Conversations about rising auto loan balances and higher monthly payments has often centered around increasing vehicle prices and elevated interest rates; and while those factors have undoubtedly played a role, another important piece of the puzzle is the type of vehicles consumers are choosing to purchase.
According to Experian’s Automotive Consumer Trends Report: Q1 2026, consumers are continuing to opt for SUVs over other vehicle types, a trend that may be contributing to higher average loan amounts and monthly payments.
SUVs accounted for 63.5% of all new retail vehicle registrations over the last 12 months, up from 62.8% a year ago. Additionally, more than 117 million SUVs were in operation across the United States in the first quarter of 2026, making up 42.2% of the market share. At the same time, traditional passenger cars continue to fall in share, coming in at 16.5%, a decrease from 18.4% last year.
As consumers increasingly gravitate towards the larger vehicle segment, it reflects the ongoing desire for versatility, cargo capacity, and family-friendly functionality.
Electrification’s growing role in consumer purchasing behavior
Interestingly, electrified SUVs continue to gain traction, representing 27.7% of all new SUV registrations, these vehicles include battery-electric, hybrids, plug-in hybrids, and other alternative fuel types.
Diving a bit deeper, the Tesla Model Y was the market share leader for new, retail electrified SUV registrations in the last 12 months, coming in at 15.8%. Rounding out the top five were Honda CR-V (9.6%), Toyota RAV4 (7.2%), Chevrolet Trax (7.2%), and Toyota Grand Highlander (3.4%).
As model availability and familiarity with the electrification segment grows, the broader adoption of these vehicles are playing an increasingly important role in vehicle pricing and overall consumer demand.
While average loan amounts and monthly payments are being driven by a combination of factors such as financing costs and consumer purchasing behavior, data in Q1 2026 demonstrates the continued interest in SUVs. This suggests that the industry’s shift toward larger vehicles is likely playing a meaningful role in today’s financing environment.
To learn more about SUV insights, view the full Automotive Consumer Trends Report: Q1 2026 presentation.
