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Most people assume the savvy car buyer is the one who shows up knowing exactly what they want, from trim selection to paint color. They’ve done the research. They’ve made their decision. They’re ready to buy.
Here’s what the data actually shows: that buyer is often the easiest one for a dealer to work with. And not in a good way.
A new study from Cox Automotive found that only 29% of car buyers started the shopping process knowing exactly what vehicle they wanted, down from 37% in 2020. Meanwhile, buyer satisfaction with their vehicle selection hit 62%, up sharply from just 36% during the inventory crunch of 2022. Overall new-vehicle buyer satisfaction reached 76% in 2025, an all-time high.
Could ‘clueless’ car shoppers really be making better purchasing decisions in today’s car market? Let’s dig into the details.
After 43 years working in dealerships, I can tell you something most car buyers don’t realize: dealers can read a locked-in buyer from across the showroom floor.
When you walk in and announce you want a specific model in a specific trim in a specific color, you’ve handed the dealer a map to your wallet. They know you’re not going anywhere. They know the price pressure is low. And they’ll structure the deal accordingly.
The buyer who walks in open to a few different options? That buyer is harder to pin down. And that’s a good thing for your negotiation.
Flexibility signals that you have choices. Dealers respond to buyers who have choices.

The 71% of buyers who went into the process without a fixed vehicle in mind weren’t just wandering around hoping something caught their eye. They were shopping smarter.
They let needs drive the search, not brand loyalty.
Instead of starting with a model name, start with what you actually need. How many people are you hauling regularly? What’s your commute? Do you need cargo space, towing capacity, or just solid fuel economy? More and more car buyers are realizing that brand loyalty often doesn’t lead to better outcomes. CarGurus found that more than half of car shoppers consider three or more brands. Yes, reliability, safety ratings, and resale value are important, but in 2026, these attributes can be found across the market.
They cross-shopped new and used.
In 2025, 66% of buyers considered both new and used vehicles, up from 57% the year before. That matters because the used market has returned close to pre-pandemic norms — more inventory, more stable pricing — and there’s real value to be found if you’re not religiously committed to buying new.
They looked at leasing.
Among new-vehicle shoppers, 29% weighed leasing versus buying in 2025, an all-time high. Leases were typically saving buyers more than $100 per month compared to financing a purchase. If you’ve never seriously considered leasing because you “just don’t lease,” it might be worth running the numbers before you decide.
They checked the deals before falling in love with a vehicle.
Incentives shift every month. What’s well-discounted in March might be full price in June. A buyer anchored to one specific vehicle has to take whatever deal exists on that vehicle right now. A buyer open to a few options can follow the money — and find the model where the manufacturer is hungry to move inventory.
Use CarEdge’s Best Deal Hub to see what’s on sale this month. Before you shop, find dealerships known for transparent pricing and no-nonsense deals with our Car Dealer Ratings [NEW!].
None of this means you should walk into a dealership without doing your homework.
Know your budget before you know your vehicle. And know your budget as an out-the-door number, not a monthly payment. Dealers sell monthly payments because it obscures the total cost of the deal. When you know the OTD price you can afford, you can evaluate any vehicle clearly — regardless of how a dealer tries to frame it.
Use our invoice price lookup tool to understand what dealers are actually paying before you negotiate.
Once you have a few vehicles in mind, get competing quotes before you step foot on a lot. The buyer who has quotes from multiple dealers on multiple vehicles has all the leverage. The buyer committed to one car at one dealer has none.
Our Concierge team can help you run this process — getting real offers from dealers without the back-and-forth, so you can compare apples to apples and make the call that’s actually right for you.
The most satisfied car buyers are the ones who kept their options open. They consider more vehicles, compare more deals, and don’t let brand loyalty or a fixed idea of what they “should” buy get in the way of a good decision.
The market has more inventory and more incentives than it has in years. There are good deals out there right now, but they’re spread across segments and brands, and they change monthly. The buyer who’s willing to follow the data instead of a predetermined list is going to find them.Start with what you need. Set a real budget. Then use CarEdge to see what the market is offering before you decide what you want. Here’s how we can help.
New to car buying, or simply want to brush up your negotiating skills for the 2026 car market? Checkout our free guide to buying a car with confidence below:
The federal government just put nearly 100 dealership groups on notice.
