Car shopping trends and tips for 2026 from Edmunds

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This article was published 14/01/2026 (248 days ago), so information in it may no longer be current.

In recent years, a shortage of vehicles, rising prices, and high borrowing costs have made it challenging for some people to purchase a new or used vehicle. Thankfully, the automotive market is shifting in ways that could be beneficial if you’re planning to buy a vehicle in the next few months. The auto experts at Edmunds have identified five car shopping trends that you can expect to see in 2026 and have advice on how to take advantage of them to get the best deal.

More holdout shoppers are returning, boosting used car selection

Many consumers delayed buying a new car over the past several years due to high prices, limited selection and expensive loans. Those deferred purchases resulted in fewer used vehicles being available for sale. But we’re seeing that trend diminish in 2026. More consumers are finally trading in their used vehicles, which is increasing supply and variety in the secondhand market.

That growing inventory can work in your favor. With more used vehicles on the market, pricing pressure shifts back toward dealers, especially on mainstream models. Instead of feeling forced to accept the only car on the lot, you can compare multiple examples of the same model across dealerships and use those price differences as leverage. The more time you spend comparing listings, the easier it becomes to spot an overpriced car and negotiate a good deal.

Trade-in values remain unusually strong

“One bright spot for owners who have held off on a recent purchase will be equity for their trade-in,” says Ivan Drury, director of insights at Edmunds. According to Edmunds transaction data, 7-year-old vehicles that were traded in during 2025 were valued at an average of $14,400. That’s a 72% increase compared to 2019, when 7-year-old vehicles were appraised at just $8,400.

You can use that equity as a negotiating tool. Before visiting a dealership, get multiple trade-in or purchase appraisals from online pricing tools and local dealers. Bringing those numbers with you helps prevent lowball offers and ensures you capture your car’s full value. More money for your old car means you’ll finance less and have lower monthly payments, which is especially important as prices remain elevated.

A surge of off-lease EVs is reshaping the used market

Electric vehicle leasing surged in 2023, and those EVs are now entering the used market as their leases come to an end. The result is a big increase in used EVs for sale in 2026. Many of them will have relatively low miles and significant discounts compared with new EVs.

For shoppers curious about EVs but wary of new-car prices, this is one of the best entry points in years. You can also look for a certified pre-owned EV if you’re concerned about durability. A certified pre-owned vehicle, or CPO, has been thoroughly inspected by the dealership and typically comes with an extended warranty. With more used EVs for sale, pricing is becoming more competitive.

Financing costs are finally easing

High interest rates added thousands of dollars to the cost of buying a car over the last two years. As rates begin to decline and automakers compete for buyers in a softer sales environment, loan offers are improving, and incentive-driven financing is making a comeback. More favorable financing means more of your monthly payment goes to paying for the vehicle instead of interest.

Be sure to compare all available financing options. Getting preapproved by a bank or credit union gives you a baseline, and dealers may be willing to beat it with manufacturer-backed promotions. Even a small interest rate reduction can translate into meaningful savings over the life of a loan, making it one of the most critical areas to shop carefully.

Longer loans and changing vehicle content require extra scrutiny

As prices remain high, more buyers are stretching payments across 72-month or even 84-month loans. While a longer loan lowers the monthly bill, it increases the total amount paid and keeps you upside down longer on a loan, which occurs when you owe more on your loan than the vehicle is actually worth.

To combat the loan-term creep, focus on total cost, not just the monthly payment. A shorter loan may cost more each month but will save money overall. It also helps shorten the time you will be upside down on your loan.

Edmunds says

Together, these trends create a market that rewards savvy shoppers. Rising used-car supply and strong trade-in values can give you more options and enhanced negotiating power. You can use these opportunities to find the right car at the right price in today’s evolving market.

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This story was provided to The Associated Press by the automotive website Edmunds. Josh Jacquot is a contributor at Edmunds.