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.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20251204864784/en/
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
Iran fired missiles at Israel and some Gulf nations while explosions could be heard around Tehran and the central Iranian city of Isfahan on Friday, as the United States prepared to further reinforce its already significant military forces in the Middle East.
As the war that began Feb. 28 was to enter its sixth week, Israel, Bahrain, Kuwait warned about incoming missile fire, although it was unclear if anything was struck. Activists reported strikes around Tehran and the central city of Isfahan but it wasn’t immediately clear what was hit.
Iran’s attacks on Gulf region energy infrastructure and its tight grip on the Strait of Hormuz, through which a fifth of the world’s oil and natural gas transits in peacetime, has sent oil prices skyrocketing.
Oil prices surged while Asian financial markets rose moderately during cautious trading. Benchmark U.S. crude rose 11.4% to $111.54 a barrel. The price of Brent crude, the international standard, jumped 7.8% to $109.03 per barrel.
U.S. President Donald Trump said U.S. forces will keep hitting Iran “very hard” in the next two or three weeks.
The largest American aircraft carrier in service sailed out of Split, in Croatia and “remains poised for full mission tasking in support of national objectives in any area of operation,” the Navy’s 6th Fleet announced.
It was unclear where it was going. The USS Abraham Lincoln remains in the Arabian Sea and the USS George H. W. Bush aircraft carrier departed Norfolk on Wednesday to head to the Mideast.
Here is the latest:
Oil prices continued to surge on worries of a prolonged Iran war but the Asian markets that were open Friday rose moderately in cautious trading, while others were closed for the Good Friday holidays.
Benchmark U.S. crude rose 11.4% to $111.54 a barrel. The price of Brent crude, the international standard, jumped 7.8% to $109.03 per barrel.
The U.S. only relies on the Persian Gulf for a fraction of the oil it imports, but oil is a commodity and prices are set in a global market.
The situation is very different in Asia. Japan, for example, relies on access to the Strait of Hormuz for much of the nation’s oil import needs and would need to rely on alternative routes. But some analysts say Japan and oher nations are counting on an agreement with Iran to allow transports.
Japan’s benchmark Nikkei 225 gained 0.9% in Friday morning trading to 52,938.62. South Korea’s Kospi jumped 2.1% to 5,344.41. The Shanghai Composite sank 0.5% to 3,899.57. Trading was closed in Hong Kong, Singapore, Australia, New Zealand, the Philippines, Indonesia and India.
Wall Street, where trading is closed Friday, finished its first winning week since the start of the Iran war, although trading started out with a decline driven by a surge in oil prices.
Bangladesh is curtailing office hours and enforcing early closure of malls and shops beginning Friday to handle its energy crisis related to the war.
The country’s cabinet ordered 30% spending cuts for fuel and power at government offices, suspended some staff training and stopped purchases of new vehicles, ships and aircraft. Decorative lighting will not be allowed for celebrations.
Bangladesh, a nation of more than 170 million people, is seeking alternative fuel sources and $2.5 billion in external financing for imports, which account for 95% of its fuel.
Australian Energy Minister Chris Bowen on Friday urged motorists getting away for a long weekend during the Easter holiday to fill up in cities because most of the nation’s fuel shortages are in rural areas.
Among 2,400 gas stations in New South Wales, Australia’s most populous state, 182 had run out of diesel by Friday.
In Australia’s second-most populous state, Victoria, 76 gas stations were out of diesel. In the remaining states ranked by the most populous first, Queensland had 75 stations without diesel, Western Australia had 37, South Australia had 28 and in Tasmania there were seven.
“For those Australians planning a road trip this weekend, given our shortages are predominantly in rural and regional Australia, it makes sense to fill up in the city to help the country if you can,” Bowen said in Sydney.
The government, which blamed regional shortages on panic buying and distribution problems, is concentrating on delivering fuel to farmers for planting crops.
Israeli security forces and rescue teams inspect a site struck by an Iranian missile in Petah Tikva, Israel,Thursday, April 2, 2026. (AP Photo/Ohad Zwigenberg)
Members from the Popular Mobilization Forces attend a funeral of fighters who were killed in a U.S. airstrike, in Tal Afar, Nineveh province, north of Baghdad, Iraq, Thursday, April 2, 2026. (AP Photo/Hadi Mizban)
A man with burn wounds from an Israeli airstrike on southern Lebanon sits on a bed at the Sidon Government Hospital in Sidon, Lebanon, Thursday, April 2, 2026. (AP Photo/Emilio Morenatti)
A boy who fled with his family following Israeli strikes in southern Lebanon sits inside the van they are using as shelter in Sidon, Lebanon, Thursday, April 2, 2026. (AP Photo/Emilio Morenatti)
President Donald Trump arrives from the Blue Room to speak about the Iran war from the Cross Hall of the White House on Wednesday, April 1, 2026, in Washington. (AP Photo/Alex Brandon, Pool)
