SCHAUMBURG, Ill.--(BUSINESS WIRE)--Dec 4, 2025--
With the electric vehicle (EV) tax credit expiring at the end of September, the market observed an increase in EV finance transactions in the third quarter of 2025. According to Experian’s (LSE: EXPN) State of the Automotive Finance Market Report: Q3 2025, EV share of new vehicle financing reached 11.36%, up from 10.14% the previous year.
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Perhaps unsurprisingly, with the expiration of the EV tax credit, the percentage of EV leasing grew significantly in Q3 2025. More than 56% of consumers opted to lease a new EV during the quarter compared to just over 46% a year ago. To better understand how the surge in EV leasing impacted the broader market, in Q3 2024, EVs made up less than 18% of the total new lease market. As of Q3 2025, EVs accounted for 1-in-4 new leases.
Interestingly, EVs represented four of the top ten leased models, with Tesla Model Y (4.35%) and Tesla Model 3 (2.58%) accounting for the top two. Meanwhile, the Honda Prologue (1.78%) was the fifth most leased model, and the Hyundai IONIQ 5 (1.49%) was the ninth.
“With the EV tax credit expiring at the end of September, industry analysts expected an acceleration in EV activity during the third quarter,” said Melinda Zabritski, Experian’s head of automotive financial insights. “While most experts are closely watching how consumer interest in EVs evolves over the coming months and years ahead, we can’t lose sight of how the uptick in leasing will shape the market dynamic as these models come off lease and enter the used space.”
Overall finance trends reflect current state of the vehicle market
In the third quarter of 2025, the average interest rate for a new vehicle declined to 6.56%, from 6.65% in Q3 2024. Meanwhile, the average loan amount increased $1,378 year-over-year, reaching $42,332 during the quarter, and the average monthly payment increased from $735 to $748 in the same period.
On the used side, the average interest rate decreased to 11.40% in Q3 2025, from 11.86% last year. However, the average loan amount went up $825 from last year to $27,128 and the average monthly payment slightly grew from $524 to $532 during the same period.
With the average loan amount for new and used vehicles increasing, data showed growth in the longer loan term distributions. For instance, the percentage of new vehicles with 73- to 84-month loan terms increased to nearly 30%, up from just over 27% a year ago. Similarly, the percentage of new vehicles with loan terms of more than 85 months reached 2.31%, up from 1.83% over the same period. Meanwhile, the percentage of used vehicles with 73- to 84-month loan terms increased to 27.22%, from 25.77% the previous year, and the percentage of used vehicles with loan terms more than 85 months reached 1.06%, up from 0.95% over the same period.
“Consumers tend to shop for vehicles based on monthly payment,” Zabritski continued. “Although we’re beginning to see interest rates slowly decline, affordability remains top of mind for many shoppers. It’s not surprising to see some shoppers explore the idea of extending loan terms to secure a lower monthly payment.”
Additional findings for Q3 2025:
To learn more, watch the entire State of the Automotive Finance Market Report: Q3 2025 presentation on demand.
About Experian
Experian is a global data and technology company, powering opportunities for people and businesses around the world. We help to redefine lending practices, uncover and prevent fraud, simplify healthcare, deliver digital marketing solutions, and gain deeper insights into the automotive market, all using our unique combination of data, analytics and software. We also assist millions of people to realize their financial goals and help them to save time and money.
We operate across a range of markets, from financial services to healthcare, automotive, agrifinance, insurance, and many more industry segments.
We invest in talented people and new advanced technologies to unlock the power of data and to innovate. A FTSE 100 Index company listed on the London Stock Exchange (EXPN), we have a team of 25,100 people across 32 countries. Our corporate headquarters are in Dublin, Ireland. Learn more at experianplc.com.
Experian’s State of the Automotive Finance Market Report: Q3 2025
MINNEAPOLIS (AP) — In a city that often seems to be staggering from one crisis to the next, the sudden resignation of police Chief Brian O’Hara after a finding he likely interfered in a misconduct investigation has left Minneapolis searching again for a way forward.
O’Hara was an outsider brought in with a mandate to reform the police department after the 2020 killing of George Floyd, which led to federal and state investigative findings of excessive force and racist policing practices. O’Hara had spent most of his career in Newark, New Jersey, where he instituted changes after that department was put under a federal consent decree for patterns of excessive force and unconstitutional stops and searches.
The challenges in Minneapolis were clear before O'Hara arrived in late 2022. For a time, it had seemed the department itself might not survive. In 2021, more than 43% of voters supported disbanding the department as the city reeled from Floyd’s killing and the massive protests and widespread rioting that followed.
