According to Experian’s 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.”
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. Hybrids continue to gain ground amid elevated gas prices, according to a new Experian Automotive report.
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.
“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.”
