Car buying trends 2026: What the data shows, what people are saying and what dealers can do

The car market in 2026 is full of interesting contradictions.

Some buyers are sitting on the sidelines. Others are spending big. Digital tools are changing everything, yet the human touch still matters.

This deep dive cuts through the noise to explore the key car buying trends shaping 2026. We look at what the latest data says, what real buyers are experiencing, and how dealers can adapt. Whether you’re navigating affordability pressures, chasing premium sales, or rethinking the role of your showroom, these are the insights that matter most right now.

1. Affordability will remain a big barrier for buyers

What the data shows

New car prices remain near record highs. U.S. average transaction prices hovered around $50,326 in late 2025 according to Kelley Blue Book, while EU and UK prices are similarly elevated due to emissions regulations, taxes, and inflation.

Interest rates on car loans remain stubbornly high at around 6%+ for prime buyers and double-digit APRs for subprime, suggests Experian’s State of the Automotive Finance Market Q2 2025. Meanwhile, delinquency rates on car loans have hit a 15-year peak in the U.S based on analysis from Bankrate.

What buyers are saying

The financial strain is palpable. On online car buying forums, many buyers consistently share that they’re only purchasing out of necessity, often because their old vehicle died. A U.S. buyer summed it up well on /askcarsales on Reddit:

“Most Americans don’t buy a car often. They buy one when their car breaks down completely.”

While another frustrated buyer on /whatcarshouldIbuy put it like this:

“From a financial standpoint nothing is worth it at the moment. If you absolutely need a car just remember that you just need something safe that will get you or your family from a to b.”

And it's just your buyers on Reddit saying this, it's auto industry experts too.

What dealers can do about this car buying trend

Dealers can’t control macroeconomics, but they can control how approachable their offer feels.

That starts with putting affordability front and center, not as a footnote but as a core part of the message. Highlight low monthly payments, total cost of ownership, and reliable used or certified pre-owned inventory that feels like a smart, safe decision, not a compromise.

It also means working more closely with lenders to create clear, realistic financing pathways, especially for credit-challenged buyers who haven’t left the market entirely but need reassurance and flexibility to re-enter it.

Presentation plays a big role here. Dealers using automated inventory video and paid ad solutions are finding new ways to spotlight affordability, surfacing key value features like fuel economy, low running costs, and monthly payment estimates in under 30 seconds. At a time when every offer is being compared online, that speed and clarity can make a real difference.

The dealers that will protect volume in 2025 and beyond are the ones who:

✔ Make affordability visible and easy to understand
✔ Reframe used vehicles as smart, responsible choices by mastering used car marketing
✔ Reduce friction and anxiety for necessity-driven buyers
✔ Use automation to scale messages buyers actually care about

Because when buying a car feels financially risky, clarity and confidence become just as important as price. And how that story is told matters more than ever.

2. Luxury demand will defy the slowdown

What the data shows

While affordability is sidelining many buyers, it’s not telling the full story of the market. Luxury buyers remain resilient, with Cox Automotive reporting that high-end SUVs, trucks, and performance EVs priced above $75,000 are still selling strongly.

This disconnect is now being called a “K-shaped market”, which is a concept refers to two diverging paths:

• Wealthier buyers are continuing to upgrade or expand their garage.
• Middle and lower-income buyers are delaying purchases, downsizing, or leaving the new car market entirely.

In plain terms the market is rising for the wealthy, but falling for everyone else - a bit like the arms of the letter “K”. It’s one of the clearest examples of how car buying trends are diverging based on income and market confidence.

What the automotive industry is saying

Speaking to CNBC recently, Cox Automotive senior economist Charlie Chesbrough backed up the data: 

“We have a different vehicle buyer today than we had just a few years ago. The key takeaway here is that we’re seeing the average buyer here is much more affluent.”

What dealers can do about this car buying trend

In a K-shaped market, the biggest mistake is assuming demand is soft across the board. It isn’t. While affordability pressures are squeezing large parts of the market, premium buyers are still active and in many cases, upgrading.

That means dealers shouldn’t neglect the luxury and high-spec end of their inventory. Premium vehicles deserve premium treatment, stronger imagery, sharper positioning, and messaging that emphasizes performance, technology, lifestyle, and ease — not just price.

One dealership that has demonstrated this well is Jan Nygaard AS, a premium retailer of BMW and MINI vehicles in Denmark. By integrating AI-powered inventory videos and imagery with Phyron, they enhanced their presentation, increased buyer engagement, and reduced content production costs by 88 percent (see the full case study here).

