Industry representative Matt Cota says new-vehicle registrations fell and EV leases will swell used-market supply

An industry representative told the Vermont House Committee on Transportation on April 8 that new-vehicle registrations in the state have declined while electric-vehicle leasing is likely to increase the supply of used EVs over the next two years.

Matt Cota, who identified himself as a Meadow Hill employee representing the Vermont Transportation Energy Network and the Vermont Vehicle and Automotive Distributors Association, said the groups compiled data from Experian Auto Count for the Vermont Vehicle Index and that “seven out of 10 cars use gasoline” among newly registered vehicles. He told lawmakers that new registrations in the first three months of 2026 were lower than in the first quarter of 2025 and that used-vehicle registrations have risen in the same period.

Cota emphasized leasing patterns as a key driver of near-term used-EV supply. Citing his presentation, he said that, for the most recent quarter, leases accounted for about 30% of EV acquisitions and that “70% of the battery electric vehicles sold or registered by Vermonters in 2025 were leased.” He said manufacturers’ incentives, a change in how federal tax credits could be applied to leases beginning in 2024, and consumer uncertainty about battery longevity all contributed to the high lease share.

Those leases are now coming off, Cota said, and industry reporting plus Experian data indicate that off-lease EVs are expected to make up nearly 15% of off-lease used-vehicle supply—roughly double earlier levels. He cautioned that how dealers and buyers respond will vary by make, model and region, and that the market impact on prices and gasoline demand is uncertain.

On gasoline and diesel sales, Cota presented Vermont fuel-index numbers showing that gasoline sales for January–February 2026 were about half a percentage point above the five‑year average while diesel was a few percentage points below it; he noted March figures were not yet available. He also said vehicle- and fuel-related fees are a significant portion of the transportation budget.

Committee members pressed for more detail on several points. One member asked whether Cota had an average new-vehicle price; he said he did not have that figure available but would obtain it. Another asked about a financing category labeled “36% unknown”; Cota said that number comes from Experian Auto Count and that he would try to break down the category and follow up with Representative McCoy. When a member raised battery‑longevity concerns as a reason consumers lease EVs, Cota replied that most batteries are covered under warranty and reiterated the role of incentives in driving lease uptake.

Cota also put the data in a policy context: he said Governor Scott had issued an executive order pausing Vermont’s advanced clean car regulation and that a subsequent federal action rescinded the ability for California and other states to require manufacturers to deliver EVs under that regulation, changes he said have affected manufacturer and dealer behavior.

The presenter directed committee members to vermont10.org for ongoing updates and said he would provide follow-up data requested during the meeting. The committee adjourned without taking any formal votes on the presentation.