EV Adoption Weighs on Gas Car Resale Values, Damping Profits at BMW and VW

BMW and Volkswagen warn that declining residual values for internal combustion vehicles are squeezing margins across their automotive financing and leasing arms. Rapidly shifting consumer preferences toward electrified powertrains have accelerated depreciation on used gas-powered fleets, leading to unexpected valuation write-downs. The shift underscores the broader financial ripple effects legacy automakers face as the EV transition reshapes used-vehicle market dynamics.