For people planning to buy a new or used car in the next few months, Edmunds said the 2026 market could look different than the past stretch of limited selection, high prices and expensive borrowing. In a report provided to The Associated Press, Edmunds described five trends that it expects shoppers to be able to use as leverage, from more used-car choices to stronger trade-in equity and financing terms that the company said are starting to improve.
The first trend Edmunds highlighted is a shift in “holdout” buying behavior, which the company tied to the earlier period of high prices and limited inventory. Edmunds said more consumers are returning and trading in their vehicles in 2026, which it said is increasing both the supply and variety of used cars available for sale.
Edmunds said that growing used inventory can benefit shoppers because it changes pricing pressure—particularly on mainstream models. Instead of feeling limited to a single option on a dealer lot, the company said buyers can compare multiple listings for the same model across dealerships and use the price differences as negotiation leverage, with the payoff rising as shoppers spend more time checking available options.
Another point in Edmunds’ advice focuses on trade-ins. “One bright spot for owners who have held off on a recent purchase will be equity for their trade-in,” Ivan Drury, director of insights at Edmunds, said in the report. Edmunds said its transaction data showed that 7-year-old vehicles traded in during 2025 were valued at an average of $14,400, which Edmunds described as a 72% increase compared with 2019, when it said 7-year-old vehicles were appraised at $8,400.
Edmunds said shoppers can use that trade-in equity in negotiations by gathering multiple appraisals before visiting a dealership, including from online pricing tools and local dealers. The company said bringing those numbers can help prevent lowball trade-in offers, and it said higher trade-in proceeds can reduce the amount financed—an outcome that Edmunds said may matter to buyers when monthly payments remain a priority.
Edmunds also said the used EV market is being reshaped by the leasing cycle. The company said electric vehicle leasing surged in 2023 and that those leased EVs are now entering the used market as leases end, producing what it described as “a big increase” in used EVs for sale in 2026. Edmunds said many of those vehicles are likely to have relatively low miles and significant discounts compared with new EVs, and it pointed shoppers who are cautious about new-car prices to used EVs as an “entry point” it described as one of the best in years.
For shoppers concerned about durability, Edmunds said they can also look for certified pre-owned vehicles. The company said a certified pre-owned vehicle (CPO) has been inspected by the dealership and typically comes with an extended warranty, and it said that as used EV supply rises, pricing is becoming more competitive.
On the financing side, Edmunds said costs that were pushed up by high interest rates over the past two years are beginning to ease. The company said that as loan rates decline and automakers compete for buyers in a softer sales environment, loan offers are improving and incentive-driven financing is returning. Edmunds said that more favorable financing means a larger share of monthly payment goes toward the vehicle cost instead of interest.
Even with that improving picture, Edmunds advised shoppers to compare financing options. The company said getting preapproved through a bank or credit union gives a baseline, and it said dealers may be willing to beat that figure with manufacturer-backed promotions. Edmunds added that even a small interest-rate reduction can translate into meaningful savings over the life of a loan, calling it one of the most critical areas where buyers should shop carefully.
Finally, Edmunds warned that longer loan terms and changes in vehicle pricing can create additional risk. The company said that as prices remain high, more buyers are stretching payments across 72-month loans and, in some cases, 84-month loans. While Edmunds said a longer term can reduce the monthly payment, it also said it increases the total amount paid and can keep a borrower “upside down” longer—when the buyer owes more than the vehicle is worth.
To address what Edmunds described as loan-term creep, it said buyers should focus on the total cost rather than only the monthly payment. Edmunds said a shorter loan may cost more each month but can save money overall and help shorten the time a buyer will be underwater.
Edmunds concluded that these trends together create a market that rewards what it described as careful planning and comparison. With more used-car supply and strong trade-in values, Edmunds said shoppers may have more options and more negotiating power as they look for a vehicle that fits their budget in a changing market.