Used car shoppers may find relief as the market shifts in 2026. After years of inflated prices and scarce choices, supplies are finally rebounding. An influx of off-lease vehicles is set to hit dealers, offering budget-conscious buyers more options than they’ve had since before the pandemic. Prices are stabilizing, and certain segments, like electric vehicles (EVs), could see significant price drops.
5. Off-Lease Vehicle Flood
A surge of nearly-new options hits dealership lots, reversing years of inventory drought.
Over the next year, expect to see a flood of approximately 400,000 off-lease vehicles hitting the used car market, according to Edmunds forecasting. This surge reverses years of inventory shortage following pandemic-era leasing dips. The influx is poised to ease the affordability gap, offering budget-conscious buyers a chance to snag near-new vehicles without breaking the bank.
A family needing a reliable SUV who has been holding off due to sky-high prices might finally discover a nearly-new model at a significantly reduced price. These opportunities mean increased access to reliable transportation without crippling debt. With off-lease vehicles flooding dealerships, 2026 might just be your year for an automotive upgrade.
4. Price Stabilization with Segment Variations
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Overall used car prices level out, but trucks hold value while sedans and EVs drop.
Used car prices are leveling out, with the average transaction hitting around $25,700, according to Carfax data. The wild fluctuations seen in recent years are calming down, offering some predictability for buyers. However, not all segments are created equal. Trucks and SUVs are holding their value, driven by consistent demand, while sedans and EVs could see price dips of about 1-10% based on ACV Auctions and CarEdge forecasting.
3. The Truck Caveat
If you’re shopping for a used vehicle, trucks are still commanding premium prices due to their popularity. But if you’re eyeing a sedan or an EV, you might find some bargains as supply increases. Multiple factors influence these trends, including the number of off-lease vehicles hitting the market and the expiration of certain subsidies.
2. Electric Vehicle Market Spikes Prices
Used EV availability surges 200% as federal incentives expire, driving prices down further.
Over 300,000 off-lease electric vehicles are expected to flood the used car market, a 200% year-over-year increase that finally gives you a shot at EV ownership without the new-car sticker shock, according to ACV Auctions and Edmunds insights. As federal tax credits expire by late 2026, expect further price declines of 5-10% per CarEdge forecasting, making them even more attractive.
1. Turbulence Inbound
However, there’s some market turbulence ahead. A market share shift from 7.5% to 6% suggests challenges, possibly due to range anxiety or charging infrastructure concerns. Still, if you’re hunting for a budget-friendly road trip option, the growing appeal of used EVs offers lower fuel costs—just be mindful of range and battery condition. As one industry observer noted, “Used car inventory is starting to climb out of its post-pandemic hole.”
