Used Car Market Trends for 2026

The used car market changes every year. It reflects consumer sentiment and is shaped by various economic factors, policy, social trends, and technological advancements. For dealerships, it’s important to understand where the market is headed going into 2026, as staying informed is the key to navigating challenges and capitalizing on opportunities.

Used car market trends we saw in 2025 

Before we jump into our 2026 predictions, lets set the scene by recapping the trends we observed in 2025 across the used car market: 

1. Pricing stabilized post-pandemic volatility 
2. Prices were high for both new and used models¹ 
3. EVs sold faster than average²
4. There was modest growth in used car sales across the year, returning the market to a status quo.³

Predictions for the 2026 Used Car Market

1. Reduced growth 

Experts are expecting to see slightly reduced used car sales compared to 2025, with the full market down roughly 1% YoY. Inventory will remain tight in 2026 for used vehicles, and demand will be consistent because consumers will seek lower cost options amid affordability concerns.¹ 

2. Reduced volatility but elevated prices

The normalization of the used car market will also bring with it pricing stability. With the pandemic came a range of price spikes and dips, but prices largely stabilized in 2025 and that is expected to continue through 2026. Particular models, like trucks and SUVs, that have high demand and less supply will continue to hold their values. And, in terms of how tariffs will play a role, it is likely they will have ripple effects into the used car market, creating some pressure that keeps prices up.² But for dealers, overall this year is looking like one of steady pricing rather than continuous sharp swings. 

3.  The K-Shaped Economy Is Creating Two Distinct Buyer Groups

The broader economic picture continues to show what analysts call a K-shaped divide, where different segments of buyers are experiencing very different realities.

• Luxury Buyers:  Higher-income consumers remain active in the market, especially in premium and luxury segments. According to industry insights, luxury buyers continue trading within their segments rather than switching to lower-priced brands, signalling a strong retention of brand loyalty.
• Budget-Conscious Buyers: On the other end of the spectrum, affordability pressures are pushing price-sensitive buyers toward more affordable used vehicles that deliver lower monthly payments. Rising prices in the new-car market have made value-oriented used options more appealing, with shoppers prioritizing cost savings and practical transportation solutions.⁵

4. Limited Growth in Entry-Level Car Segments

While demand for affordable vehicles is rising, actual growth in entry-level segments may remain limited due to broader economic headwinds, including slow job growth and caution among younger or first-time buyers.¹ Demand for entry-level used cars remains strong in theory, but income uncertainty and financing conditions continue to temper expansion in these segments. This dynamic could keep growth modest even where interest among buyers is high.

5. A Surge of Used EVs

A growing number of off-lease EVs are expected to enter the used car market as lease returns increase. Off-lease EV returns are projected to exceed 300,000 units in 2026 representing more than a 200% year-over-year increase.⁶ This influx of used EV inventory offers dealers an opportunity to attract value-focused buyers who want electrification at more accessible prices.

6. AI will become more present in Dealer Operations

In 2026, artificial intelligence will continue expanding its role in dealership operations, moving from experimental use to everyday tools for pricing, engagement, and sales optimization.

Industry tech outlooks emphasize the increasing use of AI-powered retailing tools that help dealers streamline processes, personalize customer interactions, and refine pricing strategies based on real-time data. These technologies are not just emerging innovations, but practical tools that can improve efficiency and competitiveness.⁷ 

Partner with ACV Auctions in 2026

As the used car market evolves in 2026, dealers that secure the right inventory and operate efficiently will be best positioned to win. Partnering with ACV Auctions gives you access to a nationwide online auction platform with used vehicles and detailed condition reports on every listing. Each vehicle is individually inspected by a trained vehicle inspector, so you can buy with confidence and make smarter inventory decisions. Learn more about how ACV Auctions can help your dealership grow in 2026.

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Sources

1. Cox Automotive. 2025. “Fragmented Reality: 5 Forces to Shape the Auto Industry in 2026.” December 17. Retrieved December 23, 2025. https://www.coxautoinc.com/insights-hub/fragmented-reality-5-forces-to-shape-the-auto-industry-in-2026/ 
2. Drury, Ivan. 2025. “3-Year-Old Used Vehicle Prices Surpass $30,000 for the First Time Since 2023 as Supply Pressures Mount.” Edmunds. May 22. Retrieved December 20, 2025. https://www.edmunds.com/car-news/q1-2025-used-car-report.html 
3. White, Emmet. 2025. “The Average New Car Payment Has Reached Almost $750 a Month, New Data Shows.” Road and Track. December 15. Retrieved December 20, 2025. https://www.roadandtrack.com/news/a69729120/average-new-car-payment-750-dollars-per-month-q3-2025/
4. J.D. Power. 2024. “Used-Vehicle Market About to Get Complicated as Returning EV Lease Volumes on Track to Spike in 2026.” J.D. Power. November 7. Retrieved December 20, 2025. https://www.jdpower.com/business/resources/e-vision-intelligence-report-october-2024 
5. Caldwell, Jessica. 2025. “Three Trends That Will Shape the U.S. Auto Market in 2026.” Edmunds. December 11. Retrieved December 23, 2025. https://www.edmunds.com/car-news/trends-that-will-shape-2026-car-market-edmunds-insights.html
6. Savage, Ash. 2025. “A 200%+ spike in off-lease EV supply is nearing—here’s how dealers are preparing.” CarDealershipGuy. November 4. Retrieved December 23, 2025. https://news.dealershipguy.com/p/a-200-spike-in-off-lease-ev-supply-is-nearing-here-s-how-dealers-are-preparing-2025-11-04
7. Autotrader. 2025. “Top Tech Trends To Watch in 2026.” Autotrader. December 20. Retrieved December 23, 2025. https://b2b.autotrader.com/resources/top-automotive-retail-trends-to-watch-2026/