Used Cars: What to Expect in 2026?

Used car prices are expected to see a modest increase in 2026, according to a leading auto data company. The forecast predicts a 2% rise by the end of the year, a small change compared to the significant jumps observed during the pandemic.

Recent Trends in Used Car Prices

• 2024-2025: Prices have been rising gradually, around 0.4% annually.
• 2022-2023: Prices dropped significantly after a massive spike during the pandemic.
• 2020: Used car prices surged by 14.2%.
• 2021: Prices skyrocketed by 46.6%, the highest increase in recent history.

Post-Pandemic Stabilization

Despite the stabilization, prices remain higher than pre-pandemic levels. Dealership prices have not decreased as rapidly as wholesale prices in recent years.

Historical Price Trends

• Since 1998, the average annual increase in the used car price index has been around 2%.
• The 2021 and 2022 spikes were exceptions to this trend.
• Prices can fluctuate monthly due to factors like seasonal demand.

Positive Signs for 2026

• Loan rates for new and used cars have dropped to the lowest in a year.
• Tax refunds could boost demand for vehicles.