Residual value insurance is a type of insurance that protects lenders, lessors, and investors against the depreciation of an asset's value over time. This type of insurance is commonly used for leased vehicles, where the lessee is responsible for the difference between the residual value (the estimated value of the asset at the end of the lease term) and the actual market value of the vehicle at the end of the lease. By securing residual value insurance, businesses can protect themselves against potential losses due to depreciation and fluctuations in the market which can be especially helpful when financing electric vehicles since there is a fair amount of uncertainty surrounding their future value. Ultimately, residual value insurance can help make financing a commercial electric vehicle a more secure and viable option for businesses looking to transition to more sustainable transportation solutions.

Watch the video to see how RVI Group helped an electric vehicle ride share platform get better financing by guaranteeing the value their fleet of electric vehicles.