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Charging up: The Story Behind Who’s Buying Electric Vehicles

Published: October 26, 2018 by Brad Smith

While electric vehicles remain a relatively niche part of the market, with only 0.9 percent of the total vehicle registrations through June 2018, consumer demand has grown quite significantly over the past few years. As I mentioned in a previous blog post, electric vehicles held just 0.5 percent in 2016. Undoubtedly, manufacturers and retailers will look to capitalize on this growing segment of the population. But, it’s not enough to just dig into the sales number. If the automotive industry really wants to position itself for success, it’s important to understand the consumers most interested in electric vehicles. This level of data can help manufacturers and retailers make the right decisions and improve the bottom line.

Based on our vehicle registration data, below is detailed look into the electric vehicle consumer.

Home Value

Somewhat unsurprisingly, the people most likely to purchase an electric vehicle tend to own more expensive homes. Consumers with homes valued between $450,000-$749,000 made up 25 percent of electric vehicle market share. And, as home values increase, these consumers still make up a significant portion of electric vehicle market. More than 15 percent of the electric vehicle market share was made up by those with homes valued between $750,000-$999,000, and 22.5 percent of the share was made up by those with home values of more than $1 million. In fact, consumers with home values of more than $1 million are 5.9 times more likely to purchase an electric vehicle than the general population.

 Education Level

Breaking down consumers by education level shows another distinct pattern. Individuals with a graduate degree are two times more likely to own an electric vehicle. Those with graduate degrees made up 28 percent of electric vehicle market share, compared to those with no college education, which made up just 11 percent.

Consumer Lifestyle Segmentation

Diving deeper into the lifestyles of individuals, we leveraged our Mosaic® USA consumer lifestyle segmentation system, which classifies every household and neighborhood in the U.S. into 71 unique types and 19 overachieving groups.

Findings show American Royalty, who are described as wealthy, influential couples and families living in prestigious suburbs, led the way with a 17.8 percent share. Following them were Silver Sophisticates at 11.9 percent. Those in this category are described as mature couples and singles living an upscale lifestyle in suburban homes. Rounding out the top three were Cosmopolitan Achiever, described as affluent middle-aged and established couples and families who enjoy a dynamic lifestyle in metro areas. Their share was 10.1 percent.

If manufacturers and retailers go beyond just the sales figures, a clearer picture of the electric vehicle market begins to form. They have an opportunity to understand that wealthier, more established individuals with higher levels of education and home values are much more likely to purchase electric vehicles. While these characteristics are consistent, the different segments represent a dynamic group of people who share similarities, but are still at different stages in life, leading different lifestyles and have different needs. As time wears on, the electric vehicle segment is poised for growth. If the industry wants to maximize its potential, they need to leverage data and insights to help make the right decisions and adapt to the evolving marketplace.

Related Posts

The electric vehicle (EV) market continues to see remarkable growth as both new and used registrations rise year-over-year. For the first time, new EVs accounted for 9.2% of all retail vehicle registrations across the U.S. in 2024, according to Experian’s 2024 EV Year in Review Report, and used EV registrations climbed to just over 1%, from 0.7% the year prior. As we dove into the data, we found that Tesla remains the dominant player in both new and used sectors; however, the shift in consumer preferences is extending across various manufacturers with more models hitting the market. For instance, Tesla accounted for 50.7% of new retail registrations in 2024, from 60.6% in 2023. Meanwhile, Ford increased from 4.7% to 6.2% year-over-year and Hyundai went from 4.2% to 5.4%. On the used side, Tesla made up 59% of retail registrations, from 60% in 2023, while Chevrolet grew from 7.1% to 9% and Nissan was at 5.4%, from 8.3%. As the EV market continues to grow, it’s not just the various manufacturers making waves; geographical trends are also coming into play in shaping how these vehicles are being embraced nationwide. While EV adoption is expanding well beyond the traditional EV strongholds, California still holds the highest number of registrations, with Los Angeles accounting for more than 180,000 new retail EV registrations, followed by San Francisco at 91,000+ and San Diego with more than 31,000. Hartford and New Haven, Connecticut experienced the highest growth in new retail EV registrations over the last five years, reaching 110.5% in 2024. Close behind were El Paso, Texas (with a 99% increase), and Colorado Springs, Colorado (with an 85.7% spike). These shifts highlight the rapid expansion of EV adoption across the country as we see more consumers in diverse areas opting for the fuel type. Analyzing and leveraging the broader range of registrations will help automotive professionals as they identify emerging markets to effectively tailor their strategies. To learn more about EV insights, visit Experian Automotive’s EV Resource Center.

Published: March 18, 2025 by Kirsten Von Busch

Experian’s research reveals changes in the demographics of U.S. renters, now dominated by younger and lower average-income consumers.

Published: January 10, 2025 by Manjit Sohal

Electric vehicle (EV) registrations are re-gaining momentum as a wave of more affordable models hit the market, pushing more consumers than ever to make the transition. According to Experian’s State of the Automotive Finance Market Report: Q3 2024, EVs made up 10.1% of new vehicle financing this quarter, increasing more than 30% from last year. Furthermore, 45% of EV consumers leased their vehicle in Q3 2024—resulting in EVs accounting for 17.3% of all new vehicle leasing. Of the top five transacted EV models this quarter, Tesla accounted for three—with the Tesla Model Y leading at 31.8%, followed by the Tesla Model 3 (14.3%) and Tesla Cybertruck (4.9%). Rounding out the top five were the Ford Mustang Mach-E (3.9%) and Hyundai IONIQ 5 (3.7%). Interestingly, data in the third quarter of 2024 found that consumers’ financing decisions vary based on the EV model they’re looking at. For example, 76.5% of consumers purchased the Tesla Model Y with a loan and 13.1% opted for a lease; on the other hand, only 8.5% of consumers bought the Hyundai IONIQ 5 with a loan and 78.7% chose to lease. Despite the rising interest in leasing as more incentives and rebate programs roll out, some consumers still prefer to purchase their EV with a loan. Understanding financing patterns based on different models is key for professionals as they cater to the diverse preferences and determine the long-term viability of certain EVs and their potential for leasing renewals. Snapshot of the overall vehicle finance market As the finance market continues to stabilize, it’s notable that the average interest rate for a new vehicle fell year-over-year, going from 7.1% to 6.6%, respectively. However, average new vehicle loan amounts increased $736 from last year, reaching $41,068 in Q3 2024, and average monthly payments went from $732 to $737 in the same time frame. On the used side, average interest rates saw a slight uptick to 11.7% in Q3 2024, from 11.6% last year. Meanwhile, the average loan amount dropped from $1,195 over the last year to $26,091 this quarter and the average monthly payment declined from $538 to $520 year-over-year. With the overall market shifting and EVs re-sparking interest, automotive professionals should leverage how consumers are purchasing their vehicles based on average payments and the fuel type as more incentives are being offered. Monitoring these insights can unlock opportunities for tailored financing solutions that meet the needs of consumers as preferences continue to evolve. To learn more about automotive finance trends, view the full State of the Automotive Finance Market: Q3 2024 presentation on demand.

Published: December 5, 2024 by Melinda Zabritski

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