US Electric Vehicle Leasing Surpasses Half New Transactions

Electric vehicle (EV) adoption in the U.S. is reshaping consumer behavior, with leasing surpassing traditional financing due to concerns over rapid technological obsolescence and high depreciation risks. The average lease payment for EVs is significantly lower than loan payments, making leasing an attractive option amid rising EV prices. Despite growing market share and sales, federal support for EVs has faced setbacks under the Trump Administration, which has sought to eliminate federal mandates and tax credits, shifting greater responsibility to state and local incentives, as seen in New York's ambitious climate goals and infrastructure investments. In California, public opinion is divided on phasing out gas-powered cars by 2035, though there is substantial support for state-funded EV tax incentives to replace expiring federal credits. Across the country, states vary widely in their approach, with some offering additional purchase incentives while others impose higher registration fees or taxes on EV charging to offset lost gas tax revenues. These mixed policies reflect the complex balancing act between encouraging EV adoption and addressing infrastructure funding challenges.