On March 13, the Federal Trade Commission sent warning letters to 97 auto dealer groups across the country, telling them in plain terms: the price you advertise has to be the price customers actually pay. No hidden fees tacked on at signing. No mandatory add-ons buried in the paperwork. No prices that only apply if you use the dealer’s financing.
For anyone who has ever sat in a finance office watching a $32,000 car turn into a $38,000 car, this is not a surprise. It’s great to see the FTC finally doing something about it.
The agency’s letters flagged several specific practices it considers illegal under the FTC Act:
The FTC also pointed to active enforcement cases it already has underway against Lindsay Chevrolet, Leader Automotive Group, and Asbury Automotive Group as examples of what happens when dealers don’t clean up their act.
This is part of a broader FTC push on pricing transparency across multiple industries, but cars have long been one of the worst offenders. Anyone who has spent time at a dealership knows why.
Here’s what’s worth knowing: the behaviors the FTC is warning dealers about are exactly what CarEdge’s Dealer Transparency Index is built to measure.
Our AI agent contacts dealers on behalf of real car shoppers, collects itemized out-the-door quotes, and scores every dealer based on what they actually charge, not what they advertise. The scoring breaks down like this:
The result is a 0–100 score for every dealer in our database. Some dealerships score a perfect 100. Others are in the 20s and 30s.
The dealers at the bottom of our index aren’t just underperforming on a CarEdge metric. They’re doing the things the FTC is now formally warning the industry about.
A warning letter from the FTC doesn’t mean dealers will immediately change their behavior. Enforcement takes time, and habits baked into a dealership’s F&I process don’t disappear overnight. That’s why having independent, data-backed ratings matters.
Before you visit a dealership, you can check their Dealer Transparency score. This tool is 100% free. See their average doc fees. See how often they push mandatory add-ons. See how their out-the-door prices compare to what they advertise.
The FTC is telling dealers they need to be honest. CarEdge tells you which ones already are.
Check your dealership’s transparency score on the CarEdge Dealer Transparency Index.
Walk into a dealership and tell a salesperson you need to keep your payment under $500 a month. Watch what happens next.
They’ll smile, nod, and say something like “let’s see what we can do.” Then they’ll disappear into the manager’s office, and just like that, your negotiating leverage just vanished.
I spent four decades on the dealer side of the table. I’ve watched this play out thousands of times. The buyer thinks they’ve communicated a firm boundary. What they’ve actually done is handed the dealer a roadmap.
A monthly payment is not a price. It’s a math problem with four variables: the price of the car, your trade-in value, your down payment, and your loan term. Change any one of those and you can hit almost any monthly number a buyer asks for.
That’s the point.
When you anchor to a monthly payment, the out-the-door price of the car stops being the focus of the negotiation. The dealer shifts into what the industry calls “selling in the box” — managing those four variables to protect their profit while giving you the number you asked for.
Here’s a simple example.
Say you’re looking at a car that should sell for $35,000. You say you need to stay at $550 a month. A dealer can hit $550 a month at a fair price on a 60-month loan, or they can hit $550 a month on an overpriced car by stretching the loan to 72 or 84 months, burying your trade-in value, or bumping your interest rate a point or two. You got your number. They kept their margin. You won’t realize what happened until it’s too late.
None of this is illegal. It’s just leverage, and payment-focused buyers give it away for free.
If you’ve ever sat at a desk and had a salesperson slide over a worksheet divided into four boxes — purchase price, trade-in value, down payment, and monthly payment — you’ve seen the four-square.
The four-square is not a transparency tool. It’s a negotiation tool. It’s designed to keep your eyes moving between boxes so that while you’re focused on getting the monthly payment down, the trade-in value quietly drops, or the purchase price quietly rises, or the down payment grows.
Most buyers only watch one box. Dealers watch all four.
A classic move: the salesperson offers to drop your monthly payment by $40. Feels like a win. But they got there by extending your loan term by 12 months. You’re now paying an extra year of interest on a depreciating asset. The monthly payment went down. The total cost of the car went up.
If you don’t know what’s happening in the other three boxes, you can’t know whether you’re getting a good deal or not. That’s the whole idea.
The out-the-door price is the only number that matters when you sit down to negotiate. Everything else — monthly payment, loan term, interest rate — flows from that number. Get it right, and the rest of the deal has a foundation. Ignore it, and you’re building on sand.
Here’s how to approach it:
Only after you’ve agreed on an OTD price should you discuss monthly payment, and at that point, it’s just arithmetic.

