Used Car Market Predictions for 2026….
From the January 2, 2026 edition of the Car Dealership Guy newsletter (which is very interesting for those of us in the used car business…):
Used car inventory: After years of thin off-lease supply due to COVID-era new car production shortages, 2026 will bring an estimated ~400,000 additional newer used vehicles back into the market.
Used car pricing: The average used vehicle transaction price is hovering near what it was last year (~$25,700). But several key segments, including SUVs, pickup trucks, and hybrids continue to fall by hundreds of dollars through the Winter months.
Dealer profitability: Both of these conditions could continue to pressure the bottom line. From Q3 2024 to Q3 2025 (the latest data available), gross profit per used vehicle retailed dropped 9.2% to $1,306 as margins tighten on the variable side.
