EV leases hit record high, nearly 1 in 5 new car leases

EV uptick

What’s happening: U.S. consumers are leasing electric vehicles (EVs) at an unprecedented rate, with EVs accounting for 19.9% of all new leases in Q4 2024, according to Experian’s latest automotive finance report. That’s a massive leap from just 2.11% in Q4 2020.

Why it matters:

Leasing is making EVs more accessible to the average buyer. Non-luxury EV lessees are saving $205 per month compared to financing, while luxury EV leases cost $98 less per month than loan payments.

By the numbers (Experian):

• Tesla Model 3: Most-leased EV (12.2% of all EV leases)
• Tesla Model Y: 9.08%
• Honda Prologue: 8.84%
• Hyundai IONIQ 5: 6.88%
• Chevrolet Equinox EV: 5.92%

The big picture:

More than half of all new EV acquisitions are leases, allowing consumers to avoid long-term ownership risks—like battery degradation, technology obsolescence, and uncertain resale values.

What they’re saying:

“Leasing offers a lower payment and the flexibility to transition as EV technology evolves,” said Melinda Zabritski, Experian’s head of automotive financial insights.

What’s next:

Expect automakers to push even more aggressive lease incentives as they battle for EV market share. Meanwhile, new federal incentives for leased EVs could further fuel this trend.