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Electric Vehicle Financing Grew Significantly in Q4 2021

Published: March 31, 2022 by Melinda Zabritski

Electric vehicle charging

Over the past few years, there has been significant momentum in the alternative fuel vehicle market as the speed of new model introductions has raced forward. And now, with more options available and improved infrastructure driving popularity, we’re seeing more consumers finance alternative fuel vehicles than previous years.

The State of the Automotive Finance Market: Q4 2021 report broke down alternative fuel financing trends—specifically how electric vehicle (EV) financing doubled year-over-year. Here are some of the trends we found.

EV vehicle popularity is increasing

While multiple alternative fuel vehicle segments made up 15.91% of new vehicle financing this quarter, an increase from 11.8% in Q4 2020, EV financing has grown significantly compared to half a decade ago. In Q4 2021, EVs made up 4.56% of new vehicle financing, doubling from 2.25% in Q4 2020 and a substantial jump from five years ago at 0.57% in Q4 2016.

As EVs continue to become more popular, looking at what models people finance will help lenders and dealers understand consumer preferences and make more informed decisions. In Q4 2021, three Tesla models made up the majority of the top financed EVs: the Tesla Model 3 took the lead at 36.62%, followed by the Tesla Model Y at 34.18% and the Tesla Model S at 5.3%. Rounding out the top five were the Ford Mustang Mach-E (6.02%) and the Volkswagen ID.4 (3.4%).

The remarkable growth in EV financing demonstrates how influential this fuel type is becoming in the automotive industry.

Average monthly payments for top EV models

Consumer predilections clearly show they would rather purchase a new EV than lease it, with 72.3% of new EV financing being loans and the remaining 27.7% being leases in Q4 2021.

In the past, we have seen some EVs typically have higher monthly payments than other alternative fuel vehicles, but there were many budget-friendly options for EV models this quarter. For example, the average monthly loan payment for a Nissan LEAF was $515 while its average monthly lease payment was $307 in Q4 2021. Similarly, the average monthly loan payment for a Hyundai Ioniq came in at $520 and its average monthly lease payment was $219 this quarter.

It is notable that the overall average monthly loan payment for an EV was $774, while the average monthly lease payment was $688 in Q4 2021.

With many more alternative fuel vehicle models on the horizon, this market will only continue to grow. Understanding the current state of alternative vehicle financing provides industry players additional context to this growing vehicle segment. Staying close to the data enables lenders and dealers make informed decisions in the quarters to come.

To learn more about EV financing and other automotive finance trends, watch the entire State of the Automotive Finance Market: Q4 2021 webinar.

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Published: June 5, 2025 by Melinda Zabritski

Electric vehicles (EVs) continue to gain traction in certain markets. In fact, at the end of 2024, 9.2% of all new retail registrations were electric, up from 8%+ in 2023 and 6%+ in 2022. Clearly, more and more in-market shoppers are leaning towards EVs, but what is actually a determining factor in their decision? A recent Experian survey [1] found 65% of respondents said they prioritize battery life, while 62% consider price, 58% are concerned with range on a full battery and 53% are focused on infrastructure and maintenance. It’s not just EVs, hybrids are getting into the mix While EVs certainly are the buzzword in the industry, it’s not the only alternative fuel type consumers are opting for. For instance, 55% of respondents said they’d consider a new hybrid and 50% said they’d consider a new EV for their next vehicle purchase. On the used side, 38% of respondents said they’d consider an EV and 42% would consider a hybrid. More granularly, the survey revealed 67% of Gen Z and 61% of Millennials are likely to buy a new EV, while 62% and 63% of these groups, respectively, expressed similar intentions for purchasing new hybrid. Gen Z and Millennials also showed a stronger-than-average interest on the used side, with 57% and 49% opting for EVs, and 57% and 52% choosing hybrids. With the younger generations gravitating towards these fuel types, it’s likely going to influence adoption rates down the road, a trend that should be watched closely as manufacturers roll out more models to meet the growing demand. However, when assessing the viewpoints of other generations, some are less likely to purchase an alternative fuel type. Two-in-five, albeit still a healthy percentage, of Gen X respondents said they’re likely to purchase a new EV and only 25% of Baby Boomers shared a similar sentiment. Meanwhile, 27% of Gen X and 12% of Baby Boomers say they’re likely to purchase a used EV. Furthermore, 46% of Gen X and 43% of Baby Boomers indicated they are likely to buy a new hybrid, while 33% and 21% of these groups, respectively, conveyed similar thoughts towards purchasing used hybrids. It’s crucial for professionals to stay attuned to shifting trends and concerns among consumers, as these factors play a role in consumer decision-making. By addressing potential setbacks and knowing where their target audience is, they can better align their strategies with consumer needs as these fuel types continue to move up on the list for everyday commuters. To learn more about EV insights, visit Experian Automotive’s EV Resource Center. [1] Experian commissioned Atomik Research to conduct an online survey of 2,005 adults throughout the United States. The sample consists of adults who estimate they will purchase or lease their next vehicle within the next 24 months or sooner. The margin of error is +/- 2 percentage points with a confidence level of 95 percent. Fieldwork took place between March 24 and March 27, 2025.

Published: April 30, 2025 by Kirsten Von Busch

While many industry pundits are assessing how macroeconomic changes may impact the future of the automotive market, recent data suggests consumers tend to stick to specific fuel types. According to Experian’s Automotive Market Trends Report: Q4 2024, over the last 12 months, 77.5% of electric vehicle (EV) owners replaced their EV with another one, with 15.6% returning to gas-powered vehicles. Meanwhile, 82.2% of gas vehicle owners replaced it with the same fuel type, while only 4.7% made the switch to electric. It’s important for professionals to recognize that most consumers tend to replace their vehicles with the same fuel type. Additionally, knowing who is making these purchases and the types of vehicles being registered allows better anticipation for consumer needs and ultimately enhances the buying experience while fostering consumer loyalty. Breaking down fuel types by generation Through Q4 2024, Baby Boomers predominantly registered new gasoline vehicles, accounting for 74.7% of their choices, while 15.9% opted for hybrids and 6.6% chose EVs. Millennials showed a similar trend, with 69.2% registering gas vehicles, followed by 15.1% selecting hybrids and 12.5% choosing EVs. Gen Z also favored gasoline vehicles at 74.0%, with hybrids making up 14.3% and EVs at 9.1% of their registrations. Although gasoline vehicles account for the majority of new registrations, EVs and hybrids are steadily gaining ground, particularly among the younger generations who are drawn to advanced features that align with their preferences. This will likely play a role in shaping the future of vehicle registrations as more gas alternative models hit the market and consumers make the switch. To learn more about vehicle market trends, view the full Automotive Market Trends Report: Q4 2024 presentation on demand.

Published: April 2, 2025 by John Howard

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