This isn’t a complete case against thinking about your monthly budget. Knowing what you can realistically afford each month is responsible. The mistake isn’t having a number in mind, it’s leading with it, or letting it substitute for OTD-price thinking.
If you’re leasing, the monthly payment is more central to the structure of the deal. But even then, the capitalized cost (the effective purchase price in a lease), the money factor, and the residual value all drive that payment. A lease payment can be manipulated just as easily as a purchase payment if you’re not watching the underlying numbers.
Know your budget ceiling. Just don’t tell the dealer what it is.
What is the four-square method? The four-square is a worksheet dealers use to manage four deal variables simultaneously: the vehicle price, trade-in value, down payment, and monthly payment. By keeping all four in play at once, dealers can shift numbers between boxes to protect their margin while appearing to negotiate.
What’s the difference between monthly payment and out-the-door price? The out-the-door price is the total amount you’re paying for the vehicle, including all taxes, fees, and dealer charges — before financing. The monthly payment is what you pay after the loan is structured. Two buyers can have the same monthly payment and wildly different OTD prices depending on their loan terms and rates.
Is it better to just pay cash for a car? It depends, and the answer might surprise you. Paying cash removes the financing variable entirely, which in many ways is an advantage — no interest, no loan term manipulation. But dealers actually make money on financing through rate markup, so a cash buyer sometimes gets less flexibility on the vehicle price itself. The better move is often to secure a pre-approval, negotiate the OTD price as if you’re financing, and then decide at signing whether to use the loan or pay cash. That way you get the best of both.Should I tell the dealer my budget? You can acknowledge that you have a budget without disclosing a specific monthly number. If pressed, redirect: “I’m focused on making sure the price of the car is fair. Once we agree on that, we can figure out the financing.”
With gas prices moving higher, hybrid SUVs are a smart choice. But not all of your options get great fuel economy, and even fewer have stellar reliability ratings. We found six hybrid SUVs that offer a perfect combination of the highest miles per gallon and the best reliability ratings from Consumer Reports.

Fuel economy: 47 MPG city / 40 MPG highway
Consumer Reports reliability rating: 77/100
The 2026 RAV4 Hybrid is an all-new sixth-generation model, and for the first time, every RAV4 comes standard with a hybrid powertrain. The redesign brings more power (up to 236 horsepower in AWD trim), a towing capacity of up to 3,500 pounds, and Toyota Safety Sense 4.0 across the board. At 47 MPG in the city, it’s the most fuel-efficient option on this list, and its reliability score of 77/100 from Consumer Reports is the highest here as well.
See RAV4 Hybrid deals near you

Fuel economy: 43 MPG city / 36 MPG highway
Consumer Reports reliability rating: 61/100
The CR-V Hybrid remains a strong pick for city commuters, with 43 MPG in stop-and-go traffic and a capable 204-horsepower two-motor hybrid system. For 2026, Honda standardized wireless charging and a larger 9-inch touchscreen across the entire lineup, and added a new TrailSport trim for buyers who want more off-road capability. The CR-V faces stiff competition from the fully revamped 2026 RAV4.
See CR-V Hybrid deals near you

Fuel economy: 41 MPG city / 38 MPG highway
Consumer Reports reliability rating: 68/100
For buyers who want a luxury hybrid SUV without sacrificing efficiency, the NX Hybrid delivers. The 2026 NX 350h earns an impressive 38 MPG on the highway and pairs that efficiency with a well-appointed cabin featuring standard heated front seats, NuLuxe upholstery, and Lexus Safety System+ 3.0 across all trims. For 2026, Lexus added a new front-wheel-drive option and an F SPORT Handling trim to the hybrid lineup.
See Lexus Hybrid deals near you

Fuel economy: 35 MPG city / 34 MPG highway
Consumer Reports reliability rating: 63/100
The 2026 Forester Hybrid is a first for Subaru in the U.S. market, and it brings the brand’s trademark capability in line with hybrid efficiency. Standard Symmetrical All-Wheel Drive, 8.7 inches of ground clearance, and X-MODE with Hill Descent Control come standard making it the most off-road-capable pick on this list. The 194-horsepower hybrid powertrain delivers up to 581 miles of range per tank, and Subaru’s latest EyeSight Driver Assist Technology is standard across all trims.
See Forester Hybrid deals near you

Fuel economy: 35 MPG city / 34 MPG highway
Consumer Reports reliability rating: 68/100
The Highlander Hybrid is the traditional choice for families who need three-row seating without the bulk of a full-size SUV. Standard AWD, seating for up to eight, and a 3,500-pound tow rating give it real everyday utility, while 35 MPG combined keeps fuel costs manageable for a midsize three-row. Toyota Safety Sense 2.5+, the Toyota Audio Multimedia system, and an available JBL Premium Audio system are among the key highlights.
See Highlander Hybrid deals near you

