After a Period of Decline, EVs Provide a Jolt to the Leasing Market
TransUnion's new study reveals a resurgence in auto leasing, with electric vehicles (EVs) playing a important role. Key findings include:
1. Leasing volumes increased from 539K in Q1 2023 to 714K in Q1 2024, approaching pre-pandemic levels.
2. EV leases accounted for 16.5% of all leases in Q2 2024, up from 11% in Q2 2022.
3. Nearly 50% of all EV originations in Q2 2024 were leases, more than double the percentage three years prior.
4. Factors driving EV leasing growth include increased inventory, dealer incentives, IRA tax credits, and more affordable options.
5. However, first-time leasees decreased to 30% in 2024, down from 33% in 2019, presenting a growth opportunity for dealers.
Un nuovo studio di TransUnion rivela un ritorno del leasing auto, con i veicoli elettrici (EV) che giocano un ruolo importante. I principali risultati includono:
1. I volumi di leasing sono aumentati da 539K nel Q1 2023 a 714K nel Q1 2024, avvicinandosi ai livelli pre-pandemia.
2. I leasing di EV hanno rappresentato il 16,5% di tutti i leasing nel Q2 2024, rispetto all'11% nel Q2 2022.
3. Quasi il 50% di tutte le origini di EV nel Q2 2024 erano leasing, più del doppio della percentuale di tre anni prima.
4. I fattori che guidano la crescita del leasing di EV includono un aumento dell'inventario, incentivi per i concessionari, crediti d'imposta IRA e opzioni più accessibili.
5. Tuttavia, i nuovi affittuari sono diminuiti al 30% nel 2024, rispetto al 33% nel 2019, presentando un'opportunità di crescita per i concessionari.
Un nuevo estudio de TransUnion revela un resurgimiento en el leasing de automóviles, con los vehículos eléctricos (EV) desempeñando un papel importante. Los hallazgos clave incluyen:
1. Los volúmenes de leasing aumentaron de 539K en el Q1 2023 a 714K en el Q1 2024, acercándose a los niveles previos a la pandemia.
2. Los leasing de EV representaron el 16,5% de todos los leasing en el Q2 2024, frente al 11% en el Q2 2022.
3. Casi el 50% de todas las originaciones de EV en el Q2 2024 fueron leasing, más del doble del porcentaje de hace tres años.
4. Los factores que impulsan el crecimiento del leasing de EV incluyen un aumento en el inventario, incentivos para concesionarios, créditos fiscales IRA y opciones más asequibles.
5. Sin embargo, los arrendatarios primerizos disminuyeron al 30% en 2024, desde el 33% en 2019, lo que presenta una oportunidad de crecimiento para los concesionarios.
TransUnion의 새로운 연구는 전기차 (EV)가 중요한 역할을 하는 자동차 리스의 재부흥을 보여줍니다. 주요 발견 사항은 다음과 같습니다:
1. 리스량이 2023년 1분기 539K에서 2024년 1분기 714K로 증가하여 팬데믹 이전 수준에 가까워졌습니다.
2. EV 리스는 2024년 2분기 모든 리스의 16.5%를 차지하며, 2022년 2분기의 11%에서 증가했습니다.
3. 2024년 2분기의 모든 EV 원천의 거의 50%가 리스였으며, 이는 3년 전의 비율보다 두 배 이상입니다.
4. EV 리스 증가를 이끄는 요인은 재고 증가, 딜러 인센티브, IRA 세금 크레딧 및 더 저렴한 옵션 등이 있습니다.
5. 그러나 처음 리스하는 고객은 2024년에 30%로 감소했으며, 2019년의 33%에서 감소하여 딜러에게 성장 기회를 제공합니다.
Une nouvelle étude de TransUnion révèle un renouveau dans le leasing automobile, avec les véhicules électriques (EV) jouant un rôle important. Les principales conclusions incluent :
1. Les volumes de leasing ont augmenté de 539K au T1 2023 à 714K au T1 2024, se rapprochant des niveaux d'avant la pandémie.
2. Les leases de EV ont représenté 16,5 % de tous les leasings au T2 2024, contre 11 % au T2 2022.
3. Près de 50 % des origines d'EV au T2 2024 étaient des leases, soit plus du double du pourcentage d'il y a trois ans.
4. Les facteurs qui propulsent la croissance du leasing de EV incluent l'augmentation des stocks, les incitations pour les concessionnaires, les crédits d'impôt IRA et des options plus abordables.
5. Cependant, les primo-leaseurs ont diminué à 30 % en 2024, contre 33 % en 2019, ce qui représente une opportunité de croissance pour les concessionnaires.
