auto dealer in black and red logo
MenuMENU
SearchSEARCH

August Auto Sales a Mixed Bag

An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.

August 21, 2026
Red Honda Civic hybrid sedan on two lane road with green hills in background

Honda had record U.S. hybrid sales in July at 36,000-plus units, and overall U.S. hybrid deliveries jumped high this month.

Credit:

Honda

2 min to read


Hybrid auto sales have been smoking this month as consumers look for ways to cut the cost of driving.

The market share of hybrid model sales has jumped an estimated 5 percentage points to 18% of new-vehicle retail sales, according to a JD Power-GlobalData August forecast. That’s up a dramatic 36% year-over-year as consumers face high gas prices.

The segment results would have been even stronger if not for what the market watcher called “unusually low availability” of many popular hybrids.

Still, a greater abundance of hybrid models on the market now is boosting their sales, JD Power said.

Overall retail auto sales have proved healthy this month at 1.1 million units despite high prices and monthly payments. Year-over-year, deliveries are estimated to drop about 7%, but that’s largely due to last year’s electric-vehicle sales surge ahead of the elimination of federal purchase tax credits.

JD Power forecasts the seasonally adjusted annual rate at 13 million units, down about 400,000 year-over-year.

Consumers got a little break on auto loans this month with a projected average interest rate drop of six basis points to about 6.6%, the lowest for the month of August in four years.

Still, that’s “not enough to offset the structural affordability pressures on buyers,” JD Power President of OEM Solutions Thomas King said.

Average monthly payments are forecast to be up about 4% to $812, the highest on record for an August as low trade-in equity dings buyers. About 29% of trade-ins this month have carried negative equity, JD Power data show.

LEARN MORE: California Hybrids Reach State Record

More Industry

Six men standing in front of a Ford dealership.
Industryby Hannah MitchellAugust 14, 2026

Longtime Ford Store Changes Hands

The Virginia dealership joins a small area automotive group in a one-dealership transaction, moving from one family franchisee to another.

Read More →
car in background with hand giving a thumbs up in front
Industryby Lauren LawrenceAugust 14, 2026

Auto Loan Delinquency Rates Stabilize

Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.

Read More →
Arm of mechanice reaching for car with hood open
Industryby StaffAugust 13, 2026

ASE Seeks Accurate Technician Pay, Benefits Data

New free membership trial removes cost barrier for dealerships and shops willing to contribute anonymous information to the industry data exchange.

Read More →
Ad Loading...
Photo of Dodge Durango moving down a road in sunlight
Industryby Hannah MitchellAugust 7, 2026

No Longer Worth the Price?

Mass-market auto brands are gaining ground on luxury competitors with what used to be premium features, helped along by the pressure of high vehicle prices dogging budget-conscious shoppers.

Read More →
Auto Dealer Today, Dealer Debrief, 08/06/2026, with Lauren Lawrence
Industryby Lauren LawrenceAugust 6, 2026

Dealer Debrief: Colorful Cars & BMW Backlash

In this week's debrief, host Lauren Lawrence discusses the first Slate vehicles and the BMW x Spider-Man collab that has sparked some privacy concerns.

Read More →
Headlight of silver Porsche car
Industryby Hannah MitchellJuly 31, 2026

Georgia Auto Group to Be Sold

Major U.S. player Group 1 signed an agreement to purchase the Atlanta-area stores across multiple brands from a longtime market leader.

Read More →
Ad Loading...
Auto Dealer Today, Dealer Debrief, 07/29/2026, with Lauren Lawrence
Industryby Lauren LawrenceJuly 29, 2026

Dealer Debrief: Four-Figure Loan Payments

In this week's debrief, host Lauren Lawrence discusses the rise in $1,000-plus loan payments and the factors affecting the increase.

Read More →
Photo of blue Toyota Prius parked next to a body of water with a city skyline behind it
Industryby Hannah MitchellJuly 24, 2026

July Auto Sales Simmer

Deliveries were up modestly from a year ago despite still-high prices as OEMs offered more incentives and loan rates eased somewhat.

Read More →
Front of large glass-paned, multistory office building
Industryby Hannah MitchellJuly 17, 2026

Toyota Financial Services Adds to HQ

The subsidiary says the new Texas facility is designed to foster collaboration and innovation with the aim of future growth.

Read More →
Ad Loading...
Tiny toy car falling out of jar of coins. “The $1K Payment”
Industryby Lauren LawrenceJuly 17, 2026

Four-Figure Loan Payments on the Rise

A LendingTree analysis found that location, age and credit score play a role in the rising amount of auto loan borrowers who make monthly payments of $1,000 or more.

Read More →