{"id":25719,"date":"2026-02-18T10:36:52","date_gmt":"2026-02-18T10:36:52","guid":{"rendered":"https:\/\/finderica.com\/?p=25719"},"modified":"2026-02-18T10:36:52","modified_gmt":"2026-02-18T10:36:52","slug":"used-car-inventory-to-grow-in-2026-but-affordability-still-a-challenge","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=25719","title":{"rendered":"Used car inventory to grow in 2026 but affordability still a challenge"},"content":{"rendered":"<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108265842\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Hispanolistic | E+ | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Even as experts anticipate more supply in the used car market this year, consumers probably won&#8217;t see much relief on pricing.<\/p>\n<p>While dealer inventories continue to slowly improve, the higher-cost mix of vehicles hitting the used car market \u2014 and <a href=\"https:\/\/www.coxautoinc.com\/insights-hub\/manheim-used-vehicle-value-index-january-2026-trends\/\" target=\"_blank\" rel=\"noopener\">wholesale prices that ticked higher<\/a> in January \u2014 could limit how much that added supply translates into cheaper cars.<\/p>\n<p>Although the <a href=\"https:\/\/www.bls.gov\/news.release\/cpi.nr0.htm\" target=\"_blank\" rel=\"noopener\">consumer price index<\/a> shows that prices for used cars were down 1.8% in January from December and 2% from a year earlier, they&#8217;re easing off record highs.<strong> <\/strong>The average price of a used car up to 8 years old was $30,202 in 2025, up 27.6% from $23,668 in 2020, according to J.D. Power.<\/p>\n<p>&#8220;The affordable under-$20,000 vehicles are harder to find,&#8221; said Jonathan Banks, a vice president with J.D. Power.<\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"RelatedContent-relatedContent\" id=\"RegularArticle-RelatedContent-1\">\n<div class=\"RelatedContent-container\">\n<div class=\"RelatedContent-nonCollapsibleContent\">\n<h2 class=\"RelatedContent-header\">Read more CNBC personal finance coverage<\/h2>\n<div class=\"group\">\n<ul>\n<li>Parents with student debt face deadline to secure affordable repayment, forgiveness<\/li>\n<li>Secure 2.0 let employers pair emergency savings and 401(k)s, but few have done so<\/li>\n<li>Home sellers start getting lower prices at 70, research shows \u2014 here&#8217;s why<\/li>\n<li>Average IRS tax refund is up 10.9% so far this season, early filing data shows<\/li>\n<li>Early estimates point to lower Social Security COLA for 2027<\/li>\n<li>Senators call for longer Social Security Fairness Act lump-sum payment timeline<\/li>\n<li>Here&#8217;s the inflation breakdown for January 2026 \u2014 in one chart<\/li>\n<li>Average tax refund is up 22%, Bessent says \u2014 what filers can expect this season<\/li>\n<li>K-shaped economy looks like &#8216;jaws of a crocodile,&#8217; economist says: Here&#8217;s why<\/li>\n<li>How EPA &#8216;endangerment finding&#8217; repeal could impact your wallet<\/li>\n<li>Medical emergencies can lead to debt and bankruptcy \u2014 even for insured Americans<\/li>\n<li>Bigger tax refunds may be coming \u2014 but missing key forms could risk an audit<\/li>\n<li>How Social Security Fairness Act payments may affect beneficiaries&#8217; taxes<\/li>\n<li>Credit card debt tops $1.28 trillion, consistent with &#8216;K-shaped&#8217; economy: NY Fed<\/li>\n<li>How affordability led to a chasm between stock prices, consumer optimism<\/li>\n<li>Student loan complaints at record high, CFPB finds, but agency omits details<\/li>\n<li>CNBC&#8217;s Financial Advisor 100: Best financial advisors, top firms ranked<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>That&#8217;s likely to remain the case even as inventory improves. &#8220;You&#8217;ll see a richer mix of vehicles,&#8221; Banks said. &#8220;That&#8217;s just the reality of it.&#8221;<\/p>\n<p>The share of under-$20,000 cars was 30% in 2025, down from 53% in 2019, according to J.D. Power.<\/p>\n<p>Because consumers have been hanging on to their cars for longer, today&#8217;s higher prices may be a bit of a shock for them, Banks said.<\/p>\n<p>&#8220;A lot of people will be coming into the market when they haven&#8217;t been there in a long time,&#8221; he said.<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\"><a id=\"headline0\"><\/a>Used car financing is a pain point<\/h2>\n<div class=\"group\">\n<p>Although used car prices have eased, they remain elevated against a backdrop of a broader household affordability crunch. Many consumers are already struggling to keep up with high costs for everyday things like housing, groceries and insurance premiums.<\/p>\n<p>Compared with the average price paid for a new car \u2014 <a href=\"https:\/\/www.coxautoinc.com\/insights-hub\/jan-2026-atp-report\/\" target=\"_blank\" rel=\"noopener\">$49,191, according to Kelley Blue Book<\/a> \u2014 the used car market may be the more desirable option.