Hybrid Vehicles Dominate Auto Finance in Q2 2026
In the second quarter of 2026, hybrid vehicles accounted for a growing share of new-vehicle financing, reaching 16.8%, up from 13% in Q2 2025. This increase was driven by lower monthly payments compared to fully electric and internal combustion engine models, as well as OEM incentives that helped reduce interest rates on loans. According to Experian Automotive's report, the average hybrid loan payment was $646 per month—lower than EVs ($692) or ICE vehicles ($721). Toyota led in financing volume for hybrids with its Camry model at No. 1, followed by RAV4 and Grand Highlander. Honda also had strong representation among top-financed hybrids. The shift toward hybrids was influenced by the loss of EV tax incentives, high gas prices, and geopolitical tensions affecting energy markets. Captive finance companies played a significant role in financing these vehicles due to their access to OEM incentives.
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Topics: Auto Finance Experian Automotive Report Hybrid Vehicles Vehicle Sales