- Leasing overtook financing as the preferred way to get behind the wheel of a new EV in the second quarter.
- 48.7% of new EVs in the United States were leased in Q2, up from last year.
Leasing has become the preferred way for Americans to get behind the wheel of a new electric vehicle in the second quarter of this year, according to data from S&P Global Mobility and TransUnion.
This is different from the same period last year, when financing was the primary way of getting a new EV in the United States, with a rate of 44.6%. That has changed now, with leasing accounting for 48.7% of sales, while financing went down to 34.7%, followed by cash with just 16.6%.
The shift toward leasing is a market-wide trend, but the EV sector saw the biggest change in this direction. In Q1 of this year, the auto loan volume for the entire industry was 1.68 million, down from 1.75 million year-over-year, while leasing went up from 539,000 to 714,000. The percentage of leases attributed to EVs in Q2 2024 was 16.5%, while in Q2 2022 it was 11.0%.
“Consumers are once again returning to leasing as an attractive and affordable alternative to financing new vehicles. This allows them to have the features they want at a subscription-like payment model they have become familiar with across products and services today,” said Jason Laky, executive vice president and head of financial services at TransUnion.
When it comes to EVs, the proliferation of more budget-oriented models, higher inventory levels and the fact that the $7,500 federal tax credit can be applied to any EV when leasing, not just American-made ones, were the main factors at play.
That said, there are fewer people out there who are willing to take the leap and sign the contract for a lease for the first time. According to the data, the rate of first-time lessees has gone down from 33% in 2019 to 30% currently.
In the case of German luxury EVs, almost all of them are leased, as we found out last month thanks to an Automotive News report quoting J.D. Power data. That piece of news showed that roughly 9 out of 10 customers who got a new Mercedes-Benz, BMW or Audi EV chose to lease, not purchase.