Eine neue Studie von TransUnion zeigt eine Wiederbelebung des Autoleasings, wobei Elektrofahrzeuge (EV) eine wichtige Rolle spielen. Die wichtigsten Ergebnisse sind:
1. Die Leasingvolumina stiegen von 539K im Q1 2023 auf 714K im Q1 2024 und nähern sich damit den Werten vor der Pandemie.
2. EV-Leasing machten im Q2 2024 16,5% aller Leasingverträge aus, im Vergleich zu 11% im Q2 2022.
3. Fast 50% aller EV-Originationen im Q2 2024 waren Leasingverträge, also mehr als doppelt so viel wie vor drei Jahren.
4. Faktoren, die das Leasingwachstum von EVs antreiben, sind gestiegene Bestände, Händleranreize, IRA-Steuergutschriften und erschwinglichere Optionen.
5. Allerdings ist der Anteil der Erstleasingnehmer 2024 auf 30% gesunken, von 33% im Jahr 2019, was eine Wachstumschance für die Händler darstellt.
- Leasing volumes increased from 539K in Q1 2023 to 714K in Q1 2024, approaching pre-pandemic levels
- EV leases accounted for 16.5% of all leases in Q2 2024, up from 11% in Q2 2022
- Nearly 50% of all EV originations in Q2 2024 were leases, more than double the percentage three years prior
- Increased inventory, dealer incentives, and IRA tax credits are driving EV leasing growth
- First-time leasees decreased to 30% in 2024, down from 33% in 2019, potentially limiting lifetime value for dealers
Insights
The resurgence of auto leasing, particularly in the electric vehicle (EV) sector, represents a significant shift in consumer behavior and market dynamics. This trend has several implications for investors in the automotive and financial sectors:
- Market Recovery: The increase in leasing volumes from
539K in Q1 2023 to714K in Q1 2024 signals a recovery towards pre-pandemic levels, indicating improved consumer confidence and market stability. - EV Market Penetration: The rise in EV leases from
11.0% in Q2 2022 to16.5% in Q2 2024 suggests accelerating EV adoption, which could benefit EV manufacturers and related industries. - Dealer Inventory Management: The shift towards leasing may help dealers manage inventory more effectively, potentially improving their financial performance and stock valuations.
- Financial Services Impact: Companies involved in auto financing and leasing, including TransUnion (NYSE: TRU), may see increased business volumes and potentially improved profitability.
However, the decline in first-time leasees (from
The shift towards EV leasing is a game-changer for the automotive industry, with profound implications for manufacturers, dealers and the broader EV ecosystem:
- EV Adoption Acceleration: The surge in EV leasing, now accounting for nearly
50% of all EV originations in Q2 2024, could significantly accelerate EV adoption rates. This trend may benefit pure-play EV manufacturers and traditional automakers with strong EV portfolios. - Supply Chain Dynamics: Increased EV leasing could lead to more predictable demand patterns, potentially easing supply chain pressures and inventory management for manufacturers.
- Dealer Strategies: The shift towards leasing, especially for EVs, may require dealers to adapt their sales and marketing strategies. This could lead to changes in dealership valuations and market positioning.
- Secondary Market Impact: As more EVs enter the leasing cycle, we can expect a growing supply of off-lease EVs in the coming years. This could reshape the used car market and potentially impact residual values.
The industry must also address the challenge of attracting first-time leasees to sustain growth. Manufacturers and dealers may need to develop innovative marketing strategies and leasing products to expand the customer base, which could influence their competitive positions and financial performance.
The TransUnion study reveals significant consumer behavior shifts that could reshape the automotive market landscape:
- Payment Preferences: The trend towards leasing, with lower monthly payments (
$517 for non-luxury leased vs.$707 for non-luxury financed), aligns with the growing consumer preference for subscription-like payment models across various products and services. - EV Perception: The rapid growth in EV leasing suggests a changing perception of EVs among consumers. They appear more willing to try EVs through leasing, potentially due to concerns about long-term maintenance or rapid technological advancements.
- Price Sensitivity: The introduction of lower-priced EV models and increased lease incentives indicates that price remains a important factor in EV adoption. This could influence marketing strategies and product development in the EV sector.
- Consumer Loyalty: With only
38% of lease terminators opting for another lease, there's a significant opportunity to improve customer retention in the leasing market. This could drive innovations in lease terms and customer experience.
These trends suggest a need for adaptive marketing strategies in the automotive industry. Companies that can effectively address these changing consumer preferences and concerns may gain a competitive edge in both the EV and broader automotive markets.
