Experian's State of the Automotive Finance Market Report: Q2 2026

The automotive finance market continued to evolve in Q2 2026 as consumers adapted to higher vehicle costs, changing lender activity, and shifting vehicle preferences. Used vehicle financing increased its share of the market, while financing volumes declined year-over-year for both new and used vehicles. Hybrid vehicles continued to gain momentum, increasing their share of new vehicle financing, while electric vehicle (EV) financing returned to levels seen prior to federal tax incentives.

Key findings from the quarter include:

  • 16.8% Hybrid share of new vehicle financing (up from 12.99% YOY).
  • $83/month average savings from auto loan refinancing.
  • 2% increase in outstanding automotive loan balances YOY.
  • 1 in 3 vehicle loans now exceed 72 months in length.
  • Used vehicle financing share increased while overall financing volumes declined YOY.

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