New data from Edmunds.com showed that 2025 was a year defined by affordability struggles as new and used car prices soared, interest rates remained elevated and buyers took out the longest loan terms seen yet just to get behind the wheel.
The experts are predicting some of those same pressures will roll into 2026, but there also might be some relief ahead — at least in the used car market.
In the new car market, Edmunds is forecasting 16.3 million new-vehicle sales in the United States in 2025 and 16 million in 2026, citing such factors as easing interest rates and, after several years of rapid price escalation, new-vehicle transaction prices have leveled off which will continue to support sales. So while the new car prices will remain high, they should be stable into 2026.
Edmunds released its fourth-quarter data on Jan. 5 and it showed various records being broken including the highest percentage of new car buyers committing to $1,000 or more in monthly payments, new records for the average monthly payment and new records for the average amount financed.
“Auto financing trends in the fourth quarter underscored just how challenging 2025 was for car shoppers,” said Ivan Drury, Edmunds’ director of insights, in a statement. “Faced with persistently high vehicle prices and borrowing costs, many consumers were forced to adapt by financing larger amounts, stretching loan terms and, increasingly, taking on four-figure monthly payments. The record-setting figures we’re seeing reflect the financial strain many buyers faced throughout the year.”
