StoneEagle: July EV Lease Surge Came at Steep Cost to Profitability
Dealers sacrificed profitability for EV lease volume in July, according to the latest StoneEagleDATA benchmark insights, which find average front-end gross on lease deals fell into the red last month for the first time in five years.
Data from more than 8,900 U.S. rooftops show an average of 16.3 new lease deals in July, a 12% increase from the prior month, with lease penetration for new EVs rising to 19.6%, up 31% from June. (Lease penetration for all new vehicles was up 13.3% to 11.2%.)
All those EV leases came at a steep cost, analysts say, noting average front-end gross on lease deals fell to -$47 in July — down from $114 the prior month — while F&I profit per vehicle retailed was “relatively steady.”
“StoneEagleDATA gives the industry a clear view of the forces shaping dealership performance,” writes StoneEagle CEO Cindy Allen in a release. “In July, the story wasn’t just about a rebound in leasing — it was about front-end gross on leases turning negative for the first time since early 2020. While F&I performance helped cushion the impact, our data shows that dealers leaned on aggressive lease strategies, particularly in EVs, to clear aging inventory ahead of expiring EV tax incentives.”
Last week, StoneEagle reported F&I income from new vehicle sales increased by 10% in July with slight downticks in average F&I profit per vehicle retailed and products per deal.
