Leasing now makes up over 35% of EV transactions

Leasing continues to be one of the most popular options for electric vehicle buyers, accounting for more than a third of all EV transactions in the first quarter.

Where do EV leases stand?

• Leases accounted for 35.2% of all EV financing in the first quarter, according to Experian’s State of the Automotive Finance Market Report. This is nearly three times the percentage recorded a year earlier.

• Tesla’s Model Y was the second most-leased vehicle during Q1, representing 2.69% of all car leases, just behind the Honda CR-V (3.12%).

• Tesla’s Model Y (39.26%), Model 3 (11.88%) and Model X (3.72%) accounted for more than half of Q1’s EV lease total and were, by far, the three most popular electric cars to lease. The Rivian R1S and Volkswagen ID.4 came in fourth and fifth place, respectively.

• Automakers are taking advantage of these trends to drive EV lease demand. The 2024 Kia Niro EV Wind is currently available for $199 a month while Hyundai is offering a $10,000 incentive on the 2024 IONIQ 5 SEL.

Overall lease trends

• While leasing is becoming a more popular option for EV drivers, lease share has also risen across the board. Car leases accounted for 24.12% of all vehicle purchases in Q1, a modest jump from the prior-year period’s 19.33%.

• Monthly lease payments for new cars dropped $7 to an average of $595 over the same period.

Bottom line: The rising preference for EV leases presents opportunities for both dealers and buyers. As time goes on, leasing could prove to be a major driver of adoption, since data shows first-time electric car drivers are likely to abandon gas-powered vehicles permanently.

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