Fuel economy: 37 MPG city / 34 MPG highway
Consumer Reports reliability rating: 73/100
If you need three rows and maximum fuel economy, the Grand Highlander Hybrid is the one to beat. It’s the most efficient three-row SUV on the market, returning 37 MPG in the city and earning a strong 73/100 reliability rating from Consumer Reports. The Grand Highlander’s stretched body gives it more passenger and cargo room than the standard Highlander, with up to 97.5 cubic feet of total cargo space — and seven USB-C ports throughout the cabin so no one in any row runs out of battery.
See Grand Highlander Hybrid deals near you
Not every hybrid SUV delivers on both efficiency and reliability. These six models earn their spots on both fronts. If fuel economy is your top priority, the RAV4 Hybrid is the clear winner in the compact class. Want luxury with your MPG? The Lexus NX Hybrid is tough to beat. And if you’re hauling a family of five or more, the Grand Highlander Hybrid gives you the most efficiency of any three-row on the market.
When gas prices rise, it’s only natural that interest in hybrid vehicles rises as well. Buying a hybrid should mean getting the best of both worlds: better fuel economy and a smart long-term investment. But not all hybrids deliver on that promise. Some combine below-average reliability with steep depreciation, which means you’re paying a premium up front and taking a loss on the back end.
Using Consumer Reports reliability scores and CarEdge’s Value Ratings, we identified six hybrids to avoid in 2026. These aren’t necessarily bad cars across the board, but for buyers who care about ownership costs and long-term value, these numbers should give you pause.

Consumer Reports Reliability: 20/100| Overall Score: 56/100| CarEdge Value Rating: C
The CX-90 PHEV is Mazda’s most expensive vehicle, with the plug-in hybrid version starting around $50,500. It drives beautifully and looks sharp, but Consumer Reports gives it a reliability score of just 20 out of 100 — the lowest on this list. Owners have reported recurring transmission roughness at low speeds, radar sensor errors, and technology glitches that required multiple dealer visits to diagnose. Mazda has issued recalls to address some of the transmission problems, but the issues persist across model years.
On resale, the CX-90 PHEV takes a significant hit early. Some owners have reported losing $10,000 to $13,000 in value within the first year. That kind of depreciation, combined with a reliability track record that’s still unproven for a relatively new platform, makes the plug-in hybrid variant a risky buy compared to the more proven gas-powered CX-90 trims. If you love the CX-90, the 3.3 Turbo models carry better reliability scores and similar driving dynamics.

Consumer Reports Reliability: 37/100| Overall Score: 58/100| CarEdge Value Rating: F
The Hornet R/T PHEV had a compelling pitch: 288 horsepower, 32 miles of electric range, and Dodge styling at a price closer to $40,000. But the real-world ownership experience for many buyers has been far less exciting. Consumer Reports gives it a 37 out of 100 for reliability, and owner forums are filled with reports of electrical failures, warning lights appearing at under 1,000 miles, chronic 12V battery drain, and software issues that dealers struggled to resolve.
The resale story is equally grim. A 2024 Dodge Hornet has depreciated 44% in just two years. CarEdge projects the PHEV variant to lose roughly 62% of its value over five years — one of the steepest depreciation curves in the compact SUV segment. It’s worth noting that Stellantis halted U.S. production of the Hornet for the 2026 model year due to tariffs on foreign-made vehicles, so new inventory is limited. Remaining units on dealer lots may come with incentives, but that doesn’t fix the underlying reliability concerns.

Consumer Reports Reliability: 39/100| Overall Score: 67/100| CarEdge Value Rating: D-
The Escape PHEV offers 37 miles of electric range and up to 105 MPGe, which are above average in the segment. But a Consumer Reports reliability score of 39 and a CarEdge Value Rating of D- reflect a pattern of ownership concerns that are hard to overlook. Common complaints from owners include infotainment failures, AWD system issues, and recurring recalls — with some owners reporting that their vehicles spent weeks at the dealer awaiting parts.
On depreciation, the Escape PHEV has been especially punishing. A 2024 Ford Escape Plug-in Hybrid depreciated 54% in just two years, leaving owners with a resale value of around $18,900. KBB notes the Escape’s resale value falls below segment leaders like the Honda CR-V, Toyota RAV4, and Subaru Forester. The 2026 model is also the last Escape before Ford transitions the nameplate, which adds uncertainty for long-term buyers. The all-new 2026 Toyota RAV4 Plug-In Hybrid, with an estimated 50 miles of electric range, makes for a compelling alternative.

Consumer Reports Reliability: 37/100| Overall Score: 73/100| CarEdge Value Rating: D+
The Lincoln Nautilus Hybrid is one of the better-scoring vehicles on this list in terms of overall quality — a 73 from Consumer Reports reflects a genuinely capable luxury SUV with a well-appointed interior and solid road manners. But reliability comes in at 37, and depreciation is a known weakness for Lincoln hybrids across the board.
Luxury vehicles depreciate faster as a rule, and the Nautilus Hybrid is no exception. At a starting price north of $55,000, a D+ Value Rating from CarEdge signals that buyers aren’t getting much return on that investment. Shoppers cross-shopping in the luxury hybrid SUV space should check CarEdge’s depreciation calculator before committing, particularly if they plan to sell or trade within five years.

