Used automobile stock to develop in 2026 however affordability nonetheless a problem

Whilst consultants anticipate extra provide within the used automobile market this 12 months, shoppers in all probability will not see a lot aid on pricing.

Whereas supplier inventories proceed to slowly enhance, the higher-cost mixture of automobiles hitting the used automobile market — and wholesale costs that ticked increased in January — might restrict how a lot that added provide interprets into cheaper automobiles.

Though the shopper worth index reveals that costs for used automobiles have been down 1.8% in January from December and a couple of% from a 12 months earlier, they’re easing off file highs. The typical worth of a used automobile as much as 8 years outdated was $30,202 in 2025, up 27.6% from $23,668 in 2020, in keeping with J.D. Energy.

“The inexpensive under-$20,000 automobiles are tougher to seek out,” mentioned Jonathan Banks, a vp with J.D. Energy.

That is more likely to stay the case at the same time as stock improves. “You will see a richer mixture of automobiles,” Banks mentioned. “That is simply the truth of it.”

The share of under-$20,000 automobiles was 30% in 2025, down from 53% in 2019, in keeping with J.D. Energy.

As a result of shoppers have been hanging on to their automobiles for longer, at this time’s increased costs could also be a little bit of a shock for them, Banks mentioned.

“Lots of people will likely be coming into the market once they have not been there in a very long time,” he mentioned.

Though used automobile costs have eased, they continue to be elevated in opposition to a backdrop of a broader family affordability crunch. Many shoppers are already struggling to maintain up with excessive prices for on a regular basis issues like housing, groceries and insurance coverage premiums.

In contrast with the typical worth paid for a brand new automobile — $49,191, in keeping with Kelley Blue Guide — the used automobile market would be the extra fascinating possibility.

Nonetheless, the price of financing a used automobile can also be a ache level. Rates of interest typically are increased in contrast with people who apply to new automobile loans, which may be particularly pricey for shoppers with poor credit score.

For credit score scores starting from 501 to 600, the typical rate of interest for used automobile loans was 19% within the third quarter of 2025, in keeping with Experian. That is in contrast with a mean of seven.43% for shoppers with a rating of 781 to 850.

The typical quantity financed for a used car in January was $29,364 and the typical rate of interest was 10.5%, in keeping with Edmunds. 

If that quantity have been financed at that rate of interest over 72 months — the typical is 69.7 months — the month-to-month fee could be $551, and the curiosity paid over the total lifetime of the mortgage could be $10,339, in keeping with Bankrate’s auto mortgage calculator. That may push the overall quantity paid for the automobile to $39,703.

Individually, a small however rising share of shoppers are taking out used automobile loans with a month-to-month fee of $1,000 or extra, in keeping with Edmunds. Within the last quarter of 2025, 6.3% of consumers dedicated to a fee of that quantity, in contrast with 6.1% within the third quarter and 5.4% within the fourth quarter of 2024.

The number of obtainable used automobiles displays what’s been bought within the new automobile market over time. Shoppers have most popular SUVs and vans over sedans for years. Final 12 months, sedans accounted for simply 17% of the brand new automobile market, in keeping with Edmunds. In 2015, that share was above 40%.

A larger variety of automobiles are coming off of three-year leases this 12 months in contrast with final 12 months on account of increased lease quantity in 2023 than in 2022, mentioned Ivan Drury, director of insights for Edmunds. Moreover, a rising variety of fleet automobiles — for instance, rental automobiles — ought to hit the used automobile market this 12 months as that offer additionally continues recovering from pandemic-era disruptions.

As carmakers enhance the variety of offers they’re providing on new autos, used automobile customers might profit as effectively, Drury mentioned. “Once we begin to see reductions on the brand new automobiles, it trickles right down to used automobiles,” he mentioned.

If it has been some time since you acquire a car, brush up on one of the best methods for getting a used automobile.

“Do your due diligence,” Banks mentioned. Some methods he recommends:

• Have a look at licensed preowned automobiles. “You might be able to get a late-model car with low mileage and a guaranty,” he mentioned.

• Be sure to belief the supplier and have absolutely vetted the automobile you wish to purchase, he mentioned. You’ll be able to verify a automobile’s historical past on websites like Carfax or AutoCheck for a charge starting from about $10 to $45.

• Analysis how a lot your trade-in is value and store it round. “As a shopper, leverage the provision of knowledge,” Banks mentioned.