Due to higher rates for the past two years, consumers have remained conservative when it comes to vehicles purchases in the hopes the rates will decrease. Our research shows that with projected reductions in interest rates, these consumers will likely unlock pent up demand and result in greater vehicle sales; especially for buyers who plan to purchase through traditional or alternative financing models.

Research indicates consumer interest in Hybrids is outpacing interest in EVs with certain geographic regions making more EV and Hybrid purchases than others. Consumers are gravitating away from traditional Internal Combustion Engines (ICE) as anticipated, but the hype around EV has simmered compared to that of Hybrid.

Although EV still trends upward in consumer interest, we’re seeing Hybrid interest out pace EV interest by more than double. It is certain, however, that consumer interest in traditional ICE vehicles is seeing a continued decrease as more automotive brands lean into more sustainable options.

The 2024 election will have the greatest long-term impact on EV incentives and EPA’s mandates; the CARS Rule, direct sales, and China EV regulation will likely be unaffected. Both primary political parties have polarizing plans of action when it comes to incentives for EV purchases and how consumers should be rewarded. OEMs might have to switch production priorities based on potential changes to the rebate structure dependent on the election outcome.