Consumer Reports Reliability: 42/100| Overall Score: 73/100| CarEdge Value Rating: D+
The Sorento Hybrid offers three rows, and Kia’s appealing warranty coverage. On paper, it’s easy to see why it attracts shoppers. But a reliability score of 42 and a D+ Value Rating put it in uncomfortable territory for a vehicle that starts around $40,000.
Depreciation has been a consistent issue for the Sorento Hybrid. Data shows the Sorento Hybrid losing value faster than the segment average, making it a less efficient long-term investment than its price point would suggest. Buyers interested in a three-row hybrid SUV with stronger reliability and resale value might find better options in the Toyota Venza or Kia’s own Telluride — though the Telluride doesn’t offer a hybrid powertrain, its reliability and resale are significantly stronger.

Consumer Reports Reliability: 39/100| Overall Score: 67/100| CarEdge Value Rating: C+
The Sonata Hybrid earns the strongest CarEdge Value Rating on this list at C+, and its overall Consumer Reports score of 67 reflects a genuinely capable mid-size hybrid sedan. It’s fuel-efficient, comfortable, and loaded with features for the price. So why is it here?
Because a reliability score of 39 and a five-year depreciation trajectory that leaves owners with roughly $14,300 in residual value on a $30,000+ purchase deserve attention. Consumer Reports flagged the 2026 Sonata Hybrid’s electronics and build quality as specific reliability concerns, and the model was recalled for the risk of the fuel tank melting. Yes, you read that right.
Hybrid shoppers have more options than ever, and plenty of them are excellent. But the seven vehicles above combine reliability concerns with poor long-term value in ways that matter to your wallet. Before buying any hybrid, use CarEdge’s free depreciation calculator to see what a vehicle is projected to be worth in three to five years — it’s one of the most important numbers most buyers never check. It’s also smart to see the latest Consumer Reports reliability rankings for any hybrid you’re shopping for.If you want expert help identifying which hybrid is actually worth buying for your budget and situation,CarEdge Concierge can do the research and price negotiation for you.
Toyota owns the sedan market right now. Four of the five fastest-selling sedans in America are Toyota or Lexus models. On the other end, the Dodge Charger, Audi S3, and Nissan LEAF are sitting on dealer lots for months at a time, giving buyers real leverage.
Whether you’re shopping for a new sedan or just want to know where the deals are, the data tells the story.
Market Day Supply (MDS) measures how many days it would take to sell all of a model’s current inventory at the current pace of sales. A low MDS means a car is moving fast. A high MDS means it’s sitting.
Under 60 days: Healthy, seller-friendly market. Less room to negotiate. 60-120 days: Balanced. Deals are possible. 120+ days: Oversupply. Buyers hold the leverage.
By the way, it’s smart to familiarize yourself with car buying jargon with our free guide to terms you should know!

| Make | Model | Market Day Supply | Total For Sale | 45-Day Sales | Avg Selling Price |
| Lexus | ES | 23 | 841 | 1,624 | $50,295 |
| Toyota | Prius | 26 | 2,691 | 4,609 | $35,263 |
| Toyota | Camry | 41 | 40,451 | 43,988 | $35,383 |
| Toyota | Corolla | 42 | 26,754 | 28,711 | $25,828 |
| Toyota | Crown | 50 | 1,510 | 1,356 | $48,509 |
The Lexus ES leads the pack with just 23 days of supply. At that pace, every ES on a dealer lot today could be gone in less than a month. The Toyota Prius isn’t far behind at 26 days, which is notable for a car that’s selling at an average of $35,263.
The Camry and Corolla are workhorses here. The Camry has over 40,000 units available, yet dealers are moving nearly 44,000 of them every 45 days. That’s remarkable volume for any vehicle. The Corolla tells a similar story at just $25,828 on average, one of the most accessible price points on this entire list.
The Toyota Crown rounds out the top five at 50 days. It’s a newer, pricier entry in Toyota’s lineup, averaging just over $48,000, yet it’s still selling briskly.
What this means for buyers: If you’re shopping any of these sedans, expect dealer inventory to move quickly and negotiating room to be limited. That said, there’s no excuse to accept forced add-ons or dealer markups. Check CarEdge’s dealer reviews and use our OTD price calculator to know what you should actually be paying before you walk in.

