Hybrids Surge as EVs Lose Share Amid High Gas Prices and Financing Shifts — Experian plc

Event summary

Hybrids accounted for 16.80% of new vehicle financing in Q2 2026, up from 12.99% in Q2 2025, while EV market share declined from 9.21% to 8.15%.
Average monthly payment for new hybrid vehicle loans was $646, lower than EVs ($692) and gasoline vehicles ($721).
Average loan amount for new vehicles rose $1,715 year-over-year to $43,610, with average monthly payment increasing $16 to $765.
Refinancing rates dropped to 7.97% in Q2 2026, saving consumers an average of $83 a month.
Thirty-day delinquencies increased to 2.39% from 2.32% year-over-year.

The big picture

The shift toward hybrids reflects a broader consumer response to elevated fuel costs and affordability pressures, compounded by the expiration of EV tax credits. The automotive finance market is evolving, with refinancing emerging as a key strategy for consumers to manage rising loan amounts and monthly payments. Banks and credit unions are positioning to capitalize on this trend, offering competitive rates to strengthen customer loyalty.

What we're watching

Hybrid Adoption: How sustained high gas prices will affect hybrid market share growth versus EV recovery.
Financing Trends: Whether lower interest rates and refinancing options will continue to ease consumer payment burdens.
Delinquency Risks: The pace at which rising delinquencies could signal broader financial stress among vehicle owners.