The downward trend is mostly being driven by the obvious: High interest rates, persistent inflation, rising gas prices, and tariffs. It's all pushing monthly payments sky-high. Meanwhile, the average cost of a new vehicle is about $50,000 right now. That's way out of reach for the middle-class buyers who used to make up the backbone of the industry. And it looks like it's probably going to stay that way for a while.

Hybrids look like one of the only real bright spots right now. Sales have climbed more than 9% and now make up for over 14% of new vehicle purchases. Fully electric vehicles are moving in the opposite direction. EV sales have dropped more than a third for the year to date, taking their market share down to just 5%. They make up many of the worst-selling vehicles of 2026. That growing divide is part of a much larger disconnect going on between what automakers want and what drivers want. Right now, it really seems to come down to reliable transportation that comes with lower fuel costs and no major lifestyle changes or premium price tags. Clearly, for many, that's a hybrid.