| Make | Model | Market Day Supply | Total For Sale | 45-Day Sales | Avg Selling Price |
| Dodge | Charger | 452 | 8,841 | 880 | $58,300 |
| Audi | S3 | 368 | 614 | 75 | $58,765 |
| Nissan | LEAF | 296 | 1,696 | 258 | $35,160 |
| Genesis | G90 | 258 | 631 | 110 | $101,850 |
| Hyundai | Sonata | 237 | 12,668 | 2,401 | $30,130 |
The Dodge Charger sits at a staggering 452 days of supply. There are nearly 9,000 Chargers on lots across the country, and dealers are moving fewer than 900 of them every 45 days. At $58,300 on average, buyers who walk into a Charger negotiation today have serious leverage.
The Audi S3 is in a similarly tough spot. With only 75 units selling over a 45-day window and 614 on lots, it’s nearing a year of market supply. The S3 is a niche performance sedan, and at nearly $59,000, the market has spoken.
The Nissan LEAF’s struggles are no surprise. Without the federal EV tax credit, EV demand has cooled significantly, and with Nissan holding back on deliveries of the all-new 2026 model, EV buyers aren’t taking it seriously. Nearly 300 days of supply says it all.
The Genesis G90 is an outlier in a different way. Just 110 units sold over 45 days, but that’s almost expected for a six-figure luxury flagship. The question for shoppers is whether dealers are willing to move on price, and with 258 days of supply, the answer is likely yes.
The Hyundai Sonata may be the most interesting data point on this list. It’s a mass-market sedan at $30,130 average, with nearly 12,700 units in inventory. But 237 days of supply means it’s moving slowly despite the affordable price tag. Buyers who want a practical, budget-friendly sedan should take a hard look here.
What this means for buyers: High inventory means more negotiating power. If you’re shopping a slow-selling sedan, come prepared. Use CarEdge Pro to pull real invoice prices and Market Day Supply data for your local market before you negotiate.
If you’re buying a slow-selling sedan, the ball is in your court. Dealers know those vehicles aren’t moving, and that gives you an edge in negotiations. Start by checking CarEdge Car Search to see what’s sitting in your local market.
Shopping a fast-mover like the Camry or ES? You may have less leverage, but you can still protect yourself. Avoid markups, skip the unnecessary add-ons, and lean on CarEdge Concierge if you want an expert to handle the negotiation for you.
The timing couldn’t be worse for Honda. On March 12, the automaker announced it is canceling three electric vehicles that were set to debut later this year: the Honda 0 Series SUV, the 0 Series Saloon, and the Acura RSX. Honda is warning of losses up to $15.8 billion as it overhauls its EV strategy entirely.
In a press release, Honda explained the math behind the decision: “Honda determined that starting production and sales of these three models in the current business environment where the demand for EVs is declining significantly would likely result in further losses over the long term.”
Honda CEO Toshihiro Mibe was blunt about the situation. “Our first priority is to stop the bleeding,” he said. “Then, rebuilding Honda’s future business competitiveness and delivering results is our paramount responsibility.” Mibe added: “Ultimately, the responsibility lies with me. Precisely because of this, without further delay, and to avoid leaving significant liabilities for the future, I made the agonizing decision.”
The company pointed to U.S. market conditions as a key factor, noting that EV demand has slowed “due to several factors including the easing of fossil fuel regulations and revisions to EV incentives.”
That leaves the Honda Prologue as the only fully electric vehicle Honda sells in the United States, after the Acura ZDX was already discontinued. Going forward, Honda says its focus will shift to hybrid powertrains.
Honda acknowledged the broader consequences plainly: “Honda automobile business has fallen into an extremely challenging earnings situation due to various factors, including its inability to respond flexibly to these changes in the business environment.”
Meanwhile, chief rival Toyota is doing the exact opposite.

Since the start of 2026, Toyota has debuted four new electric vehicles for the U.S. market: the all-electric Highlander, the CH-R, the bZ Woodland, and a revamped bZ. Early reviews of models like the 2027 Highlander EV have been strong across the board, and the launches are drawing comparisons to Toyota’s dominance of the hybrid segment, where the RAV4 and Camry are now sold exclusively as hybrids.
Toyota’s patient approach to EVs has long been criticized as slow. Now it’s starting to look like a strategy that paid off. While Ford, GM, and now Honda have taken massive write-downs chasing early EV market share, Toyota built its brand on hybrids, maintained profitability, and is entering the EV market on its own terms with vehicles that are generating genuine enthusiasm.

