Huge Opportunity: EV Lease Returns are Flooding Dealers While Gas Prices Continue to Soar

How best to take advantage? We ask Jimmy Douglas of Plug Motors

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A tsunami of leased electric vehicles are coming back to dealers as we speak, and it’s causing chaos for both dealers and consumers alike.

Electric vehicle leasing exploded in 2022, thanks to the primarily to the Inflation Reduction Act, which allowed dealers to pass along a $7,500 incentive to consumers who opted to lease instead of buy. As a result, nearly 1 million EVs were leased from 2022 to 2025. In 2023 alone, half of the EVs that left dealerships were leased.

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Is now the the right time to pick up an lease-return EV? Signs indicate yes, as thousands of of them come back to dealers. Jimmy Douglas of Plug Motors tells us why...

As most leases run 24 to 36 months, we are starting see a massive increase in lease returns. J.D. Power predicts lease returns to jump by 230 percent in 2026, while Cox Automotive predicts 600,000-plus lease expirations across 2027 and 2028. Remember all those last-minute killer deals in the fall of 2025, before the $7,500 EV incentive went away? Yep, 2028 is 36 months later.

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So, what are dealers going to do with a bunch of used off-lease EVs? Well, at first we heard they were panicking due to perceived low demand. But now, with gas prices rising again due to a war with Iran that has gone hot again, interest in EVs has picked up. It seems there is a tremendous opportunity for both dealers and those interested in trying out a used EV.

So, who better to have on our future-focused podcast than Jimmy Douglas, the founder of Plug Motors, a marketplace dedicated to the used EV market?

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From Tesla to Plug Motors

Prior to founding Plug Motors, Douglas spent five years at Tesla, mostly as the general manager of Tesla’s used car operation. As we discuss on the pod, of course, this experience informs the founding of Plug Motors and the opportunities Douglas sees in the building a marketplace that specializes in used EVs.

Douglas is full of insights into what is going on right now in this space, and what both dealers and EV curious shoppers can do to find the best deals.

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Tune in for an entertaining take on the Ferrari Luce.

And before you go thinking Douglas is only interested in EVs, you should know he is quite the automotive connoisseur and collector, having amassed a collection of 30 cars before he turned 30 years old. And, as you’ll find, he has a Testarossa-red hot take on the newest, most controversial EV, the Ferrari Luce.

You can watch right here or on our YouTube channel. If audio is your thing, download the podcast here or wherever you listen to your podcasts. Like us? Please tell your friends, share us on social media, like the video, and don’t forget to give
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I used to go kick tires with my dad at local car dealerships. I was the kid quizzing the sales guys on horsepower and 0-60 times, while Dad wandered around undisturbed. When the salesmen finally cornered him, I'd grab as much of the glossy product literature as I could carry. One that still stands out to this day: the beautiful booklet on the Mitsubishi Eclipse GSX that favorably compared it to the Porsches of the era. I would pore over the prose, pictures, specs, trim levels, even the fine print, never once thinking that I might someday be responsible for the asterisked figures "*as tested by Motor Trend magazine." My parents, immigrants from Hong Kong, worked their way from St. Louis, Missouri (where I was born) to sunny Camarillo, California, in the early 1970s. Along the way, Dad managed to get us into some interesting, iconic family vehicles, including a 1973 Super Beetle (first year of the curved windshield!), 1976 Volvo 240, the 1977 Chevrolet Caprice Classic station wagon, and 1984 VW Vanagon. Dad imbued a love of sports cars and fast sedans as well. I remember sitting on the package shelf of his 1981 Mazda RX-7, listening to him explain to my Mom - for Nth time - what made the rotary engine so special. I remember bracing myself for the laggy whoosh of his turbo diesel Mercedes-Benz 300D, and later, his '87 Porsche Turbo. We were a Toyota family in my coming-of-age years. At 15 years and 6 months, I scored 100 percent on my driving license test, behind the wheel of Mom's 1991 Toyota Previa. As a reward, I was handed the keys to my brother's 1986 Celica GT-S. Six months and three speeding tickets later, I was booted off the family insurance policy and into a 1983 Toyota 4x4 (Hilux, baby). It took me through the rest of college and most of my time at USC, where I worked for the Daily Trojan newspaper and graduated with a biology degree and business minor. Cars took a back seat during my stint as a science teacher for Teach for America. I considered a third year of teaching high school science, coaching volleyball, and helping out with the newspaper and yearbook, but after two years of telling teenagers to follow their dreams, when I wasn't following mine, I decided to pursue a career in freelance photography. After starving for 6 months, I was picked up by a tiny tuning magazine in Orange County that was covering "The Fast and the Furious" subculture years before it went mainstream. I went from photographer-for-hire to editor-in-chief in three years, and rewarded myself with a clapped-out 1989 Nissan 240SX. I subsequently picked up a 1985 Toyota Land Cruiser (FJ60) to haul parts and camera gear. Both vehicles took me to a more mainstream car magazine, where I first sipped from the firehose of press cars. Soon after, the Land Cruiser was abandoned. After a short stint there, I became editor-in-chief of the now-defunct Sport Compact Car just after turning 30. My editorial director at the time was some long-haired dude with a funny accent named Angus MacKenzie. After 18 months learning from the best, Angus asked me to join Motor Trend as senior editor. That was in 2007, and I've loved every second ever since.

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