Consumers financed more than 91,000 used electric vehicles (EVs) in 2022, up 45% from 2021, according to Experian data.
Experian’s research shows consumers chose Capital One Auto Finance most often for their EV financing needs. The company captured 6.7% of the used-EV market, 0.2 points ahead of Wells Fargo Auto. Bank of America took the third spot, handling 4.8% of used-EV financing.
Experian reported the 2019 Tesla Model 3 was the most popular financed used EV. This vehicle model captured 11% of the loan and lease markets. The 2020 Tesla Model 3 placed second at 8.1%, and the 2018 Model 3 took the third-place spot at 7.7%.
For other automakers, the 2021 Ford Mustang Mach-E captured the largest share at 2.6% or 7th place.
According to Experian, around 80% of used-EV loans involved models from the 2018 model year or newer.
Experian data shows used-EV borrowers had the highest credit scores among all used-vehicle powertrain categories, averaging a 729 compared to 673 for consumers financing used gasoline models. Around 81% percent of used-EV borrowers had prime or super-prime credit scores, compared to 56% of customers purchasing used gasoline-powered vehicles.
The data shows 62% of used EVs sold in 2022 were financed with a loan, up 57% from 2021. Used-EV leases captured 3.3% of the market down from 3.7% in 2021. Banks and credit unions dominated the used EV finance market, capturing 42% and 34% of the finance market, respectively.
Payments on average used-EV loan hit $792 monthly payment, up from $614 in 2021. The average used-EV value also increased from 2018 and 2022, shifting from $28,024 to $53,367.
The payments may be higher, but Experian reports consumers are only financing 92% of their vehicle now, versus 104% of its value in 2018.