers, including those in the third row,” the company said.

Although you can’t see it in the new photo, Hyundai’s IONIQ 9 will also feature its signature parametric pixel front headlight design.

We will find out all the details when Hyundai officially unveils the IONIQ 9 later this month. It’s expected to debut at the 2024 LA Auto Show, starting November 22, 2024. Hyundai also said to watch for more teasers as it approaches its big day.