Following several quarters of incremental growth, consumer interest in electric vehicles re-emerged in the third quarter of 2024. According to Experian’s (LSE: EXPN) State of the Automotive Finance Market Report: Q3 2024, EVs accounted for 10.06% of new vehicle financing during the quarter—growing more than 30% compared to the previous year.

“The growth in EV financing can be attributed to two factors: the EV tax credit and more affordable models hitting the market,” said Melinda Zabritski, Experian’s head of automotive financial insights. “While vehicle pricing, particularly with EVs, continues to be a driving factor in consumers’ purchasing decisions, we’re seeing consumers lean on some of the lease incentive and rebate programs to make the overall cost and monthly payment of EVs more palatable for their specific situations.”

Interestingly, leasing accounted for nearly 45% of all new electric vehicle transactions in Q3 2024, up from 24.97% the previous year and 9.53% in Q3 2022. Part of the appeal could be attributed to significantly lower monthly payments. The average monthly payment for a new EV lease was $198 lower than the average monthly payment for a new EV loan in Q3 2024.

Among the most leased EV models, the Tesla Model 3 (13.60%) held the top spot, followed by the Tesla Model Y (9.30%), Hyundai IONIQ 5 (6.51%), Honda Prologue (5.11%) and Ford Mustang Mach-E (4.86%).