If you’re planning to buy a new or used vehicle this spring, understanding the current state of the car market is essential. With average new car prices hovering near $50,000, used car interest rates exceeding 10%, and wildly different inventory levels across brands and regions, the landscape is anything but simple.

Here’s a comprehensive breakdown of the new and used car markets for spring 2026, including where the deals are, which brands give you the most leverage, and whether now is the right time to buy or sell.

The New Car Market: Neutral Territory with Pockets of Opportunity

Average Transaction Prices Near $50,000

The average transaction price for a new car is now almost $50,000. That staggering figure has a ripple effect across the entire market. Fewer consumers can afford to participate, and those who can are increasingly willing to stretch their budgets. In fact, 20% of new car buyers are now taking on monthly payments of $1,000 or more—a number that becomes even more alarming when you factor in insurance costs that can add another $300 to $500 per month.

The result? Automakers are essentially appealing to a shrinking pool of buyers who can actually afford these vehicles, while a growing number of consumers are being priced out of the new car market entirely.

What Market Day Supply Tells You About Negotiating Power

One of the most important metrics to understand before walking into a dealership is market day supply. Currently, the nationwide new car market day supply sits at 98 days, meaning it would take more than three months to sell all available inventory at the current sales pace. Dealers have roughly 2.7 million new cars in stock.

A 98-day supply is relatively high compared to the pandemic era when inventory was severely constrained. Generally speaking, the higher the day supply, the more leverage you have as a buyer.

But there’s a nuance: not all brands are on the same page.

Brand-by-Brand Inventory Breakdown

The differences in inventory across brands are dramatic, and they directly impact how much room you have to negotiate:

• Low inventory (seller’s advantage): Lexus (28 days), Toyota (33 days), Land Rover, Honda, and Acura have tight supply. Getting a deal at MSRP with no dealer add-ons could be considered a win.
• High inventory (buyer’s advantage): Volkswagen (143 days), Chrysler, Mitsubishi, Lincoln, Jeep, and Ram are sitting on significant stock. Discounts of 10–15% off MSRP are realistic for these brands.
• Best mix of value and inventory: Mazda, Ford, Nissan, Kia, and Hyundai offer a sweet spot—decent inventory levels combined with manufacturer incentives and negotiable pricing.

What constitutes a “great deal” is entirely relative. A great deal on a Lexus might mean paying MSRP with no added fees, while a great deal on a Volkswagen could mean thousands off the sticker price. Especially for the slowest-selling car in America.

Regional Differences Matter Too

Inventory levels also vary significantly by state. For example, Maine has a 114-day supply of new cars, while Utah has just a 43-day supply. Your local market dynamics—including regional demand, weather patterns, and dealer competition—will influence the deals available to you.

Where the Real Deals Are: Leftover Inventory and Subvented Rates

There’s a silver lining in the spring 2026 new car market. Industry expectations point toward lower overall sales, which should translate to more deals for consumers. Additionally, there are still 580,000 leftover 2025 model year vehicles sitting on dealer lots.

With the Federal Reserve holding steady on interest rates, manufacturers are stepping in with subvented financing rates—think 0%, 0.9%, and 1.9% APR—to move aging inventory. Keep in mind, however, that these promotional rates typically require top-tier credit. As your credit score drops, the rates climb. Here’s what it means to be a well-qualified buyer.

Leasing is also making a comeback. About a quarter of new car customers are now choosing to lease, drawn by advertised payments of $250–$350 per month as a more affordable alternative to buying. The best lease deals of the month include zero-down lease deals, even for a few luxury models.

New Car Market Verdict: “Meh” to Buyer’s Market

Overall, the spring 2026 new car market lands in neutral-to-fair territory. It’s neither a strong buyer’s market nor a seller’s market. However, it tilts decidedly toward a buyer’s market for leftover 2025 vehicles, where dealers and manufacturers are eager to clear inventory. For current model year vehicles from popular brands, you’ll need to work harder to secure a meaningful discount.

The Used Car Market: Tighter Supply and Rising Prices

Prices Still Elevated at $26,000 Average

The average transaction price for a used car in 2026 is $26,000. Used car prices are up 18% over the past five years and 4% year-over-year. While that’s roughly half the cost of a new car, don’t be fooled into thinking used vehicles are affordable. The average interest rate on a used car loan is over 10% APR, which significantly inflates the total cost of ownership and monthly payments. For used car buyers with bad credit, APRs easily top 15%.

Used Car Day Supply: A Tighter Market

The used car market has a 49-day supply of inventory—considerably tighter than the 98-day supply on the new car side. While that’s 5% higher than last year, it’s still lower than the 2022–2024 period. In short, used car inventory remains tight.

The K-Shaped Used Car Market

One of the most fascinating dynamics in today’s used car market is the K-shaped divergence in vehicle values:

• Compact cars are declining in value the most, which is welcome news for budget-conscious buyers.
• Luxury vehicles are actually appreciating, which flips the traditional assumption that luxury cars depreciate faster than economy models.

Why is this happening? Many consumers who are priced out of the new luxury car market are turning to pre-owned luxury vehicles instead, driving up demand and values in that segment.

Used Car Quality Is at a Low Point

The composition of available used car inventory should give buyers pause:

• The average mileage on a used car for sale is over 70,000 miles
• There’s only a 38-day supply of vehicles priced under $15,000
• A growing number of used vehicles at auction are repossessions
• Dealers are spending less on reconditioning before putting vehicles up for sale

The quality of used cars available today may be at its lowest level ever in terms of mileage, vehicle condition, and dealer preparation. This makes getting a pre-purchase inspection before buying any used car absolutely essential.

Spring Seasonality: Prices Are Heading Up

Spring is historically when used car values appreciate, and 2026 is no exception. Auction data shows that used car values have already started appreciating 2–3 weeks earlier than normal. This trend is driven by dealers stocking up on inventory ahead of tax return season and the warmer weather that brings more buyers to dealerships.

This has two important implications:

1. If you’re buying a used car, you may pay more now than you would in the summer or fall.
2. If you’re selling or trading in a vehicle, now is the time. Your trade-in is likely worth more in the spring than it will be later in the year.

Used Car Market Verdict: Leans Toward Seller’s Market

Unlike the neutral new car market, the used car market tilts toward a seller’s market for spring 2026. Tight inventory, rising prices, seasonal appreciation, and high financing costs all work against buyers. If you must purchase a used vehicle this spring, do your homework on local pricing, get pre-approved for financing to avoid dealer markup on rates, and always get an independent inspection.

Key Takeaways for Spring 2026 Car Buyers

• New car market is neutral overall, but a buyer’s market for leftover 2025 models with 580,000 still available
• Used car market leans toward sellers, with prices up 18% over five years and spring appreciation already underway
• Brand matters enormously—Volkswagen at 143 days supply vs. Lexus at 28 days means completely different negotiating dynamics
• Location matters—state-by-state inventory varies from 43 to 114+ days supply
• Interest rates remain high—look for manufacturer-subvented rates on new cars; expect 10%+ on used car loans
• Used car quality is declining—higher mileage, more repos, less reconditioning means a pre-purchase inspection is non-negotiable
• Selling or trading in? Spring is your best window as dealers build inventory for the buying season

Whether you’re buying new or used this spring, the single most important thing you can do is research your specific market. National averages tell one story, but your local brand inventory, regional pricing, and available incentives tell another. Arm yourself with data before you set foot on a dealer lot, and you’ll be in a far stronger position to negotiate.