Car shoppers get more used choices and easing financing in 2026, Edmunds says

Summary (continued)

Edmunds said consumers who plan to shop for a car in 2026 may see an advantage in both the vehicles available and the terms offered by lenders, after several years in which shortages and high borrowing costs made buying harder. The company attributed the shift to changes in used-car supply, trade-in values and loan pricing that can affect how much leverage buyers have at dealerships.

In its outlook for the year, Edmunds described five trends it expects shoppers to encounter, including more used-car inventory, strong trade-in equity, and a growing number of used electric vehicles entering the market as leases expire. The advice is aimed at improving what shoppers pay not just for the vehicle itself, but also for financing—an area Edmunds said has begun to ease.

One of the trends Edmunds highlighted is that “holdout shoppers” who delayed purchases are returning, which it said is boosting used-car selection. Edmunds said the deferred buying of earlier years reduced the number of used vehicles available for sale, but it expects more consumers to trade in their vehicles as 2026 moves forward. With more supply, Edmunds said pricing pressure can shift back toward dealers, which can allow buyers to compare listings of the same model across dealerships.

Edmunds tied that increased inventory to a practical negotiating approach: spend time comparing examples of the same vehicle across dealerships and use price differences as leverage, the company said. Edmunds also said that identifying an overpriced listing becomes easier as shoppers can check more alternatives at once.

Trade-in values, meanwhile, are still unusually strong, according to Edmunds. “One bright spot for owners who have held off on a recent purchase will be equity for their trade-in,” said Ivan Drury, director of insights at Edmunds. Edmunds said that, based on its transaction data, 7-year-old vehicles traded in during 2025 were valued at an average of $14,400—described as a 72% increase compared with 2019, when 7-year-old vehicles were appraised at $8,400.

Edmunds said shoppers can use that equity to reduce what they finance after buying, potentially lowering monthly payments. It advised getting multiple trade-in or purchase appraisals before visiting a dealership, using online pricing tools and local dealers, and bringing those figures to help prevent lowball offers and capture the full value of a trade-in.

Edmunds also said the used-car market will be reshaped by electric vehicles coming off leases. It said electric vehicle leasing surged in 2023, and those vehicles are now entering the used market as leases end. Edmunds said the result in 2026 will be a larger number of used EVs for sale, many with relatively low mileage and discounts compared with new EVs.

For shoppers interested in electric vehicles but wary of new-car prices, Edmunds said used EVs could be a “best entry point” in years. The company also recommended looking for certified pre-owned, or CPO, electric vehicles, saying dealerships inspect these cars and that CPO typically includes an extended warranty.

Alongside the changes in supply, Edmunds said financing costs are finally easing after high interest rates added thousands of dollars to the cost of buying during the prior two years. It said that as rates begin to decline and automakers compete for buyers in a softer sales environment, loan offers are improving and incentive-driven financing is returning.

Edmunds said buyers should compare all financing options and get preapproved through a bank or credit union to establish a baseline. It said dealers may then be willing to beat that baseline with manufacturer-backed promotions, and that even small interest-rate reductions can meaningfully affect total costs over the life of a loan.

Finally, Edmunds said shoppers should pay extra attention to loan length and how the terms affect the overall cost. It said as prices remain high, more buyers are stretching payments across 72-month or even 84-month loans, which can lower the monthly bill but raise the total amount paid. Edmunds also warned this can keep borrowers “upside down” longer—when the amount owed on a loan exceeds the vehicle’s worth.

To counter what it described as loan-term creep, Edmunds said shoppers should focus on total cost rather than monthly payments alone. It said a shorter loan may cost more each month but save money overall and help shorten the time they remain upside down on the loan. Edmunds concluded that, taken together, the trends it described create a market that rewards shoppers who compare vehicles and financing carefully.