EV Leases Surge, Front-End Profits Collapse
StoneEagle finds that July’s lease market delivered a sharp rebound in volume led by a surge in electric-vehicle leasing, but the gains came at a cost.
StoneEagleDATA’s July 2025 benchmark shows EV leasing drove overall growth, while front-end gross on new leases fell into negative territory.
Photo: StoneEagle
July saw a sharp rebound in leasing volume led by significant growth in electric vehicle leasing, according to new StoneEagleDATA benchmarks. While volume rose, front-end profitability turned negative for the first time since early 2020.
StoneEagle’s analysis, based on more than 8,900 U.S. dealer rooftops, found that the average dealer booked 16.3 new lease deals in July, up 12% from June. EVs accounted for nearly one in five leases, representing a 31% month-over-month increase.
“July’s rebound in leasing came with tighter margins, as dealers leaned on aggressive strategies to move aging inventory ahead of EV tax credit changes,” said StoneEagle CEO Cindy Allen.
July 2025 Highlights
Average new lease deals per dealer: 16.3 (↑ 12% month-over-month)
EV lease penetration: 19.6% (↑ 31% month-over-month)
New lease penetration: 11.2% of all sales (↑ 13.3% month-over-month)
Front gross per lease deal: –$47 (↓ 141% month-over-month)
New retail average front gross: $337 (↓ 25.6% month-over-month)
New lease F&I per vehicle retail: $1,312 (↓ 1% month-over-month)
EVs Driving Lease Growth
Total EV lease volume rose about 46% month-over-month, accounting for nearly all of July’s leasing increase. Year-over-year, EV leases rose 51%, in line with EV sales growth. EV lease penetration has held steady at just over 55% compared with July 2024.
Margins Under Pressure
Average front gross per lease deal shifted from $114 in June to –$47 in July. F&I per vehicle retail remained stable, softening but not eliminating the overall margin squeeze.
“Nearly one in five new leases was electric in July,” said Colin Snyder, general manager of StoneEagle’s Automotive Retail Solutions. “The data shows leasing continues to be a key entry point for EVs in the retail market.”
Originally posted on Auto Dealer Today
More Industry
Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →
State Follows Federal Warning on Auto Ads
The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.
Read More →
Consumer Outlook on the Rise
Younger generations are feeling more positive about their financial futures and current affordability pressures than older generations, according to recent TransUnion data.
Read More →