Policing experts had noted the monumental task that faced the city’s next police chief, who would have to rebuild community trust and a department whose morale had dipped so low that it was hemorrhaging officers.
“I don’t think there was a bigger challenge to any American city than what Minneapolis faced when he arrived,” said Chuck Wexler, executive director of a Washington think tank, the Police Executive Research Forum. “They had gone from 850 to 500 officers, violent crime was significantly up, trust with the community was broken, a police station had burned down and a federal consent decree would face the next chief. Then you had the politics of Minneapolis.”
Coming in as an outsider to lead a large department is daunting, even without being asked to reform and rebuild, said Renée Hall, president of the National Organization of Black Law Enforcement Executives who moved from Detroit to lead the Dallas Police Department from 2017 to 2020.
“It’s extremely challenging to walk into an organization, where you don’t even know where the light switches are, where the bathrooms are. And that’s just the basics,” Hall said. “You have to learn the officers, the community, the politics of that particular city, and try to learn and navigate the existing relationships, like unions or officer associations and who is tied to whom and who is fighting for whom.”
Hall said outside hires can face resentment from those within an organization who supported internal candidates. They also have to earn the trust of the community, which she said takes time.
After the police disbandment measure failed, O'Hara joined the bureaucracy of a deeply progressive city that is regularly buffeted by political battles between the mayor and the City Council, and among council members.
Those battles were on full display Wednesday, when a City Council news conference about O'Hara's resignation quickly turned into an opportunity for the council's resolute progressives to attack Mayor Jacob Frey, who has long portrayed himself as a “pragmatic progressive.”
The resignation “is a symptom of a much larger problem, which is simply that Mayor Frey continues to be unable to effectively manage the Minneapolis Police Department,” said Council member Robin Wonsley, a cornerstone of the council's progressive bloc.
Frey, who just weeks ago pushed to have O'Hara reappointed as chief, fired back at criticism that he didn’t move aggressively enough when allegations of the chief's potential misconduct emerged.
“I don’t make decisions based on rumors and anonymous complaints,” he said in a statement, adding that he would work with the council to find a replacement. “I took action promptly after receiving the investigative report. … Decisions this serious have to be grounded in facts, evidence and completed investigations. Anything less would be irresponsible.”
O'Hara did not return a message seeking comment Wednesday. His attorney, Doug Kelley, released a statement touting successes during O'Hara's tenure, including diversifying and increasing the department's ranks, the decreasing violent crime rate and mitigating violent clashes during the immigration crackdown.
“The circumstances of Chief O’Hara’s departure should not define his service," Kelley wrote. "He was proud to serve Minneapolis, remains grateful to the officers and community partners who did difficult work under extraordinary pressure, and hopes the city continues moving forward. He understandably looks forward to returning to his young family in New Jersey.”
The resignation came just months after Minneapolis was plunged into the national spotlight amid a federal immigration surge that left three civilians shot, two fatally. O'Hara faced criticism he hadn't done enough to stop the crackdown.
Violence plagued the city in 2025, including deadly attacks on state politicians in the Minneapolis suburbs; gunfire that erupted at a popular city picnic spot; and a shooting during Mass at the Church of the Annunciation that left two children dead and more than a dozen people injured. O’Hara called the church attack a “ truly unthinkable tragedy. ”
Critics say dozens of complaints were filed against O'Hara, from accusations that he was rude to the public to the recent investigation into an ultimately unproven allegation he had a sexual relationship with a city employee. Most of the complaints have not been made public, and 17 complaints are still being investigated. Investigators closed 17 more without any disciplinary actions.
An independent investigator did not find evidence to substantiate the alleged sexual relationship with a city employee, but a second report released this week said O'Hara likely deleted the employee's contact from his phone during the investigation and that he talked to another employee about the probe despite being told it was not to be discussed.
That recent report led to a written reprimand; Frey told O'Hara he would be disciplined and that he could be terminated. Frey said O'Hara chose to resign instead.
Lauer reported from Philadelphia.
Minneapolis City Council Members, from left, Jason Chavez, Robin Wonsley and Council President Elliot Payne speak to reporters about the resignation of Police Chief Brian O'Hara on Wednesday, May 27, 2026 at City Hall in Minneapolis. (AP Photo/Mark Vancleave)
FILE - Minneapolis Police Chief Brian O'Hara speaks during a news conference, Jan. 10, 2026, in Minneapolis. (AP Photo/Jen Golbeck, File)
