{"id":41253,"date":"2026-02-17T15:33:09","date_gmt":"2026-02-17T15:33:09","guid":{"rendered":"https:\/\/financialrush.com\/?p=41253"},"modified":"2026-02-17T15:33:09","modified_gmt":"2026-02-17T15:33:09","slug":"used-car-inventory-to-grow-in-2026-but-affordability-still-a-challenge","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=41253","title":{"rendered":"Used car inventory to grow in 2026 but affordability still a challenge"},"content":{"rendered":"<p> \n<\/p>\n<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\"\/><\/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\u2019t see much relief on <a href=\"https:\/\/www.cnbc.com\/2026\/02\/13\/heres-the-inflation-breakdown-for-january-2026-in-one-chart.html\">pricing<\/a>.<\/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\">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\">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\u2019re 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>\u201cThe affordable under-$20,000 vehicles are harder to find,\u201d 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 id=\"read-more-cnbc-personal-finance-coverage\" class=\"RelatedContent-header\">Read more CNBC personal finance coverage<\/h2>\n<div class=\"group\">\n<ul>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/16\/student-loan-parent-plus-forgiveness.html\">Parents with student debt face deadline to secure affordable repayment, forgiveness<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/15\/emergency-savings-401ks.html\">Secure 2.0 let employers pair emergency savings and 401(k)s, but few have done so<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/14\/home-sellers-start-getting-lower-prices-at-70-research-shows.html\">Home sellers start getting lower prices at 70, research shows \u2014 here\u2019s why<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/13\/average-tax-refund-early-irs-data.html\">Average IRS tax refund is up 10.9% so far this season, early filing data shows<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/13\/social-security-cola-2027-early-estimates.html\">Early estimates point to lower Social Security COLA for 2027<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/13\/social-security-fairness-act-lump-sum-payment-timeline.html\">Senators call for longer Social Security Fairness Act lump-sum payment timeline<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/13\/heres-the-inflation-breakdown-for-january-2026-in-one-chart.html\">Here\u2019s the inflation breakdown for January 2026 \u2014 in one chart<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/13\/average-tax-refund.html\">Average tax refund is up 22%, Bessent says \u2014 what filers can expect this season<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/13\/k-shaped-economy-middle-class-spending.html\">K-shaped economy looks like \u2018jaws of a crocodile,\u2019 economist says: Here\u2019s why<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/12\/epa-endangerment-finding-repeal.html\">How EPA \u2018endangerment finding\u2019 repeal could impact your wallet<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/12\/medical-debt-bankruptcy.html\">Medical emergencies can lead to debt and bankruptcy \u2014 even for insured Americans<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/12\/tax-return-audit-key-tax-forms.html\">Bigger tax refunds may be coming \u2014 but missing key forms could risk an audit<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/11\/social-security-fairness-act-taxes.html\">How Social Security Fairness Act payments may affect beneficiaries\u2019 taxes<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/10\/new-york-fed-credit-card-debt-tops-1point28-trillion.html\">Credit card debt tops $1.28 trillion, consistent with \u2018K-shaped\u2019 economy: NY Fed<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/10\/affordability-led-to-a-chasm-between-stock-prices-consumer-optimism.html\">How affordability led to a chasm between stock prices, consumer optimism<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2026\/02\/09\/cfpb-student-loan-complaints.html\">Student loan complaints at record high, CFPB finds, but agency omits details<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2025\/10\/01\/best-financial-advisors.html\">CNBC\u2019s Financial Advisor 100: Best financial advisors, top firms ranked<\/a><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>That\u2019s likely to remain the case even as inventory improves. \u201cYou\u2019ll see a richer mix of vehicles,\u201d Banks said. \u201cThat\u2019s just the reality of it.\u201d<\/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\u2019s higher prices may be a bit of a shock for them, Banks said.<\/p>\n<p>\u201cA lot of people will be coming into the market when they haven\u2019t been there in a long time,\u201d he said.<\/p>\n<\/div>\n<h2 id=\"used-car-financing-is-a-pain-point\" class=\"ArticleBody-subtitle\"><a id=\"headline0\"\/>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 <a href=\"https:\/\/www.cnbc.com\/2026\/02\/10\/affordability-led-to-a-chasm-between-stock-prices-consumer-optimism.html\">affordability<\/a> crunch. Many consumers are already struggling to keep up with high costs for everyday things like <a href=\"https:\/\/www.cnbc.com\/2026\/02\/02\/mortgage-delinquencies-housing-affordability.html\">housing<\/a>, 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\">$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. <a href=\"https:\/\/www.cnbc.com\/2026\/01\/28\/fed-decision-mortgage-rates-credit-cards-loans.html\">Interest rates<\/a> generally are higher compared with those that apply to <a href=\"https:\/\/www.cnbc.com\/2026\/02\/13\/interest-on-new-car-loans-tax-deductible.html\">new car loans<\/a>, 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\u2019s 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\">Bankrate\u2019s 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 <a href=\"https:\/\/www.cnbc.com\/2026\/01\/13\/car-loan-payments-top-1000-for-more-drivers.html\">monthly payment of $1,000 or more<\/a>, 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 id=\"growing-inventory-possible-discounts\" class=\"ArticleBody-subtitle\"><a id=\"headline1\"\/>Growing inventory, possible discounts<\/h2>\n<div class=\"group\">\n<p>The variety of available used vehicles reflects what\u2019s 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\">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\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>As carmakers boost the number of deals they\u2019re offering on new autos, used car shoppers may benefit as well, Drury said. \u201cWhen we start to see discounts on the new cars, it trickles down to used cars,\u201d he said.<\/p>\n<p>If it\u2019s been a while since you bought a vehicle, brush up on the best strategies for buying a used car.<strong> <\/strong><\/p>\n<p>\u201cDo your due diligence,\u201d Banks said. Some strategies he recommends:<\/p>\n<ul>\n<li>Look at certified preowned vehicles. \u201cYou may be able to get a late-model vehicle with low mileage and a warranty,\u201d 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\u2019s 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 <a href=\"https:\/\/www.cnbc.com\/2023\/10\/17\/sparse-inventory-drives-prices-for-new-used-cars-higher.html\">shop it around<\/a>. \u201cAs a consumer, leverage the availability of data,\u201d Banks said.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.cnbc.com\/2026\/02\/17\/used-car-affordability.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Hispanolistic | E+ | Getty Images Even as experts anticipate more supply in the used car market this&hellip;\n","protected":false},"author":3,"featured_media":41254,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-41253","post","type-post","status-publish","format-standard","has-post-thumbnail","category-investing","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/41253","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=41253"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/41253\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/41254"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=41253"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=41253"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=41253"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}