Growing numbers of U.S. car buyers are opting for mainstream models when trading in a premium compact car (42%), midsize SUV (32%) or compact SUV (30%), according to a new first half report from JD Power.

Analysts say high defection rates signal a deepening structural shift being driven by high prices and a narrowing experience gap between luxury and mass-market vehicles.

“The result is a measurable migration,” the report states. “Premium owners are not necessarily leaving the new-vehicle market when trading in. Instead, many are simply choosing a different class of vehicle. Affordability is shaping what they buy rather than whether they buy.”

Premium vehicles accounted for 13.3% of new-vehicle sales in the first half of 2026, down from 13.8% a year earlier and the lowest market share since 2020, according to JD Power’s latest Automotive OEM Intelligence Report. The emotional satisfaction gap between premium and mainstream brands has narrowed to just 29 points on a 1,000-point scale — down from 66 points in 2008 — as mainstream models have increasingly matched premium vehicles in infotainment, driver assistance, styling and amenities.

Defection is most pronounced among younger and lower-income buyers: Gen Z shows the highest defection rates, while households earning more than $200,000 are the most likely to remain in the premium segment. The average transaction price for the mainstream midsize SUV purchased by defectors was $51,500, compared with $70,600 for the premium vehicle traded in.

Premium brands entered mid-2026 with days supply near 67 — well above the roughly 56 days recorded for mainstream brands — and incentive spending near 7.3% of MSRP, compared with approximately 6% for mainstream brands, analysts note.

Read the full report at JD Power