New EV sales dropped 28% in Q1 2026, per Electrek's analysis of Cox Automotive data. Used EV sales went up 12%. Buyer views on used hybrid listings jumped 17% in a single month. That's from CarGurus' Q1 2026 market report, published April 7. The market has been sorting itself out, and where it's landing right now is hybrids.
What changed last fall
Two things happened in fall 2025 that are showing up in Q1 data. The federal EV tax credit — both for new vehicles and used EVs — expired in September 2025. At the same time, tariffs have driven new car prices up 10.4% year over year, per Kelley Blue Book's April 2026 analysis. Average new vehicle transaction prices now sit above $49,000.
Losing a $7,500 credit while sticker prices climb $5,000 is roughly $12,500 worth of reasons to rethink. Buyers did. Hybrid consideration went up 16% for new vehicles and 17% for used, per CarGurus.
Hybrids occupy a specific gap. Forty to 51 miles per gallon without charging infrastructure or range anxiety. The 2026 Toyota Camry Hybrid — now the only Camry Toyota sells — gets 51 MPG combined versus roughly 32 MPG for a comparable midsize gas sedan. No charger required, no route planning, no meaningful battery concern at realistic mileage levels.
The supply picture
| Category | 30-day view change | Days supply | Federal incentive |
|---|---|---|---|
| New hybrid | +16% | 47 days | None |
| Used hybrid | +17% | Below average | None |
| New EV | +31% | Softening | None (expired Sep 2025) |
| Used EV | +40% | Softening | None (expired Sep 2025) |
| Gas (new, avg) | Flat | 73 days | None |
Source: CarGurus Q1 2026 "Car Buyers Are Changing Lanes," April 7, 2026
Hybrid supply at 47 days is the tightest segment in the new car market, which averages 73 days overall. Toyota's lowest-inventory nameplates are almost entirely hybrid: Grand Highlander Hybrid, Sienna, RAV4, and Corolla Cross, per CarGurus.
The used hybrid market is moving too. Nearly new used car sales overall jumped 24% in Q1, per CarGurus, as buyers priced out of new vehicles flood into recent-model-year inventory. Interest in used hybrids is up while inventory isn't keeping pace. That's not a buyer's market.
If you're waiting for used hybrid prices to drop, you're waiting on the wrong side of the supply curve.
Models worth targeting
Toyota Camry Hybrid (2023-2025): Toyota eliminated the gas-only Camry for 2026, the first time in the model's history that Toyota ended gas-only production. A used 2023 or 2024 Camry Hybrid isn't a premium variant anymore — it's what the model became. Fifty-one MPG combined, broadly established long-term reliability data, strong parts availability. The 2024 refreshed the interior and updated the driver-assist suite. Used examples absorbing more demand as new supply shifts entirely to hybrid.
Toyota RAV4 Hybrid: Among Toyota's lowest-supply models per CarGurus data. Dealers pricing one correctly know it. Listings don't linger. If you're targeting a RAV4 Hybrid, set an alert and have financing pre-arranged. Being ready to move matters more in this segment than slow-playing for a discount.
Honda Accord Hybrid (10th gen, 2018-2022): Forty-four MPG combined. Less supply pressure than the Camrys, and it typically trades at a modest discount — Toyota's reliability reputation carries a resale premium. The 10th generation is the established sweet spot: enough miles to have absorbed meaningful depreciation, well within the window where reliability data is solid. 2020-2022 examples balance age, technology, and price well.
FAQ
Are used hybrids cheaper than used EVs right now?
Not straightforwardly. Non-Tesla used EVs average around $23,738, per Recurrent's Q1 2026 data, with 44% of transactions under $25,000. A used Camry Hybrid in comparable condition typically lands higher. Hybrids hold residual value better. The used EV discount reflects off-lease supply flooding the market, not an inherent value advantage. Used hybrids deliver fuel economy close to EVs without the charging dependency, which is why demand is holding up while EV prices soften.
What year used hybrid should I buy?
For Camry Hybrid and RAV4 Hybrid: 2022-2024 models balance depreciation and technology well. Modern driver-assist features arrived in force around 2022, and residual values have shifted since the 2026 Camry went hybrid-only. For the Accord Hybrid: 2020-2022 10th generation examples trade at lower premiums than comparable Toyotas and are a reliable second look if the Toyota pipeline is thin.
Do used hybrid batteries actually fail?
Toyota hybrid batteries are warranted for 10 years or 150,000 miles in California-emission states, which most states have adopted or matched. Real-world data from high-mileage Prius and Camry Hybrid owners consistently shows gradual degradation, not sudden failure. Verify warranty transfer status with a VIN check before buying. A unit still under the original powertrain warranty is worth more than the price gap between it and older examples often reflects.
Used hybrid inventory moves faster than most segments right now. CarScout scouts track listings as they appear and send you an alert when something matching your target year, trim, and price lands. If you're watching for a specific RAV4 Hybrid or Camry Hybrid, you don't need to refresh listings manually. Plans start at $5/week at usecarscout.com.