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WBY SCHAUMBURG, ILL. - BUSINESS WIRE
ith electric vehicles (EVs) continuing to become a viable option for prospective vehicle shoppers, one trend stands out: EV buyers opting to lease. According to Experian’s (LSE: EXPN) State of the Automotive Finance Market Report: Q4 2024, more than 50% of new EV purchases were leases, and EVs accounted for nearly 20% of all new vehicle leases during the quarter. By comparison, EVs only made up 2.11% of new vehicle leases in Q4 2020.
“Leasing has always been a cost-effective alternative for consumers hoping to drive away with a more palatable monthly payment—EVs are no different,” said Melinda Zabritski, Experian’s head of automotive financial insights. “But it’s not just affordability. Leasing offers consumers the opportunity to buy an EV without worrying about the potential resale value down the line. With many EVs set to come off-lease in the next few years, it will be interesting to see how the used EV market unfolds.”
While the difference between the average monthly loan and lease payments are significant ($142), the difference in the average monthly loan and lease payments for EVs is even higher. In Q4 2024, the average payment difference between a loan and lease across all EVs was $175. Interestingly, non-luxury EVs generated the greatest payment difference at $205, meanwhile the difference between the loan and lease payment for luxury EVs was only $98.
Among the most leased EVs, the Tesla Model 3 continued to maintain its lead at 12.20%, followed by the Tesla Model Y (9.08%), Honda Prologue (8.84%), Hyundai IONIQ 5 (6.88%) and Chevrolet Equinox EV (5.92%). The Tesla Model 3 (2 nd ), Tesla Model Y (5 th ) and Honda Prologue (6 th ) were also among the top 10 of all leased vehicles.
Expanding beyond the EV market, the report showed more financing is comprised of late-model vehicles (model years up to three years old). More than 66% of loans were for vehicles up to three model years old in Q4 2024, up from 63.92% the previous year.
Part of the shift could be attributed to lower interest rates and average monthly payments for new vehicles. While the average loan amount for a new vehicle experienced a modest increase during the quarter reaching $41,572, up $1,088 from the previous year, the average monthly payment decreased $1 to $742. The stability in average monthly payment is likely driven by the decrease in interest rate during the quarter. In Q4 2024, the average interest rate for a new vehicle was 6.35%, down from 7.16% a year ago.
Meanwhile, the used vehicle market observed positive trends among financing attributes. The average loan amount for a used vehicle decreased $344 year-overyear to $26,468 and the average monthly payment dropped $10 to $525 over the same period. Similarly, the average interest rate declined from 11.97% to 11.62%.
Despite the lower average loan amounts and monthly payments, all risk segments experienced declines in used vehicle financing.
“With manufacturer incentives, the continued resurgence of leasing and lower interest rates, we’re seeing consumers across the board shift back into the new market,” continued Zabritski. “That said, the market remains fluid. Similar to EV market, as vehicles come off lease over the next 2-3 years and late-model vehicle availability increases, how will that impact consumer purchasing behavior?”
30-day delinquencies increased from 3.08% in Q4 2023 to 3.17% in Q4 2024, while 60-day delinquencies rose from 0.96% to 0.99% over the same period.The percentage of used vehicles with financing reached 36.50% in Q4 2024, down from 38.72% a year ago.The average credit score for a new EV declined from 773 in Q4 2023 to 767 in Q4 2024.Bank market share for new vehicle financing grew to 24.83%, up from 20.17% the previous year. Meanwhile, banks saw their market share of used vehicle loans increase from 26.10% in Q4 2023 to 28.68% in Q4 2024. More than 30% of prime and super prime consumers are choosing to lease.
BY ALEX HALVERSON - THE SEATTLE TIMES (TNS)
An electric truck maker with deep Amazon roots is going to try and shake up the market next year.
Electric vehicle startup Slate, which emerged from stealth mode this week, announced on Thursday it had developed a light-duty truck that was both high-tech and simple. It’s a customizable electric truck without power windows.
The price comes with a small caveat. With an electric vehicle tax credit, Slate expects it to come under $20,000.
