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
NEW YORK (AP) — U.S. stocks largely held in place as Wall Street waits to hear what the Federal Reserve will say Wednesday about where interest rates are heading. The S&P 500 edged down by 0.1% Tuesday, though it remains near its all-time high. The Dow Jones Industrial Average dipped 0.4%, and the Nasdaq composite added 0.1%. JPMorgan Chase was the heaviest weight on the market after a top executive said the bank’s expenses could rise about 9% next year. Treasury yields climbed following an update on U.S. job openings. The report could persuade the Fed that the economy doesn’t need much more help from lower interest rates.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
NEW YORK (AP) — U.S. stocks are drifting on Tuesday as Wall Street waits to hear what the Federal Reserve will say on Wednesday about where interest rates are heading.
The S&P 500 was virtually unchanged and remained near its all-time high, which was set in October. The Dow Jones Industrial Average was down 124 points, or 0.3%, with less than an hour remaining in trading, and the Nasdaq composite was 0.2% higher.
Exxon Mobil was one of the strongest forces pushing upward on the market. It climbed 2.3% after increasing its forecast for profit over the next five years, thanks in part to strength for its fields in the Permian basin in the United States and off Guyana’s shore.
But JPMorgan Chase dragged on the market after a top executive, Marianne Lake, said expenses for the bank could hit $105 billion next year. That would be up 9% from an estimated $95.9 billion this year, though Lake also said JPMorgan Chase is “feeling pretty good about the underlying financial health of the borrowers in our portfolio.” Its stock fell 3.9%.
Another drop came from Toll Brothers, which fell 1.2% after the homebuilder reported weaker results for the latest quarter than analysts expected.
CEO Douglas Yearley Jr. said demand for new homes remains soft across many markets. But he pointed to how his company’s luxury homes aim more at affluent customers, who may be less hurt by “affordability pressures” than other potential homebuyers.
One big factor in that affordability question is mortgage rates. They’re cheaper than they were at the start of the year, though they perked up a bit after October. That’s largely because of questions in the bond market about how much more the Federal Reserve will cut its main interest rate.
The widespread expectation is that the Fed will cut interest rates Wednesday afternoon, which would be the third such easing of the year. Lower interest rates can give the economy and prices for investments a boost, but the downside is they can worsen inflation.
The U.S. stock market has run to the edge of its records in part because of the near assumption that the Fed will cut rates again on Wednesday.
The big question is what the Fed will say about where interest rates will go after that. Many on Wall Street are bracing for talk aimed at tamping down expectations for more cuts in 2026.
Inflation has stubbornly remained above the Fed’s 2% target, and Fed officials are notably split in their opinions about whether high inflation or the slowing job market is the bigger threat to the economy.
Treasury yields climbed in the bond market after a report on Tuesday showed that U.S. employers were advertising 7.7 million job openings at the end of October. That's up a smidgen from the month before and the highest since May.
If the job market is not worsening, it may not need as much help from the Fed through more cuts to rates.
After the report on job openings came out, the yield on the 10-year Treasury erased what had been an earlier dip. It rose to 4.18% from 4.17% late Monday.
The yield on the two-year Treasury, which moves more closely with expectations for what the Fed will do, rose to 3.60% from 3.57% late Monday.
Elsewhere on Wall Street, Ares Management climbed 8.9% after S&P Dow Jones Indices said the investment company will join its widely followed S&P 500 index. It will replace Kellanova, the maker of Pringles and Pop-Tarts, which is being bought by Mars, the company behind Snickers and M&Ms.
CVS Health rose 3.1% after unveiling new financial forecasts, including expectations for annual compounded growth in earnings per share at a “mid-teens” percentage over the next three years.
“We are committed to doing what we say,” said Chief Financial Officer Brian Newman, who also said CVS Health is closing out 2025 with strong momentum.
Home Depot fell 0.9% after flipping earlier between gains and losses. It gave a preliminary forecast for 2026 that said the broad home improvement market may shrink by up to 1%. But it also gave a separate set of forecasts saying its earnings per share could grow in the mid- to high-single digit percentages if the housing market recovers.
The market’s most influential stock, Nvidia, slipped 0.7% after President Donald Trump allowed it to sell an advanced chip used in artificial-intelligence technology to “approved customers” in China. The H200 is not Nvidia’s top product.
In stock markets abroad, indexes were mixed Europe and Asia.
Indexes fell 1.3% in Hong Kong and 0.7% in Paris for two of the world’s bigger moves.
AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
A currency trader watches monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Monday, Dec. 8, 2025. (AP Photo/Ahn Young-joon)
A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Tuesday, Dec. 9, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)
A person walks in front of an electronic stock board showing Japan's Nikkei and New York Dow indexes at a securities firm Tuesday, Dec. 9, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)
A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Tuesday, Dec. 9, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)
A person walks in front of an electronic stock board at a securities firm Tuesday, Dec. 9, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)
