As consumers navigate elevated fuel costs and continued affordability pressures, new Experian Automotive data shows vehicle shoppers increasingly gravitating toward hybrid models. According to Experian’s (LSE: EXPN) State of the Automotive Finance Market Report: Q2 2026, hybrids accounted for 16.80% of new vehicle financing during the quarter, an increase from 12.99% in Q2 2025. Meanwhile, electric vehicle (EV) market share declined from 9.21% to 8.15% over the same period.

“With the EV tax credit expiring last year, hybrids seemingly have become a more attractive option for consumers, particularly for those looking to save some money at the pump,” said Melinda Zabritski, Experian’s head of automotive financial insights. “But we’re also seeing hybrids offer greater financial flexibility, likely driven in part by manufacturer incentives that are making hybrids more cost-effective than in previous years.”

Hybrids carry a lower monthly payment than other vehicle segments

Interestingly, hybrids carried the lowest average monthly payment for both new loans and leases across all fuel types. In Q2 2026, the average monthly payment for a new hybrid vehicle loan was $646, followed by EVs at $692, and gasoline-powered vehicles at $721. For new leases, the average monthly payment for a hybrid was $566, while gasoline-vehicles had a monthly average of $602, and EVs came in at $641.

Meanwhile, from a total market perspective, data from the second quarter of 2026 found the average loan amount for a new vehicle climbed $1,715 year-over-year, reaching $43,610, and the average monthly payment increased $16 to $765 compared to the previous year. However, the average interest rate for a new vehicle dropped to 6.35% this quarter, from 6.79% last year.

On the used side, the average loan amount saw an uptick of $875 year-over-year, coming in at $27,852 in Q2 2026, and the average monthly payment increased to $542 this quarter, from $532 last year. Though, the average interest rate for a used vehicle fell to 11.19%, from 11.57% in the same time frame.

Refinancing continues to be a pathway for consumers

As interest rates continue to decline, consumers are exploring refinancing as a way to lower their monthly payments. In fact, the average refinance rate in Q2 2026 was 7.97%, compared to a 10.40% average original rate, which saved consumers an average of $83 a month.

Notably, credit unions offered the largest average payment savings when refinancing a vehicle, coming in at $102 in Q2 2026. Meanwhile, banks offered an average of $65 and finance companies presented a $38 difference.

“The automotive finance market continues to evolve, and refinancing can give consumers another avenue to alleviate the monthly payment for their vehicle,” Zabritski continued. “By reaching qualified borrowers with competitive finance options, lenders can help consumers save on financing costs while creating opportunities to strengthen customer relationships and build long-term loyalty.”

Additional findings for Q2 2026:

  • New leasing declined from 24.04% in Q2 2025 to 23.75% in Q2 2026, while new loans increased from 57.45% to 59.57% in the same period.
  • The average payment difference between a new vehicle loan and lease was $148 in Q2 2026.
  • Thirty-day delinquencies increased to 2.39% this quarter, from 2.32% last year and 60-day delinquencies grew to 0.90%, from 0.87% during the same time.
  • Banks continued to lead the total automotive finance market share in Q2 2026 at 27.15%, followed by captives (26.26%), and credit unions (20.38%).

To learn more, watch the entire State of the Automotive Finance Market Report: Q2 2026 presentation on demand.

About Experian

Experian is a global data and technology company, powering opportunities for people and businesses around the world. We help to redefine lending practices, uncover and prevent fraud, simplify healthcare, deliver digital marketing solutions, and gain deeper insights into the automotive market, all using our unique combination of data, analytics and platforms. We also assist millions of people to realize their financial goals and help them to save time and money.

We operate across a range of markets, from financial services to healthcare, automotive, agrifinance, insurance, and many more industry segments.

We invest in talented people and new advanced technologies to unlock the power of data and to innovate. A FTSE 100 Index company listed on the London Stock Exchange (EXPN), we have a team of 25,200 people across 33 countries. Our corporate headquarters are in Dublin, Ireland. Learn more at experianplc.com.

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