“The definition of what’s affordable is broken,” Slate CEO Chris Barman said in a news release. “Slate exists to put the power back in the hands of customers who have been ignored by the auto industry. Slate is a radical truck platform so customizable that it can transform from a 2-seat pickup to a 5-seat SUV.”
A regulatory filing from 2023, first reported on by TechCrunch, shows the company raised $111 million for the project under the name Re:Car Inc. The project was spun out of Re:Build Manufacturing, an incubator for new-age industrial companies.
Re:Build is chaired by Jeff Wilke, Amazon’s longtime retail CEO who retired in
January 2021. Wilke was listed as a director for the Slate project’s funding round in 2023 along with Melissa Lewison, who heads Amazon founder Jeff Bezos’ family office. Wilke spent 22 years with Amazon, helping the company build its logistics empire. In what was a nod to his industrial roots, Wilke was well known for wearing a flannel shirt during the fourth quarter of every year — Amazon’s busy holiday shopping season. His companywide memo in August 2020 announcing his decision to step away was titled “Hanging up the flannel.”
In a departure from modern vehicles, both electric and gas-powered, Slate is marketing the truck as “radically simple.” Aside from a base model offering crank windows, it also eschews a screen installed in the dash.
“Rather than learn a new interface, use the one you love,” the news release said. “Add a dedicated tablet if you want to.”
The company projects 150-mile range on a full charge with an optional battery pack that could go as high as 240 miles. Slate doesn’t expect to deliver vehicles until late 2026.
©2025 The Seattle Times. Visit seattletimes.com. Distributed by Tribune Content Agency, LLC.
BY MICHAEL CANTU – EDMUNDS
Car shoppers considering buying an electric vehicle in 2025 will have more factors to consider than buyers in previous years. Most of it is good news. For instance, automakers are continuing to introduce new EVs and improve their current models. Expanded charging options and very attractive used EV prices are also hot topics for this year. But there are also negative trends you need to watch out for. Edmunds’ auto experts break down what you can expect before heading out and buying an EV for 2025.
According to the NPR article “ Here’s how Trump’s tariffs could impact you and your wallet,” the price for certain imported electric vehicles will increase with the Trump administration tariffs. Tariffs on other components or materials used for vehicle manufacturing will also have an impact. Estimates vary widely on how much extra you might have to pay should these tariffs be in effect for a long duration, but it could potentially be thousands of dollars depending on the vehicle.
The new administration has also said it would repeal the federal EV tax credit of $7,500 for new EVs and $4,000 for used EVs. Right now, certain new EVs qualify for a $7,500 tax credit, which can be put toward the sales price with a purchase or lease or toward your tax liability if you purchase it. Used EVs priced under $25,000 can qualify for a tax credit of up to $4,000.
Tesla charging stations, which used to be available to Tesla vehicles only, are now open to most non-Tesla EVs. This expansion includes Tesla’s vast network of fastcharging stations called Supercharger stations, and it’s a big deal because it significantly increases the number of charging stations EV owners can use. Public charging stations from various third-party companies like EVgo and Electrify America were the only options for non-Tesla EVs in the past. Tesla’s network of charging stations is nationwide and the largest in the country. The stations are also very reliable and are rarely offline.
Tesla stations can be easy to use once everything is set up. But you need to check with your vehicle’s manufacturer to find out how to use a Tesla charging station and likely buy or obtain a charging connector adaptor.
EV shoppers have plenty of choices in 2025, and most of these models offer plenty of range. Many vehicles, like the Ford Mustang Mach-E and Hyundai Ioniq 5, provide over 300 miles of range on certain models. Some high-dollar EVs from Mercedes-Benz and Lucid and electric trucks from GM easily exceeded the 400-mile mark when Edmunds tested them.
EVs are also becoming more affordable; a few have starting prices below $35,000 even without the federal tax credit, including the Chevrolet Equinox EV and Hyundai Kona Electric. For the lowest monthly payments, consider leasing an EV. Automakers offer great lease deals during certain months thanks to big incentives and the tax credit.
