What’s the used car market going to look like in...

Market Developments

Curiosity Charges

“Most individuals don’t purchase a automotive with money,” EpicVIN tells us. “They purchase a month-to-month fee.”

Rates of interest immediately have an effect on that fee. Decrease rates of interest usually improve demand within the automotive market. Increased rates of interest make patrons pickier and automobiles sit longer, particularly higher-priced ones, the agency notes.

In December, the Federal Reserve lower rates of interest by 1 / 4 level for the third time in 2025. That impacts shoppers as banks usually base their mortgage charges off the Fed price. If the Fed cuts its charges, banks usually observe swimsuit with their mortgage merchandise.

The final time the Fed met, some officers expressed dissent a few lower. The Fed meets once more on January 28 to debate charges.

New Automotive Reductions

If automakers supply extra incentives to purchase new automobiles, count on costs to say no on 1- to 3-year-old automobiles, EpicVIN says. What impacts incentives? How automobiles are at the moment promoting.

In response to Kelley Blue Ebook, the brand new automotive business is predicted to see a 1.8% gross sales improve for 2025 over 2024. Not all the pieces is so rosy, although. For instance, each Mazda and Subaru reported 2025 gross sales declines of three.3% and three.6%, respectively. Toyota and Chevrolet, although, skilled will increase of 8% and 4.7%.

As normally, if a automotive’s sizzling, count on to pay a premium. If a automotive’s not, that’s the place the offers are normally had.

Off-Lease Returns and Fleet Automobiles

EpicVIN expects the used automotive provide to enhance slowly in 2026. Why? Extra off-lease automobiles and fleet automobiles hitting the market.

Leasing, total, has elevated in recent times, with 9.6% annual development the previous three years, based on Kentley Insights. Extra automobiles on lease ultimately results in extra automobiles coming off lease.

The end result: Anticipate a rising used automotive stock. Whereas this will likely sound good–and it definitely is for specific automobiles–it doesn’t all the time repair the scarcity of automobiles within the sub-$15,000 bracket, EpicVIN cautions.

Insurance coverage and Price of Possession

Is that deal on-line too good to be true? Presumably.

From 2019 to 2024, the common price to insure a automotive rose 33%, based on Forbes.

EpicVIN additionally warns that tech-heavy automobiles usually price extra to restore than extra primary fashions–and automobiles are continuously getting an increasing number of complicated.

One thing that would assist with buy-in: Automobiles which are dearer to restore usually see increased charges of depreciation than people who price much less to repair.

EVs and Hybrids

EpicVIN notes that comparable automobiles may see completely different value trajectories. Let’s check out full-size EV vehicles.

Ford abruptly shut down its manufacturing of the F-150 Lightning in December, refocusing its efforts on ICE and hybrid fashions. It has created uncertainty about components, service and resale values for the as soon as extremely touted truck.

Its opponents, such because the Chevrolet Silverado EV, Rivian R1T and Tesla Cybertruck, may see values rise due to that uncertainty.

EpicVIN provides that they count on the values of hybrids to stay robust, “as a result of they’re simple to personal and don’t depend upon charging,” they are saying.

EpicVIN Value Outlook for 2026

Flat to Barely Down Values

Whereas 2025 noticed a modest improve in new automotive demand, EpicVIN expects the general used automotive market to remain regular. They suggest holding a watch out for offers on slow-selling trims and colours. Moreover, a clear, well-documented automotive will promote for greater than a automotive with an unknown historical past.

The Finest Offers? Fashions Individuals Overlook

Provide and demand. That’s the identify of the used automotive recreation.

If a selected automotive is plentiful and never desired, values go down. EpicVIN predicts that some sedans and smaller automobiles can be amongst these seeing lowering values. Moreover, hold a watch out for high-maintenance luxurious fashions–assuming you may abdomen the restore payments.

What Received’t Be a Discount? Good, Inexpensive Automobiles

EpicVIN doesn’t count on offers on the decrease finish of the used automotive market. “Beneath-$15K automobiles with clear historical past will nonetheless be scarce,” EpicVIN says. “The ‘good, low cost automotive’ will hold promoting shortly.”

Do Your Homework

With automobiles having clear histories being a sizzling commodity, EpicVIN warns to be vigilant about unexpected points. The most effective deal is usually the one with the fewest surprises, so do your analysis.

6 Hidden Dangers

What dangers may very well be hiding in that used automotive? EpicVIN recommends doing a license plate lookup or ordering a full VIN report, each of which may uncover points earlier than a purchaser even does a check drive.

What can that report discover? The next six pitfalls:

• Branded titles: These embrace salvage, rebuilt, buyback, lemon branding.
• Accident historical past: The studies may point out extra harm than the itemizing mentions.
• Mileage gaps or odd jumps: Watch out as there may be some shenanigans with the odometer or unexplained downtime for the automotive.
• A number of fast proprietor adjustments: Quick flips ought to elevate a crimson flag, EpicVIN says.
• Out-of-state title strikes: Whereas generally regular, it may be an indication of one thing suspicious.
• Open remembers: May point out poor consideration to upkeep by the previous proprietor, which is very troublesome on newer tech-heavy automobiles.

When to Purchase in 2026

While you purchase issues. Most years observe seasonal patterns. Perceive them to unlock the very best deal.

• January-February: Slower site visitors after the vacations typically makes negotiations simpler on patrons.
• March-April: Many individuals obtain tax refunds throughout this time, growing demand in used automobiles whereas clear automobiles are inclined to promote quicker.
• Late summer season: With fall on the horizon, it generally softens demand, making for extra favorable negotiations for patrons.
• Yr-end: “Offers can seem,” EpicVIN says, “however the very best stock might already be gone.”

7 Steps to Shopping for Higher

EpicVIN recommends adhering to the next seven steps so as. They are saying it saves not solely cash however time.

1. Choose two to 3 fashions, not only one. This provides you extra alternatives for a deal.
2. Test insurance coverage charges. It’s the expense that you just hold paying lengthy after the acquisition.
3. Ask for the VIN earlier than something. Merely put, if the vendor gained’t share it, transfer on.
4. Then run a VIN historical past examine to catch any points, reminiscent of title issues, accident historical past, mileage, variety of house owners and remembers.
5. Get a pre-purchase inspection from an unbiased mechanic. It’s good to have a second set eyes on a automotive, regardless of how eagle-eyed you might be.
6. If you happen to’re financing, examine your mortgage presents by not solely the month-to-month fee however all the price.
7. Don’t be afraid to stroll away. EpicVIN says, “The most effective patrons don’t chase dangerous automobiles.”

Finally, the very best recommendation is to purchase the very best instance you may afford. And you’ll be certain that by doing all of your homework.

EpicVIN doesn’t count on the used automotive market to vary dramatically in 2026, with pricing barely softening and decisions bettering, however the very best automobiles will proceed to be in demand.