Leasing, variety expand EV popularity, according to Q2 credit data

More variety and low lease payments are driving a shakeup in electric vehicle popularity.

The Tesla Cybertruck and Toyota bZ4X made the list of top-selling new EVs for the first time in the second quarter, according to Experian. The Hyundai Ioniq 5 moved to fourth place from ninth and the Ford Mustang Mach-E moved to third place from sixth.

The Tesla Model Y and Model 3 topped the list again but lost market share. Overall, Tesla's dominance of the EV market has been waning this year. The EV maker's slice of new consumer retail sales shrunk to 51.8 percent in the second quarter, down from 56.6 the previous quarter.

"Leasing is opening up the EV market to consumers who might not have been able to afford an EV — or even a new car — in the past," said Melinda Zabritski, Experian's senior director of automotive financial solutions.

The share of new EVs that were leased reached 47 percent in the second quarter, up from 22 percent the same time last year. Experts largely credit the trend to government incentives that make EV leasing affordable and attractive.

EVs still only made up about 7 percent of the new-vehicle market in the first half of 2024, but the electric space has become more crowded. Many automakers launched new electric models over the past few years, such as Chevrolet's Silverado EV and Ford's F-150 Lightning.

Consumers paid $737 a month on average for an EV lease in the second quarter, compared with $811 a month in 2023. But the typical lease payment for many popular electric models sat below that average. For example, consumers paid $518 a month on average for a Model Y lease and $414 a month for an Ioniq 5 lease.

How consumers are buying EVs also varies widely. For instance, 88 percent of Toyota bZ4X buyers in the second quarter leased their vehicles and only 6 percent paid with a loan. On the other hand, 77 percent of Ford F-150 Lightning buyers paid with a loan and only 7 percent leased.

With more models and prices, the demographic of EV consumers is shifting, Zabritski said. The average credit score for a new-EV buyer fell eight points year over year to 770.

"We are seeing the average score come down because when you look at the leasing figures some of these payments are so low," Zabritski said.