Rush to beat fed EV tax break still weighs on market: Experian

Core Insights - Financing for new electric vehicles (EVs) surged in Q3 2023 before the expiration of the $7,500 federal tax credit on September 30, with early October data indicating continued strong financing activity [1][2][3]. Group 1: EV Financing Trends - EV share of new-purchase finance originations reached 11.4% in Q3 2023, up from 10.1% in the same quarter last year [5]. - Early October data suggests that the share for new EV financing exceeded 13%, indicating a robust continuation of financing activity despite the tax credit expiration [5]. - A last-minute rush to secure financing before the tax credit deadline likely contributed to a backlog, resulting in some EV loans and leases being recorded in October [3]. Group 2: Dealer Sentiment - Dealer sentiment regarding the EV market has declined, with the Cox Automotive Dealer Sentiment Index dropping to 24 in Q4 2025, down from 39 a year ago [6]. - The index was significantly higher at 64 in Q2 2022, reflecting a more optimistic outlook among dealers at that time [6].