If you’re shopping for a Honda and want a fully electric vehicle, your only option right now is the Prologue, and its long-term future isn’t exactly certain given Honda’s revised priorities. CarEdge’s total cost of ownership research finds that the Prologue is among the worst EVs for your wallet, earning a D- rating as of 2025. Hybrid shoppers are in better shape: Honda’s hybrid lineup across Accord, CR-V, and others remains strong.
But Honda’s abrupt retreat from EVs raises real questions about its competitiveness over the next decade. Toyota now has a growing EV portfolio backed by a hybrid customer base that trusts the brand on electrification. Honda is starting over.
Most people walk into a dealership assuming the dealer is trying to squeeze every dollar out of the deal. That’s fair. But here’s something most buyers never consider: sometimes a dealer is actively trying to lose money on your car (on purpose).
It sounds backwards. But once you understand why it happens, you’ll never negotiate the same way again. I spent 43 years as a car dealer, spending time in just about every major role throughout several dealerships. I want to share some insider tips that can help the average car buyer gain the upper hand when it comes to negotiating a car deal.
Let’s dive in.
Before we get into the volume game, it helps to understand how thin new car margins actually are.
On an economy car — your Kias, Hyundais, Nissans — a dealer might have 2 to 3% markup built into the sticker price. On a $22,000 car, that’s $440 to $660 in front-end profit before negotiations even start. Negotiate at all, and that number shrinks fast.
Luxury and truck margins are better, but even there, the car sale itself isn’t where dealerships make most of their money. The real profit centers are the Finance and Insurance office, the service department, and parts. Selling you a car is how they get you in the door for everything else.
Which means that from the dealer’s perspective, making a little less on the sale of the car isn’t necessarily a bad outcome. It depends on what else they stand to gain.
Here’s where it gets interesting.
Manufacturers set monthly, quarterly, and annual sales targets for every dealer in their network. Hit the target, and the manufacturer pays out a bonus — sometimes worth hundreds of thousands of dollars for a single month. Exceed the target, and the bonus gets even bigger.
The structure is typically tiered. To use a simplified example: sell 95 to 105% of your monthly goal and the factory pays $1,000 per car sold. Push it to 105 to 115% and that jumps to $1,250 per car. The incentive compounds the more you sell.
Now here’s the math that changes everything. If a dealer has sold 94 cars with two days left in the month, and their goal is 100, they need six more deals to hit the first bonus tier. At $1,000 per car across all 100 units sold, that’s a $100,000 payout. Suddenly, selling a car at a $500 loss isn’t losing money — it’s a $99,500 return on a $500 investment.
That’s why dealers take losing deals at the end of the month. The math works in their favor.
This dynamic creates real, predictable windows when dealers are motivated to deal in ways they simply aren’t at other times of the month.
The last week of the month is when pressure builds. The last Tuesday, Wednesday, or Thursday before month-end is the sweet spot — dealers are pushing hard, managers are flexible, and the urgency is real on both sides of the table.
The end of the quarter is even better. Quarterly targets stack on top of monthly ones, so the final days of March, June, September, and December carry double pressure. A dealer who’s behind on both a monthly and a quarterly goal has a lot of reasons to sharpen their pencil on your deal.
Model year changeovers are another opening. When new model year inventory starts arriving, typically late summer into fall, dealers need to move the outgoing models fast. A motivated dealer on aged inventory is a dealer you want to be talking to.
The same logic applies to slow-selling models in general. A vehicle that’s been sitting for 90 days is a liability. One that moves in a week is not. CarEdge tracks Market Days Supply for every vehicle — it’s one of the most useful numbers you can check before you negotiate, because it tells you exactly how much leverage you’re walking in with.
Knowing this is only useful if you act on it. Here’s how to put it to work.
Time your visit. End of month and end of quarter aren’t secrets, but most buyers still show up whenever it’s convenient. Being intentional about timing is one of the easiest advantages you can give yourself.
Know the invoice price before you go. MSRP is the dealer’s starting point, not yours. The invoice price — what the dealer paid the manufacturer for the car — is your baseline. CarEdge provides free invoice pricing data so you can walk in knowing the actual number, not a guess.
Check Market Days Supply. A car with 90+ days supply is sitting. A car with 20 days supply is moving. The more supply, the more room to negotiate. Find this on CarEdge Car Search before you set foot in a showroom.
Don’t be afraid to go below invoice. It happens more than most buyers realize. When a dealer needs a deal to hit a bonus tier, below invoice isn’t just possible — it’s logical for them.
Get competing offers. Contact multiple dealers on the same car. One of them may need your deal more than the others on a given day.
A few things worth being clear about.
Dealers aren’t desperate every day. If you show up the first week of the month, when quotas have just reset and the pressure is gone, you’re negotiating against a dealer who has no reason to give anything away. Timing matters.
