Podcast: Unlocking EV potential through leases, used market

The Auto Finance Roadmap

Leasing an EV or buying a used one offers a more affordable option in today's challenging market, but many consumers remain hesitant.

Nearly 8.5% of new purchases were EVs, and more than 46% of those are leased, according to Experian’s second-quarter state of the auto market report, published on Sept. 5.

Part of the drive in EV leasing is affordability. The average payment difference between a lease and a loan across all EV models is $88 per month, according to Experian. EV lease deals often qualify for the $7,500 tax credit under the Inflation Reduction Act.

Used EV values have continued to fall and were down 11% year over year in August, according to the Exponential Used Vehicle Index, which measures price changes for wholesale electric vehicles, considering models, vehicle features and mileage.

Still, only 34% of consumers are preparing to buy an EV in the next two years, down from 48% a year ago, according to the 2024 Consumer Mobility Index from EY, which provides insights on capital markets.

In this special episode of “The Roadmap,” Auto Finance News Associate Editor James Van Bramer discusses how to tap into EV leasing and declining used EV values with John Possumato, founder and chief executive of DriveitAway, and Elena Ciccotelli, founder and host of the “EVs for Everyone Podcast.”

Auto Finance Summit, the premier industry event for auto lending and leasing, returns Oct. 7-9 at Wynn Las Vegas. To learn more about the 2024 event and register, visit www.AutoFinanceSummit.com.