The rules around federal EV tax credits changed at the beginning of this year, making it more difficult for vehicles to qualify. Even so, buyers can get around the rules by leasing an EV, which opens the door to the full $7,500 credit regardless of the model. That loophole has driven an explosion in EV leases, with recent data showing that almost half of new electric models in the U.S. are leased.
The data comes from S&P Global Mobility and TransUnion. It shows that 48.7 percent of new EVs on America’s roads are leased, up from 33.6 percent in the same quarter of 2023. Financed EVs declined to 34.7 percent, and cash sales accounted for just 16.6 percent.
TransUnion’s executive vice president and head of financial services, Jason Laky, said, “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.”
Foreign automakers have seen an even higher rate of customer leases, with German brands like BMW, Mercedes-Benz, and Audi leasing nearly every EV sold.
While leasing may be a popular way around tax credit restrictions, it’s also a good way to get behind the wheel of a new EV without a long-term commitment. Buyers skeptical of EV longevity or battery life don’t have to sign on for a five-plus-year loan, and the vehicles remain under warranty during the lease period.
[Images: Ford, Volvo, Chevrolet]
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