The U.S. electric vehicle market is dominated by leasing, far exceeding the industry average with rapid growth. The industry average is around 20%, showing a significant gap, and the reasons behind this trend are complex.
The "leasing loophole" allows leases to qualify for federal subsidies, while purchases face more restrictions. Automakers also offer additional discounts, with models like the Hyundai Ioniq5 and Kia Niro EV providing low-rent options. For consumers, leasing enables quick access to new models, upgrades, and avoids the risk of rapid depreciation in electric vehicles.
In the coming years, as leases expire, a large number of used electric vehicles will flood the market. While this provides opportunities for buyers to access low-cost vehicles, it may also impact residual values.
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