Even with federal tax credits, a new EV is typically more expensive than a comparable gas-powered vehicle. But the resale value of EVs — essentially, how much they are worth a few years after purchase — is dropping quicker than those for gas-powered vehicles. That’s great news if you’re in the market for a used EV. For example, 2022 Ford Mustang Mach-E GTs that cost more than $60,000 when new are now selling in the low $30,000s.
However, this big drop in value isn’t so great if you’re the one trying to sell or trade in your used EV. You’ll likely be surprised and dismayed that your vehicle is worth substantially less than what you bought it for. It’s especially bad if you owe a significant amount of money on your loan. It’s possible you could owe more on your loan than what the vehicle is actually worth.
If you’re planning on buying an EV this year, it’s best to do it soon in case EV tax credits are repealed and in case prices increase. If you do purchase one, find out how to get access to Tesla charging stations because they are far easier to use than the various third-party stations.
BY HENRY PAYNE - THE DETROIT NEWS (TNS)
Like a St. Bernard, my Hyundai Kona tester is two-toned and funky-looking outside — fiercely loyal on the inside.
Its looks may not be for everybody, but it’s got everything you need. Hyundai has been one of the industry’s most creative stylists with lookers like the Lego-brick Santa Fe and bar-of-soap Ioniq 6 EV. The 2025 Kona goes ultramodern with a design right off a Mars movie lot. Wraparound running lights like a Tesla Cybertruck, low headlights/taillights integrated into black fender cases, abstract Mondrian wheels, sharply-angled hatchback like a Bladerunner spinner.
My 32-year-old son thought it was cool.
My 34-year-old son hated it.
Let’s call it polarizing. Otherwise, Kona proved a welcoming companion. On a dark, rainy Wednesday night, I slipped into the interior of my Neoteric Yellow (a color made for Florida) $28K Enterprise rental in Orlando International Airport and surveyed an interior that wouldn’t be out of place in a $60K luxury car: molded console and hoodless 22-inch screen arching across the dash housing twin digital instrument/infotainment displays. Yum.
It’s a common sight in Hyundai models these days in both internal combustion engine and electric vehicles — including the Kona EV across the Enterprise aisle across from my gas mule. With 261 miles of range, the Kona EV could theoretically make the 260-mile round-trip to my Sebring International Raceway destination. With rain and highway travel in the forecast, I knew that range could be cut by 25%.
And Sebring is in the middle of rural Florida.
With a tight, busy weekend racing schedule ahead and Sunday return flights out of Orlando, I opted for the Kona ICE with its 422 miles of range and ease of use. Though a small ‘burg two hours from everywhere, Sebring did have charging infrastructure: two fast chargers at its Lakeshore Mall, a pair of 240-volt chargers at our destination hotel and ... an eight-stall Tesla Supercharger in Route 98 through town.
The latter was particularly significant as Hyundai now has access to Tesla chargers, and — beginning with the ‘25 model year — Kona EV models are equipped with Tesla-style NACS charge ports so you don’t need to worry if there is an adaptor in the trunk.
Still, the convenience and efficiency of gas power made the Kona ICE the obvious choice for this trip.
Also worth noting was the electric Kona SE model ($34,952 market price) would have cost $16.50 to fuel every 100 miles at 50 cents/per kWh versus $9.50 for the 31-mpg Kona SEL model ($28,085) at $3-a-gallon regular gas. Indeed, I never visited a gas station until it was time to top up the Hyundai outside the airport at weekend’s end for return to the rental lot.
Like the Kona experience, gas power was carefree. Kona fit like a glove. For the drive into Florida’s interior, I synced the car wirelessly to my phone’s Android Auto app then barked my destination: Navigate to Sebring International Raceway.
Done. Hyundai was one of the first automakers to adopt smartphone apps, and Kona paired like it was old pals with my phone. Other brands can be less certain, their screens spinning before finally making a connection.
I exited the rental garage into a black, wet monsoon. While I navigated the conditions outside, Kona’s ergonomics helped me easily navigate interior controls. Climate buttons on the dash were horizontal, logically laid out between twin temperature dials.
