Prices keep going north, not south. . .
By Gary S. Vasilash
Apparently vehicle affordability is like the weather, with lots of talk and not much else.
According to the just-released JD Power and GlobalData report for February 2026 new vehicle sales, the average retail transaction price is expected to be $46,303, a 2.7% increase over last year.
That’s a 2.6% bump for EV prices (to $46,528) and a 3% bump for the rest (to $46,097).
Isn’t that a move in the wrong direction for consumers?
What is surprising is that discounts for EVs in February are expected to average $10,356—and that’s a reduction of $1,664 from February 2025.
So that would mean that last February there were an average $12,020 in discounts and potentially a $7,500 tax credit. With all that on offer, on the order of $19,500, it would seem that lots of EVs would have been sold in February 2025, yet the firms note that for this February EV sales will be off only 1.8% from last year, to 6.6% of the market.
Didn’t some auto execs last February look at those numbers and consider that maybe the consumer demand wasn’t turning out the way they thought it would? Yes, the elimination of the tax credit was a huge blow, but when big discounts aren’t getting it done, you’ve got to wonder.
And here’s something that speaks to the K-shaped economy that is now manifest in the U.S.
Speaking to the issue of the decline in EV sales, Tyson Jominy, senior vp of OEM customer success at JD Power, said:
“The pullback is concentrated in the mass market, where EV share contracted to 1.9% from 4.0% a year ago. In contrast, EVs represent over 26.4% of premium sales year to date – a figure which includes direct-to-consumer brands – and only 5 percentage points below last year’s pace.”
Apparently the premium space has plenty of EV sales, comparatively speaking.
Another affordability-related finding is that even though the average interest rate for new-vehicle loans is 6.72%, a decline of 0.31 percentage points from February 2025 the average monthly finance payments are up $32, to $811.
Also up in the finance space is the percentage of loans that are greater than or equal to 84 months (a.k.a. seven years): 12.7%, an increase of 5 percentage points from February 2025.
Again, a move in the wrong direction if affordability is what everyone would like to achieve.
Makes you think “everyone” isn’t all that interested in achieving it.












