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Why consider an electric vehicle (EV) in 2024? Whether you're interested in fuel economy, eco-friendliness or pure style, you have more EV options than ever. The most popular electric vehicle (EV) as of September 2024 is the Tesla Model Y, according to data from Experian's second quarter (Q2) State of the Automotive Finance Market report.
The top 10 new EV models include a range of SUVs and trucks from familiar names like Ford and Toyota as well as new brands like Rivian. Read on for the full list of top 10 EVs, along with some intel on leasing versus loan costs.
Top 10 New Electric Vehicle Models
The 10 most popular EVs represent an expanding universe of clean vehicles available in the U.S. Where only a few models existed 10 years ago, today's top 10 includes a range of SUVs, a few trucks (Ford F-150 Lightning and the Tesla Cybertruck) and a compact sedan (the Tesla Model 3). The Tesla Model Y is the clear favorite of the bunch, capturing a full 36% of the EV market.
| Top 10 New Electric Vehicle Models | |
|---|---|
| EV Model | Market Share |
| Tesla Model Y | 36.40% |
| Tesla Model 3 | 9.19% |
| Ford Mustang Mach-E | 4.42% |
| Hyundai IONIQ 5 | 3.94% |
| Rivian R15 | 2.77% |
| Tesla Cybertruck | 2.74% |
| Cadillac LYRIQ | 2.39% |
| Toyota bZ4X | 2.29% |
| Ford F-150 Lightning | 2.21% |
| Tesla Model X | 2.14% |
Source: Experian
Learn more >> Can You Still Get a Tax Credit for an Electric Car?
More People Are Choosing to Lease EVs
In 2024, leasing became the most popular way to finance a new EV. Roughly 46.56% of EV owners chose leasing over buying when they obtained a new EV, according to Experian data. EV buyers used loans to finance new vehicles 36.8% of the time and paid cash (or used alternative financing) 16.64% of the time.
Leasing Grows in Popularity
Leasing has roughly doubled its share of EV financing since 2023, when it represented 21.73% of new EV purchases; it's more than tripled its share since 2022. Below, here's how EV purchasers have financed their vehicles since 2019.
How Consumers Are Financing EV Purchases
Why Are More People Leasing EVs?
Plenty of pros and cons exist for leasing versus buying EVs. Opting to buy an EV means never worrying about mileage restrictions imposed by a lease agreement, and not having to return your car in a few years. And if you normally hold on to your vehicles for several years, your long-term costs may be lower when you purchase (and eventually resell) your car.
Leasing an EV also has its benefits, however, most of which center around affordability. Here are a few to start.
- Lower monthly payments: Payments are generally lower on a lease because you aren't paying for the car's value outright. Instead, your contract is based on the amount your vehicle will depreciate over the lease term. See the table below for details on how lease payments compare to loan payments on the top 10 leased vehicles.
- Low down payment: A typical down payment on a lease is $0 to $3,000.
- Less worry about depreciation: EVs have a bit of a reputation for depreciating in value more quickly. Though many factors may be in play, outdated technology and battery wear are common concerns. With a lease, you can return your vehicle after a few years of use without worrying whether advanced technology on newer models has cut into your car's value.
- Federal tax credits: Clean vehicle tax credits of up to $7,500 are available on EV purchases, but the list of qualifying vehicles is still relatively short. Some leasing companies offer a workaround by claiming a similar commercial tax credit (available on a wider selection of vehicles) and passing savings along to their customers. As a result, leasing an EV may cost less than leasing a comparable gas-powered vehicle, though you'll have to evaluate lease deals on a case by case basis.
Learn more >> The Do's and Don'ts of Leasing a Car
How Monthly Payments Compare Across Top EV Models
Choosing leasing over buying can reduce the monthly expense attached to getting a new EV. Experian found that leasing saved an average of $88 per month across all EV models. Here's how average monthly lease payments compare to loan payments for the top 10 leased EVs.
| Average Monthly Payment for the Top 10 Leased EV Models | ||
|---|---|---|
| EV Model | Average Monthly Loan Payment | Average Monthly Lease Payment |
| Tesla Model Y | $649 | $518 |
| Tesla Model 3 | $692 | $437 |
| Hyundai IONIQ 5 | $777 | $414 |
| Toyota bZ4X | $714 | $394 |
| BMW i4 | $901 | $748 |
| Nissan Ariya | $757 | $411 |
| Rivian R1S | $1,208 | $849 |
| Ford Mustang Mach-E | $707 | $579 |
| Volkswagen ID.4 | $619 | $506 |
| Tesla Model X | $805 | $464 |
Source: Experian
The Bottom Line
If you're in the market for an EV, have fun checking out the new models but be prepared to do some serious comparisons on financing. Whether you're interested in buying an EV (with or without federal tax credits) or negotiating a great rate on a lease, figure out your down payment and monthly payments for each option. Deals can vary from dealer to dealer, so you may want to visit more than one.
This is also a great time to check your Experian credit report and FICO® Score☉ for free. Good credit may help you get the best rates and terms on a loan or lease. Get a handle on your credit before you start shopping, so you know what to expect when you apply—and can address any issues in advance.