This gave their premium vehicles the standout treatment they deserved, through imagery like the example below.

At the same time, success depends on separating audiences. Value-driven buyers need reassurance around affordability and reliability, while affluent buyers want confidence, status, and convenience. Blending those messages weakens both.

The dealers performing best in this environment are the ones who:

✔ Double down on visibility for premium and high-margin vehicles
✔ Segment marketing by buyer profile and price band
✔ Use automation to scale tailored messaging without adding operational strain

In short, as the market splits, so should your strategy. Ignoring the premium segment means leaving money on the table, especially at a time when fewer buyers are carrying the market but those who are can spend.

3. If your dealership doesn’t move online you risk becoming invisible

What the data shows

According to a recent survey by Snapchat, nearly half of Gen Z buyers have already purchased a vehicle entirely online. And for these younger buyers, that shift isn’t just about convenience, it’s often a necessity. As one college student posted on /car Reddit:

“I want to get a used car instead of a new one because I’m a broke college student. But mom refuses to let me look on Facebook Marketplace. She told me dealership only. I’m also busy with class and work that I don’t really have time to go or my mom is busy. Is there any like online stuff I can look at to just start looking at what I want?”

But it’s not just the young that are driving this car buying trend. Across all age groups and as far back as 2018, research by Adtaxi suggested that 86% of buyers were starting their buying journey online before even setting foot in a dealership. Fast forward to 2025 and some are taking their online research to epic proportions. Just check out this guy on r/UsedCars Reddit:

“You also need to figure out which cars (chose three different cars) you want and become an expert in them. When I was shopping I kept everything I was considering in a spreadsheet and made an estimated expected cost per mile for its remaining life. It helped me eliminate cars that were very overpriced relative to its age and mileage. At its peak the spreadsheet had over five hundred entries.”

But the digital shift isn’t just coming from consumers, major players are accelerating it too. Amazon has already partnered with Hyundai to let shoppers browse and purchase vehicles directly on its platform.

And in late 2025, Reuters reported that Ford had joined them. The message is clear, if your dealership isn’t visible and usable online, you risk becoming invisible.

What buyers are saying

Dealers know this shift to digital is happening,  but there’s evidence that they’re struggling to meet buyers where they are and get the best out of social platforms, as this car dealer on r/askcarsales lamented:

“I’ve only tried posting about 20 used cars on Facebook Marketplace with a ton of bites but only one person actually came in.”

While others are dealers on the same  r/askcarsales forum are frustrated with outdated internal systems that make communication clunky:

“Emails get lost and with our CRM/work email setup there is a limit on how large files can be when sending. It’s a hassle and archaic.”

What dealers can do about this car buying trend

Digital retailing is no longer a future investment. It's a current requirement. If your online experience doesn’t inspire trust, clarity, and ease, many buyers won’t bother walking through your doors at all.

To stay visible and competitive, dealerships must treat their digital presence as seriously as their physical one. That means:

✔ Treating your website like your showroom

Inventory listings should be clean, up to date, and accurate. Pricing, incentives, financing options, and vehicle specs must be clearly visible. No “call for price,” no gimmicks. Transparency builds trust and prevents drop-offs.

Visual content matters too - high-quality inventory videos and enhanced stills can dramatically improve engagement and conversions. Tools like Phyron can help dealers scale that content production efficiently.

✔ Responding fast, with the right tools

Buyers expect a response to digital inquiries within hours, not days. That may require dedicated digital BDC teams, live chat, automated follow-ups, or AI-enhanced communication. Slow or clunky processes make the buyer feel forgotten.

Some forward-thinking retailers, like Henrys Cars in the UK, are already using AI-powered WhatsApp automation to deliver instant, accurate replies that convert interest into sales. Even outside business hours (see the full case study here).

✔ Offering real digital convenience

This includes but isn't limited too:

• Remote trade-in valuations
• Online financing applications
• Virtual walkarounds or test drives
• Curbside pickup or home delivery options

✔ Meeting buyers where they are

Many shoppers don’t start on your website. They’re scrolling on TikTok, Facebook, Instagram, or watching YouTube. Dealerships that show up with relevant, high-quality ads and inventory content in those spaces gain a crucial edge. Our Paid Ads Guide 2026 offers tips on how to turn social into a high-performing lead channel.

