Used Cars: What to Expect in 2026?

Used cars are set to get a bit pricier in 2026, but not by much. This news comes from a well-known auto data company. They predict that the prices of used cars will go up by about 2% by the end of the year. This is a small increase compared to the big jumps seen during the pandemic. For the past two years, prices have been going up slowly, around 0. 4% each year. But before that, in 2022 and 2023, prices dropped a lot after a huge spike during the pandemic. In 2021, used car prices shot up by 46. 6%, and in 2020, they rose by 14. 2%. These increases were much higher than usual.Even though prices are stabilizing, they are still higher than before the pandemic. The prices people pay at dealerships usually follow the trends in wholesale prices, but they haven't dropped as fast in recent years. On average, the price index for used cars has increased by about 2% at the end of each year since 1998. The big jumps in 2021 and 2022 are exceptions to this trend. Prices can change a lot from month to month because of different factors, like the time of year. There are some good signs for the auto market in 2026. Loan rates for new and used cars have gone down to the lowest they've been in a year. Plus, people will soon get their tax refunds, which could boost demand for cars.