Experian Automotive released a new report showing strong momentum for EV Financing. This trend happened in the third quarter of 2025. This specific quarter saw the EV Tax Credit expire. Consequently, industry analysts expected more activity. The Experian report clearly confirms this expectation. EV share of new vehicle financing reached 11.36%. This is up from 10.14% compared to the prior year. The percentage of new EV leasing also grew significantly.
Over 56% of consumers opted to lease a new EV. This number is up from 46% just last year. This strong trend has reshaped the lease market. Electric Vehicles now account for one in four new leases. They made up under 18% of the total in the same period last year. This shows a major shift in consumer behavior. Melinda Zabritski commented on these findings. She is Experian’s head of automotive financial insights. She noted that leasing will shape the used car market. These models will eventually enter the used space.
Why EV Leasing is Increasing
EVs were among the top 10 leased models. For example, the Tesla Model Y held the top spot. The Tesla Model 3 was the second-most-leased model. Furthermore, the Honda Prologue and Hyundai IONIQ 5 also made the top ten. Consumers are clearly looking for flexible EV Financing options. Longer loan terms also led to overall growth. Loan terms of 73 to 84 months grew to nearly 30%. This helps shoppers secure a lower monthly payment.
The average interest rate for new vehicles slightly declined. It dropped to 6.56% from 6.65% year-over-year. However, the average loan amount also increased. It rose to $42,332 during the third quarter. Consumers shop based on monthly payment affordability. Therefore, longer loan terms remain a key strategy. This new EV Financing data from Experian Automotive offers crucial market insight. It highlights the growing importance of leasing. The market is finding new ways to adapt.
Explore Finance Tech News for the latest innovations in financial technologies and expert insights shaping the future of digital finance!
News Source: Businesswire.com