Hyundai has adopted GM’s philosophy on raised steering wheel controls, so I could set cruise control with one button, then finger a scroll wheel next to it to adjust speed. All by touch so that I didn’t need take my eyes off the road. Similar buttons on the wheel’s right spoke controlled radio and volume while other switches (voice control, lane-centering) were nicely segregated when needed.
The subcompact SUV class is a shark tank of competitors, and Hyundai — long a value brand — trails some rivals in standard safety equipment. Both the Mazda CX-30 and Volkswagen Taos, for example, offer adaptive cruise control and blindspot assist standard for fewer rubles than Kona. Kona, however, does match the palatial V-dub in rear-seat space with knee room that bests a compact BMW X3.
The Kona design may look Chunky Monkey, but under the hood it’s all vanilla.
The 2.0-liter, four-cylinder Hyundai has about the same horsepower — 147 — as my 1,000-pound, 2.0-liter, four-cylinder Lola sports racer. Yet, the SUV weighs three times as much (3,053 pounds). Mate those horses to a CVT and there were few thrills to be had on rural Sebring roads.
Want more grunt? Kona offers an N Line model starting at $31K with a punchy turbocharged 1.6-liter mill making 190 horsepower. For harsher climates than Florida in February, Kona also offers all-wheel drive for an extra $1,500.
My Kona SEL satisfied with its 31 mpg and quiet interior — deftly isolating the drone of the CVT. My son’s eyes may have been burning looking at the Kona’s lime exterior, but after a long day of racing across Sebring’s brutal bumps and high-g load turns, the Kona offered comfy seats, lots of hatch space for our gear, and a spare tire if needed.
Nice to have a St. Bernard on call.
• Vehicle type: Front-engine, gas-powered, front- and-all-wheel-drive, five-passenger SUV
• Price: $25,745, including $1,450 destination fee ($28,085 SEL as tested)
• Powerplant: 2.0-liter inline-4 cylinder; 1.6-liter turbo-4
• Power: 147 horsepower, 132 pound-feet torque (2.0L); 190 horsepower, 195 pound-feet torque (1.6L)
• Transmission: Continuously-variable (2.0L); eight-speed, dual-clutch automatic (1.6L)
• Performance: 0-60 mph, 9.2 seconds (Car and Driver est.); top speed: 110 mph
• Weight: 3,053 pounds (FWD as tested)
• Fuel economy: EPA fuel economy: 29 city/34 highway/31 combined (FWD 2.0L); 26 city/32 highway/28 combined (FWD 1.6L)
Report card
• Highs: Sci-fi styling; A-plus ergonomics
• Lows: Polarizing styling; vanilla performance
• Overall: 3 stars ✩✩✩
BY KYLE STOCK - BLOOMBERG NEWS (TNS)
When Artie R. Williams decided it was time to kick his gas habit, he narrowed his search to three options: the Cadillac Optiq, a Porsche Macan EV and the Polestar 3. — none of which has been on the market for more than a few months.
Tesla wasn’t on the table.
“Nothing against Elon (Musk), but those vehicles have been out for so long,” said Williams, a healthcare marketer in Dallas, from the driver’s seat of his weeks-old Polestar. “Meanwhile, this thing is new, it’s innovative. It had a funky look to it and I knew people were going to be like ‘What are you driving?’ And I like that.”
Sales of electric vehicles climbed to 294,000 in the first quarter of the year, a 10.6% increase compared with the year-earlier period. January through March is a relatively slow time for car sales, nevertheless EVs moved off the lot much more frequently than cars and trucks in general. (Total U.S. auto sales were nearly flat in the first quarter).
EV adoption is cruising along in the U.S., despite a backlash against the industry’s largest player and the Trump administration’s push to wind back clean energy incentives and emissions regulations. Interest is spreading from early-adopters to mainstream consumers, from EV evangelists to the EV-curious. Williams, for example, isn’t concerned about his personal emissions or climate change. He’s just tired of paying for gasoline and oil changes and considers the preponderance of new EVs a better, more reliable form of technology.
