Future Proofing the Leasing Industry Addressing the EV Residual Value

In this webinar, sponsored by NETSOL Technologies and hosted by the American Financial Services Association (AFSA), industry experts Eva Kellershof, VP of Sales North America & Europe, and Erik Wagner, Chief Marketing Officer, discuss the challenges and opportunities in managing electric vehicle (EV) residual values across the automotive finance industry. They explore the current state of EV adoption, the factors driving depreciation uncertainty, and strategies for mitigating residual value risk using AI, predictive analytics, and data-driven asset management.

About This Webinar

Electric vehicles are transforming the automotive industry — but for leasing companies, the rise of EVs introduces a set of residual value challenges that have no precedent in traditional vehicle finance. Unlike combustion vehicles, EVs carry unique depreciation risks driven by rapid technology cycles, battery uncertainty, and volatile market dynamics. This webinar addresses how leasing companies can adapt their platforms, data strategies, and risk models to operate profitably in an EV-dominant market.

Sponsored by NETSOL and hosted by AFSA as part of its Business Partner Webinar series, this session draws on real-world experience from two of NETSOL's senior leaders who work directly with automotive lenders and leasing companies across North America and Europe.

Why EV Residual Values Are So Difficult to Predict

Residual value forecasting is the foundation of lease pricing and EVs make that foundation unstable. The panel identified four core reasons why EV residual values are significantly harder to manage than traditional vehicles:

• Rapid technology cycles: newer, more capable EV models are released frequently, making older models less desirable in the secondary market and accelerating depreciation faster than historical data would suggest
• Battery degradation uncertainty: while battery technology is improving, there is still limited long-term data on how far and how fast EV batteries degrade, creating risk that is difficult to price accurately at origination
• Lack of consumer confidence: hesitancy around range anxiety, charging infrastructure, and long-term reliability continues to suppress residual values in some markets by limiting secondary market demand
• Policy and incentive volatility: government subsidies, tax credits, and emissions regulations change frequently, directly affecting EV pricing and consumer demand in ways that are difficult to model into multi-year lease terms

Industry data cited in the session showed that the average residual value for an EV after three years can be 15–20% lower than a comparable traditional vehicle, a significant exposure for any lender pricing leases at origination.

Key Strategies for Managing EV Residual Value Risk

The session outlined four approaches leasing companies can deploy to mitigate EV residual value exposure:

• AI and machine learning forecasting: advanced analytics platforms can incorporate battery performance data, market trends, and technology trajectories to produce more accurate EV residual value projections than traditional models allow
• OEM partnerships for data access: working directly with EV manufacturers to access vehicle performance and expected resale data allows leasing companies to make more informed origination decisions
• Battery leasing structures: separating the battery from the vehicle in the lease structure reduces residual value uncertainty by removing the most volatile asset component from the depreciation calculation
• Shorter, more flexible lease terms: offering shorter terms and vehicle swap options reduces the window of residual value exposure while giving customers the flexibility they want in a rapidly evolving market.

How NETSOL Supports EV-Ready Leasing Operations

NETSOL's lease servicing solutions are built to support the full lifecycle of complex lease structures — including the flexible, data-driven EV leasing models discussed in this session. For a deeper look at how EV adoption is reshaping lease portfolios across the US market specifically, the effect of EVs on the US auto-leasing market covers the consumer behaviour and lender strategy shifts in detail.

For a real-world reference point on how NETSOL has supported an automotive OEM through the shift to digital-first retail and finance, the MINI USA digital auto retail success story demonstrates the kind of connected, lifecycle-aware platform deployment that EV leasing increasingly demands.

Going Deeper - Related Reading

A full written breakdown of the key insights from this session is available in NETSOL's blog covering EV residual value challenges in leasing, including the specific strategies discussed for data-driven forecasting, OEM partnerships, and new leasing models. This session was recorded and published by the American Financial Services Association on their official channel, watch the full AFSA webinar recording to hear Eva Kellershof and Erik Wagner discuss EV residual value strategy in full.