4. The role of the salesperson is evolving

What the data shows

While digital tools now dominate the early stages of car buying, the data also shows that human interaction remains essential. Especially at key decision points, such as switching to an EV.

According to the EY Mobility Consumer Index, which surveyed over 15,000 consumers across 20 countries:

• 61% still prefer to complete their purchase in person at a dealership
• 66% want to physically experience the vehicle before buying
• 67% of EV skeptics prefer to conduct their research through a dealership salesperson
• 75% of EV skeptics want to experience an EV in person before buying (compared to 66% overall)

As Randy Miller of EY put it:

“People are still looking for the human interaction… They want to look someone in the eye when they shake their hand and pick up the keys.”

This marks a shift in the salesperson’s role, from gatekeeper of information to guide through complexity.

Buyers are no longer walking in to ask “What’s in stock?” or “What’s the price?” as increasingly, they already know that. What they now seek from salespeople is trust, reassurance, and tailored education, especially when navigating unfamiliar ground like EVs.

What buyers are saying

Buyers today are more informed - and more intentional - about who they want to do business with. While many remain cautious of old-school sales tactics, they also go out of their way to praise salespeople who get it right.

One Toronto based first-time buyer posting in r/askTo described their ideal experience like this:

“He never forced me to do anything… he just kindly and patiently answered all of my annoying questions. When I went in for a test drive, he was very open and honest… just having a lovely chat with me rather than lying or exaggerating to sell the car.”

While another buyer in the same thread appreciated a dealership that took a transparent, volume-based approach:

“One salesman said they try to make money on the volume of stock they sell, so their cars aren’t marked up stupidly—and the salesmen weren’t too pushy, which I’ve had issues with in the past.”

In a world where buyers expect clarity, respect, and space to decide, these kinds of interactions stand out. And they’re often what turns a one-time purchase into long-term loyalty.

What dealers can do about this car buying trend

The strongest dealerships are investing in a new kind of salesperson. One who complements the digital journey, rather than competing with it.

That means moving away from aggressive scripts and toward advisory relationships, especially in scenarios like:

✔ Helping first-time EV buyers understand charging, range, and running costs
✔ Breaking down the real differences between financing options
✔ Supporting necessity-driven buyers with empathy, not just efficiency

To thrive in 2026, dealers should focus on:

✔ Hiring and training for product expertise and emotional intelligence
✔ Aligning incentives to customer satisfaction and lifetime value, not just finance metrics
✔ Giving salespeople digital tools that let them meet the buyer wherever they are. In store, online, or somewhere in between

As one newly hired salesperson in r/CarSalesTraining described after building their own quote generator and AI-powered inventory assistant:

“Most of the tools the dealership provides are outdated or nonexistent—so I started building my own.”

In this hybrid model, salespeople aren’t becoming obsolete. They’re becoming more important, but only if they evolve into trusted, tech-enabled advisors rather than deal closers. It could make you the most successful car salesperson out there, as marketing legend Rory Sutherland explains:

The key takeaways for dealers

• Affordability is squeezing the mass market
  
  Many buyers are only entering the market out of necessity, with price sensitivity, interest rates, and credit anxiety at all-time highs. Dealers need to make affordability clear, visible, and low-friction to avoid losing these buyers entirely.

• Luxury demand is still going strong, but from fewer buyers
  
  The market is splitting. While volume may be down overall, premium and high-spec vehicles are still moving. Dealers must tailor strategies to attract high-income customers while keeping mass-market offerings competitive and accessible.

• Online experience is now the first impression
  
  Buyers of all ages are doing deep research, comparing quotes, and narrowing down options before stepping foot on the lot, if they do at all. A dealership’s website, pricing transparency, and response time are now mission-critical.

• The salesperson’s role has evolved, not disappeared
  
  In a digital-first world, buyers still want human reassurance, product knowledge, and help navigating complex decisions (especially around EVs). But they’ll walk away from old-school tactics. Today’s best salespeople are adapting to this car buying trend as advisors, not closers.

• Hybrid is the future
  
  Buyers want both the convenience of online tools and the trust of in-person interactions. Dealerships that connect both sides of the experience - and remove friction along the way - will earn the most loyalty. This hybrid model is at the heart of the car buying trends shaping 2026 and beyond.

The car buying trends shaping 2026 show a market that is splitting, digitizing, and evolving. Dealers who adapt to these trends — not resist them — will protect margin, increase efficiency, and stay visible in a hybrid future.