<\/p>\n<p>However, the cost of financing a used car is also a pain point. Interest rates generally are higher compared with those that apply to new car loans, which can be especially costly for consumers with poor credit. <\/p>\n<p>For credit scores ranging from 501 to 600, the average interest rate for used car loans was 19% in the third quarter of 2025, according to Experian. That&#8217;s compared with an average of 7.43% for consumers with a score of 781 to 850.<\/p>\n<\/div>\n<div class=\"group\">\n<p>The average amount financed for a used vehicle in January was $29,364 and the average interest rate was 10.5%, according to Edmunds.\u00a0<\/p>\n<p>If that amount were financed at that interest rate over 72 months \u2014 the average is 69.7 months \u2014 the monthly payment would be $551, and the interest paid over the full life of the loan would be $10,339, according to <a href=\"https:\/\/www.bankrate.com\/loans\/auto-loans\/auto-loan-calculator\/\" target=\"_blank\" rel=\"noopener\">Bankrate&#8217;s auto loan calculator<\/a>. That would push the total amount paid for the car to $39,703.<\/p>\n<p>Separately, a small but growing share of consumers are taking out used car loans with a monthly payment of $1,000 or more, according to Edmunds. In the final quarter of 2025, 6.3% of buyers committed to a payment of that amount, compared with 6.1% in the third quarter and 5.4% in the fourth quarter of 2024.<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\"><a id=\"headline1\"><\/a>Growing inventory, possible discounts<\/h2>\n<div class=\"group\">\n<p>The variety of available used vehicles reflects what&#8217;s been purchased in the new car market over time. Consumers have preferred SUVs and trucks over sedans for years. Last year, sedans accounted for just 17% of the new car market, <a href=\"https:\/\/www.edmunds.com\/car-news\/trends-that-will-shape-2026-car-market-edmunds-insights.html\" target=\"_blank\" rel=\"noopener\">according to Edmunds<\/a>. In 2015, that share was above 40%.<\/p>\n<p>A greater number of vehicles are coming off of three-year leases this year compared with last year due to higher lease volume in 2023 than in 2022, said Ivan Drury, director of insights for Edmunds. Additionally, a growing number of fleet vehicles \u2014 for example, rental cars \u2014 should hit the used car market this year as that supply also continues recovering from pandemic-era disruptions.<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108264540\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108264540\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000403738\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><span class=\"InlineVideo-videoButton\"><\/span><span><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>As carmakers boost the number of deals they&#8217;re offering on new autos, used car shoppers may benefit as well, Drury said. &#8220;When we start to see discounts on the new cars, it trickles down to used cars,&#8221; he said.<\/p>\n<p>If it&#8217;s been a while since you bought a vehicle, brush up on the best strategies for buying a used car.<strong> <\/strong><\/p>\n<p>&#8220;Do your due diligence,&#8221; Banks said. Some strategies he recommends:<\/p>\n<ul>\n<li>Look at certified preowned vehicles. &#8220;You may be able to get a late-model vehicle with low mileage and a warranty,&#8221; he said.<\/li>\n<\/ul>\n<ul>\n<li>Make sure you trust the dealer and have fully vetted the car you want to buy, he said. You can check a car&#8217;s history on sites like Carfax or AutoCheck\u00a0for\u00a0a fee ranging from about $10 to $45.<\/li>\n<\/ul>\n<ul>\n<li>Research how much your trade-in is worth and shop it around. &#8220;As a consumer, leverage the availability of data,&#8221; Banks said.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.cnbc.com\/2026\/02\/17\/used-car-affordability.html\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hispanolistic | E+ | Getty Images Even as experts anticipate more supply in the used car market this year, consumers probably won&#8217;t see much relief on pricing. While dealer inventories continue to slowly improve, the higher-cost mix of vehicles hitting the used car market \u2014 and wholesale prices that ticked higher in January \u2014 could<\/p>\n","protected":false},"author":1,"featured_media":25720,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[1418,793,859,1220,3780],"class_list":{"0":"post-25719","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-affordability","9":"tag-car","10":"tag-challenge","11":"tag-grow","12":"tag-inventory"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/25719","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25719"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/25719\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/25720"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25719"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25719"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25719"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}