New research finds that borrowers financing fuel-efficient vehicles, particularly EVs, are less likely to fall behind on loan payments. Drawing on an analysis of 379,000 auto loans, the study reveals that EV buyers had the lowest predicted delinquency risk but still paid higher financing costs than comparable gasoline vehicle purchasers. As electric vehicles become increasingly mainstream, these findings highlight a growing disconnect between loan pricing and repayment risk.
We thank Natural Resources Defense Council for their support and collaboration in developing this work.
