Decline in EV Lease Profits Offset by Finance Gains

September 8, 2025 - 19:58

The average front gross profit per new electric vehicle (EV) lease deal experienced a significant decline in July, dropping by over 100 percent month over month across more than 8,900 dealerships. This sharp decrease highlights the challenges facing the EV leasing market as demand fluctuates and competition intensifies.

Despite the downturn in leasing profits, finance profits have provided a much-needed buffer, helping to mitigate the overall impact on dealership revenues. Many dealerships are now focusing on enhancing their finance offerings to maintain profitability, recognizing that strong finance performance can offset losses in leasing.

As the EV market continues to evolve, dealers are adapting their strategies to navigate these changes effectively. The combination of rising interest rates and shifting consumer preferences may further influence the dynamics of the leasing landscape. With ongoing adjustments, dealerships are hopeful that they can stabilize their finances while meeting the growing demand for electric vehicles.