Electric Cars

In an unexpected turn, a prominent judge from a prestigious automotive awards committee has openly questioned the validity of a past decision, specifically regarding last year's Utility Vehicle of the Year recipient. This admission sheds light on the inherent challenges in evaluating brand-new vehicles without the benefit of long-term performance data and market reception. The judge's candid reflection underscores the evolving nature of automotive assessments and the impact of hindsight on critical industry accolades.

Automotive Award Judge Reflects on Controversial 2025 Decision Regarding VW ID. Buzz

On January 19, 2026, during the vibrant Detroit Auto Show, the North American Car, Truck, and Utility Vehicle of the Year (NACTOY) awards unveiled their latest honorees. Amidst the celebrations, Jeff Gilbert, the respected President of NACTOY, engaged in a revealing conversation with Autoblog. When probed about any past award decisions he might now view differently, Gilbert's response was swift and striking. He pinpointed the 2025 Utility Vehicle of the Year award, granted to the Volkswagen ID. Buzz, as a choice he now believes was flawed. The ID. Buzz, introduced to the U.S. market in June 2023 with considerable fanfare in Huntington Beach, California, initially garnered praise for its retro-futuristic design, spacious electric interior, and promising range. Jurors were particularly captivated by its ability to blend nostalgic charm with forward-thinking electric mobility. However, the initial enthusiasm waned as the vehicle struggled with sales, particularly with higher trims priced in the mid-$70,000 range. Despite a celebrity endorsement, market uptake remained tepid. Compounding these issues, the ID. Buzz also ranked last in the 2025 J.D. Power Dependability Study, indicating significant reliability concerns. Volkswagen USA's subsequent decision to pause the ID. Buzz for the 2026 model year further solidified Gilbert's retrospective concerns. He candidly remarked that if jurors had been aware of the vehicle's eventual sales performance, the outcome of the incredibly close vote, which saw the ID. Buzz narrowly beat the Hyundai Santa Fe, might have been different.

This re-evaluation of the ID. Buzz's award highlights a critical tension in automotive journalism and awards: the pressure to recognize innovation and excitement versus the unknown long-term realities of ownership. It serves as a potent reminder that while initial impressions and design elements can be compelling, true automotive excellence is often revealed through the crucible of time, market demand, and consumer experience. This situation prompts a broader discussion within the industry about how to best balance immediate appeal with enduring quality and practicality when bestowing such significant honors.

A significant shift is on the horizon for the automotive industry, specifically within the used car market. The expiration of a large volume of electric vehicle (EV) leases, many of which were initiated under generous federal tax credit programs, is poised to create an unprecedented surge in available pre-owned EVs. This impending wave, primarily commencing in mid-2026, will not only reshape the electric vehicle segment but also ripple through the broader used car landscape. This dynamic will present both exciting opportunities for consumers seeking affordable EVs and strategic challenges for dealerships navigating an evolving inventory.

The Impending Influx of Used EVs: A Market Transformation

In the vibrant automotive market, a notable phenomenon is about to unfold. Between January 2023 and September 2025, over 1.1 million electric vehicles were leased under highly attractive terms, bolstered by a substantial $7,500 federal tax credit, officially known as the Commercial Clean Vehicle Credit (IRS 45W). This incentive significantly boosted EV leasing rates, with nearly half of all new EVs leased by the second quarter of 2024, and almost 58% by the second quarter of 2025, according to data from TransUnion, S&P Global Mobility, and Experian.

As these leases, predominantly 36-month terms, begin to expire, a massive influx of three-year-old EVs will hit the used car market, particularly starting in April 2026. This surge marks a distinct departure from traditional lease-end scenarios. Historically, high vehicle market values during the pandemic meant lessees often purchased their cars. However, for these early EVs, current market values are frequently below their predetermined buyout prices, encouraging a higher rate of returns to dealerships.

Industry experts, including Jeremy Robb, interim chief economist at Cox Automotive, highlight that EV and plug-in hybrid leases have been the primary drivers of the recent leasing resurgence. Cox Automotive projects that the proportion of EVs among off-lease vehicles entering wholesale auctions will nearly triple between September 2025 and September 2026, rising from approximately 5% to 15%. On an annual basis, this figure is expected to climb from under 5% in 2025 to about 12.5% in 2026, and nearly 19% in 2027. Already, in California, EVs account for 20% of used cars at Manheim auctions.

Among the models anticipated to be most abundant are the Tesla Model Y, Tesla Model 3, Hyundai Ioniq 5, Volkswagen ID.4, and Ford Mustang Mach-E. The Jeep Wrangler 4xe is expected to lead among plug-in hybrids. Automakers are exploring strategies, such as extending leases or offering reduced buyout prices, to manage this increased volume of returns.

For current EV owners, especially those with models like the Tesla Model Y or Nissan Leaf, selling sooner rather than later might be advantageous, as the increased supply is likely to accelerate depreciation. This shift will ultimately benefit consumers, offering a wider selection of more affordable used EVs, as noted by CarMax. Conversely, the relative scarcity of gasoline-powered models in the used market could lead to increased prices for traditional vehicles, making used EVs an even more attractive bargain.

This impending market adjustment underscores a fundamental economic principle: supply and demand. The initial government incentives created a robust leasing environment for EVs, and now the culmination of those leases will reshape the secondary market. For consumers, this translates to a golden opportunity to acquire electric vehicles at more accessible price points, accelerating the transition to sustainable transportation. For dealers and manufacturers, it demands innovative strategies to manage inventory and effectively cater to a growing segment of second-time EV buyers and those integrating EVs into multi-car households. The evolving landscape promises a vibrant and competitive market for electric mobility, driving both affordability and broader adoption.