New TransUnion study finds electric vehicles increasingly driving gains in the leasing market
CHICAGO, Aug. 01, 2024 (GLOBE NEWSWIRE) -- A new TransUnion (NYSE: TRU) study released today found that consumers are beginning to turn to auto leasing once again, with electric vehicles (EVs) playing a key role in helping drive the reemergence of this market. This follows an extended period of decline in the auto leasing market brought forth by the pandemic.
The study, The State of Auto Leasing: Current Trends and How to Leverage Them In the Future, explored emerging trends in auto leasing ranging from volume to loyalty measures to vehicle types, in addition to the credit profiles of those who leased and financed.
The study found that the ratio of auto loans to leasing is beginning to look more like that which was seen in 2020 as opposed to the post-pandemic lows of late 2021 and 2022. In fact, from Q1 2023 to Q1 2024, leasing volumes increased from 539K to 714K, a figure much more in line with the 781K observed in Q1 2020. The research also showed a corresponding regression in loan originations as consumers are considering their choices with leasing options now available.
“Consumers are once again returning to leasing as an attractive and affordable alternative to financing new vehicles. This allows them to have the features they want at a subscription-like payment model they have become familiar with across products and services today,” said Jason Laky, executive vice president and head of financial services at TransUnion. “This upward trend also offers benefits to dealers as it means more consumers coming back to their showrooms, and also a return to a steady supply of gently used vehicles for the pre-owned market.”
Leasing Volume Has Increased From Post-Pandemic Lows and Is Approaching Pre-Pandemic Volumes
| Q1 2020 | Q1 2021 | Q1 2022 | Q1 2023 | Q1 2024 | |
| Auto Loan Volume | 1.50 million | 2.04 million | 1.84 million | 1.75 million | 1.68 million |
| Auto Lease Volume | 781K | 887K | 570K | 539K | 714K |
Source: AutoCreditInsight by S&P Global Mobility, TransUnion
The study also looked at the credit profiles and activity among those consumers who terminated a lease to gain insights into what those consumers did next. The study found that
The credit scores (VantageScore 4.0) among all of these groups were similar, within approximately a 30-point range. Each group saw a similar payment increase over their previous payment. Those who leased a new vehicle saw an increase in of
Incentives and Increased Options Fuel EV Leasing
The overall percentage of leases that could be attributed to electric vehicles has also seen a significant increase in recent years. In Q2 2024, the percentage of leases attributed to EVs was at
Among the driving factors in the rapid growth of EV leasing are the following:
- A stabilization, and then increase, in the inventory levels of EVs at dealerships
- An increase in dealer lease incentives among EVs
- The application of IRA tax credits towards leased EVs beginning in January 2023
- More EV options at lower leasing price points for consumers
- An increased preference for a lower or maintenance-free leasing option for EVs
This increase has gone a long way in reshaping the EV origination market as more consumers are now leasing their EVs rather than financing them. In Q2 2024, nearly
Consumers are Increasingly Choosing to Lease EVs in Lieu of Financing
| Q2 2021 | Q2 2022 | Q2 2023 | Q2 2024 | |
| % of EVs Leased | ||||
| % of EVs Financed | ||||
| % of EVs Cash Purchase/Other |
Source: AutoCreditInsight by S&P Global Mobility, TransUnion
“Auto leasing has been up overall in recent quarters, but nowhere more so than in the EV market, where leasing has now surpassed financing as the preferred option among consumers,” said Satyan Merchant, senior vice president and auto and mortgage line of business leader at TransUnion. “Multiple factors have contributed to this, but two of the most significant include an increase in lower-priced models being introduced, as well as more new dealer leasing incentives on EVs.”
Not all was quite as rosy when it came to study results, however, as it showed dealers still have work to do when it comes to enticing first time leasees to engage in the market. In fact, year-to-date in 2024, only
Merchant continued, “Fewer consumers are choosing to become first-time leasees. This ultimately decreases the lifetime value of those consumers and limits opportunities for dealers, so that’s an area of concern. But it’s also a real growth opportunity for dealers moving forward, as many consumers who may be looking for a pre-owned vehicle later in 2024 and into 2025 may find fewer lease returns resulting in a smaller inventory. That’s a group that dealers should consider trying to turn into first-time leasees and should aggressively market towards.”
To learn how TransUnion TruAudience can help dealers and lenders identify marketing opportunities that can help maximize ROI, click here. To learn more about the study, click here.
About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.
http://www.transunion.com/business
| Contact | Dave Blumberg TransUnion |
| dblumberg@transunion.com | |
| Telephone | 312-972-6646 |
FAQ
How has the auto leasing market changed according to TransUnion's study?
What percentage of leases were attributed to electric vehicles in Q2 2024?
What factors are driving the growth of EV leasing?
How has the percentage of first-time leasees changed in recent years?