The gains came in spite of (and in some cases because of) struggles at Tesla, the country’s market-leader for battery-powered vehicles. Tesla sold 1.3 million cars in the quarter, a 9% decline from the year-earlier period. Sales of rival brands, meanwhile, collectively notched a gain of 32%. In two years, Tesla’s share of the U.S. EV market has skidded from almost two-thirds to less than half.
A grassroots boycott of the brand in response to CEO Elon Musk’s heavy-handed efforts to streamline federal employment drove some of the sales swoon. JPMorgan has characterized the backlash as “unprecedented brand damage.”
Tesla net income slid 71% in the first quarter and the company widely missed analyst estimates on revenue. Tesla Chief Financial Officer Vaibhav Taneja said vandalism and hostility were to blame, in part, for double-digit percent declines in vehicle deliveries.
However, there is also a crowd of EV converts that aren’t so much put off by Musk as they are attracted to a parade of newer products. Of the 63 or so fully electric cars and trucks on the U.S. market, one quarter weren’t available a year ago. The product blitz includes the first EV offerings from Acura, Dodge and Jeep, second models from Mini and Porsche and two more battery-powered machines each from Cadillac and Volvo.
“There’s just a lot of competition now,” explained Stephanie Valdez Streaty , director of industry insights at Cox Automotive. “And it’s not just one make or model that’s
filling in that (Tesla) gap … The familiarity of these brands is really driving people.”
Many of the new EVs are relatively affordable. Cox estimates the price spread between EVs broadly and internal combustion cars and trucks has shrunk to just $5,000. General Motors, meanwhile, plans to resurrect its Chevrolet Bolt later this year with a price point around $30,000.
“We’re about giving customers a choice,” CEO Mary Barra told Bloomberg. “Over the long term, we think EV demand will grow.”
Hayden Jones, a Microsoft retiree in Seattle, loved his two Tesla Model Ys, but traded them both in a few weeks ago. He’s come to consider Elon Musk “a bit of a lunatic.”
“I was getting post-it notes when I parked,” he explained, “and it’s a slippery slope from putting a sticker on someone’s car and setting it on fire.”
Jones said both of his new cars – a BMW iX and a Polestar 3 – seem higher quality than his Teslas and comfortably haul his two massive dogs, a 170-pound Newfoundland and a 70-pound mutt. Polestar knocked $5,000 off as part of a new marketing program to lure Tesla refugees like Jones.
Globally, EV sales are only expected to accelerate. BloombergNEF expects drivers to buy 22 million battery-powered vehicles this year, a 30% increase from 2024. In the U.S., it forecasts slightly more bullish demand, a sales increase of 31.5%.
However, tariffs could broadside EV-curious shoppers. Factories from the Rust Belt to the Deep South stamp out gas-powered engines with ease, but U.S. plants are still spooling up slowly on batteries, leaving EVs far more exposed to tariffs. Nearly 70% of lithium-ion batteries in the U.S. come from China and now face tariffs of up to 73%.
“We definitely have some strong headwinds coming for EVs,” Valdez Streaty explained.
Of the 1.5 million EVs purchased in the U.S. last year, slightly more than one third were imported. Today, each of those products faces a 25% tariff. BloombergNEF reckons that slice of the market will shrink by 58%, either because the vehicles will become too expensive or they won’t arrive at all. Jaguar Land Rover and Audi, for example, have paused shipments of certain models to America.
Meanwhile, an additional 25% tariff is expected on car parts in early May, a measure that would crunch the economics on EVs assembled in America, either chiseling down profit margins or inflating sticker prices – or both.
The Detroit stalwarts – Ford, General Motors and Stellantis-owned Dodge and Chrysler – are among the carmakers most exposed to Trump’s trade war. Two of the most popular (and most affordable) EVs on the market – Ford’s Mustang Mach-E and the Chevrolet Equinox EV – are both bolted together in Mexico. Meanwhile, the Chrysler Pacifica hybrid is made in Windsor, Ontario just across the Detroit River from the c-suites of Motown.
The carmaker least exposed to Trump’s trade war — at least for the moment — is Tesla, as its machines roll out of massive factories in California and Texas. Those vehicles face plenty of other challenges, though.