Car shopping trends and tips for 2026 from Edmunds

In recent years, a shortage of vehicles, rising prices, and high borrowing costs have made it challenging for many consumers to purchase a new or used vehicle. However, the automotive market is now shifting in ways that could benefit those planning to buy a vehicle in the coming months. Auto experts at Edmunds have identified five key car shopping trends emerging in 2026 that could help buyers secure better deals.

The market is seeing a significant return of “holdout shoppers” – consumers who delayed vehicle purchases during the pandemic and post-pandemic period. This delayed purchasing behavior previously resulted in fewer used vehicles entering the market. Now, as these consumers finally trade in their vehicles, the secondhand market is experiencing increased supply and variety.

This growing inventory creates a more favorable environment for buyers. With more used vehicles available, pricing pressure is shifting back toward dealers, especially for mainstream models. Shoppers now have the luxury of comparing multiple examples of the same model across dealerships and using price differences as leverage in negotiations. Market analysts suggest that thorough research and comparison shopping can significantly improve a buyer’s position when finalizing a deal.

“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, seven-year-old vehicles traded in during 2025 were valued at an average of $14,400 – a remarkable 72% increase compared to 2019, when similar vehicles were appraised at just $8,400.

This elevated trade-in value provides substantial negotiating power. Industry experts recommend obtaining multiple trade-in or purchase appraisals from online pricing tools and local dealers before visiting a dealership. Armed with these figures, buyers can prevent lowball offers and ensure they capture their vehicle’s full value. More equity from a trade-in means less financing required and lower monthly payments – particularly important as vehicle prices remain elevated across the board.

The electric vehicle market is experiencing its own transformation. A surge of off-lease EVs is entering the used market in 2026, following a leasing boom in 2023. Many of these vehicles have relatively low mileage and are available at significant discounts compared to new EVs.

This influx represents an ideal opportunity for consumers curious about electric vehicles but hesitant about new-car prices. For those concerned about durability, certified pre-owned (CPO) EVs offer an attractive option. These vehicles undergo thorough dealer inspections and typically include extended warranty coverage. With increased competition in the used EV segment, pricing is becoming more favorable for buyers across various models and brands.

After years of challenging financing conditions, car shoppers are finally seeing relief as interest rates begin to decline. Automakers, facing a softer sales environment, are competing more aggressively for buyers through improved loan offers and the return of incentive-driven financing. These more favorable terms mean more of each monthly payment goes toward the vehicle itself rather than interest.

Financial experts stress the importance of comparing all available financing options. Getting pre-approved by a bank or credit union provides a baseline, which dealers may be motivated to beat with manufacturer-backed promotions. Even a modest interest rate reduction can translate into substantial savings over the life of a loan, making financing one of the most critical areas for careful shopping.

Despite these positive trends, some concerning patterns persist. As vehicle prices remain high, more buyers are extending payments across 72-month or even 84-month loans. While longer terms reduce monthly payments, they increase the total amount paid and extend the period during which a buyer owes more than the vehicle is worth – a condition known as being “upside down” on a loan.

To counter this trend, financial advisors recommend focusing on total cost rather than monthly payment. A shorter loan may cost more each month but saves money overall and reduces the time a buyer remains in a negative equity position.

Collectively, these trends create a market that rewards informed, strategic shoppers. Rising used-car supply, strong trade-in values, and improving financing options provide enhanced negotiating power and more choices. By understanding these dynamics, consumers can navigate today’s evolving automotive market more effectively to find the right vehicle at the right price.