Even when a dealer takes a thin deal on the car, they’ll look to make it up somewhere else — the financing, the trade-in, the add-ons in the F&I office. A good deal on the vehicle doesn’t automatically mean a good deal overall. Hold firm on extended warranties and other F&I products, and make sure your trade-in value is based on market data, not whatever number they write down.
If you’d rather not manage all of this yourself, CarEdge Concierge handles it all, from finding the car you want to negotiating the out-the-door price.
A buyer who walks in during the last week of the month, knows the invoice price, and understands the local market is in a stronger position than almost anyone else in that showroom. The manufacturer built this system to move cars. It can move money into your pocket too, if you know how it works.
Sometimes, the dealer needs your deal more than you need their car.
Walk into a dealership on a Saturday afternoon and you’ll immediately feel the energy. Salespeople are moving, managers are busy, and the finance office has a line. Now picture walking in on a Tuesday morning at 10 AM: quiet showroom, attentive staff, and a manager who picks up the phone on the first ring.
Both scenarios can work in your favor. They just require different strategies.
The truth is, timing matters enormously when buying a car. However, it’s not the one-size-fits-all advice you’re likely to see online. I was a car dealer for four decades before starting CarEdge with my son Zach. What I learned over the years can help you get a fair deal with the least stress.
Whether you’re shopping on a weekend or a weekday, knowing what’s happening on the dealer’s side of the table gives you leverage.
Weekends account for roughly 60-70% of dealership foot traffic. That creates real challenges for buyers: salespeople juggling multiple customers, managers buried in their offices, and F&I departments with hour-plus waits.
But here’s what most car buying guides won’t tell you.
It’s true that stores are busiest during the weekends, but deals can be had because the weekends are when stores are looking for sales volume. There are usually lots of appointments scheduled plus a lot of walk-in traffic. I would suggest that there is a greater emphasis placed on making deals especially on Saturday.
In other words, the same energy that makes weekends chaotic also makes dealers hungry. The floor is busy because they want it to be. And a prepared buyer can absolutely take advantage of that.
Go Early Saturday Morning
If you’re shopping on a weekend, get to the dealership by 9 AM. You’ll catch staff before the chaos builds, and you’ll be first in the finance queue. More importantly, you’ll have a salesperson’s full attention before they’re pulled in five directions.
Come Prepared — It’s Non-Negotiable
Weekend buyers who overpay are usually unprepared buyers. When the showroom is packed, pressure tactics thrive. Salespeople will suggest other customers are eyeing the same car. Managers will push for quick decisions. The antidote is doing your homework before you arrive.
Know the fair market value of the vehicle using tools like CarEdge’s Deal Finder. Have a pre-approval from your bank or credit union. Know your trade-in value. When you walk in with all of that, that pressure stops working.
Use the Dealer’s Motivation Against Them
Salespeople earn bonuses for closing deals on Saturdays — which means they have a personal financial reason to work with you. If you’re close on numbers, lean into that. A salesperson who earns an extra $200 for closing a deal today has more incentive to go back to the manager and push for a better number.
Don’t Let the Finance Office Drain You
The biggest weekend mistake isn’t the negotiation — it’s arriving at the F&I office mentally exhausted after a two-hour wait and saying yes to products you don’t need. If you’re going to shop on a weekend, plan for the wait. Eat beforehand. Know in advance what add-ons you’ll decline. Extended warranties, paint protection, and GAP insurance are all negotiable; GAP in particular can often be cut from $895 to under $400 if you push back.
None of this means weekdays have lost their advantage. If you have flexibility, Tuesday through Thursday mornings remain the lowest-pressure environment for buying a car. Manager wait times shrink, salespeople focus entirely on your deal, and there’s no manufactured scarcity in the room.
The best time of all? A Tuesday or Wednesday morning in the final week of the month — or better yet, the final week of a quarter (late March, late June, late September, late December). Monthly and quarterly quotas stack on top of each other, and dealers are sharpening pencils to hit numbers before the deadline.

Rainy days cut foot traffic 30-40%, even on weekends. Quotas don’t change with the weather. A rainy Saturday can give you the deal volume of a weekend with the calm of a weekday.
Holiday sale weekends (Memorial Day, Labor Day) are marketing events first, deals second. The pricing is often available any other time. The Tuesday after a holiday weekend can be a hidden gem — the promotions sometimes linger, but the crowds are gone.
Model year changeovers (August-October) are when dealers most need to clear outgoing inventory. Stack that timing with end-of-quarter pressure and you’ve got real leverage going in.
Is it better to buy a car on a weekend or a weekday? It depends on your situation. Weekdays offer a calmer environment and more manager availability. Weekends bring more pressure but also higher dealer motivation to close — especially on Saturdays when sales spiffs are common. A prepared buyer can do well on either day.
What is the best day of the week to buy a car? Tuesday through Thursday mornings offer the lowest pressure and most attentive service. But Saturday mornings before 10 AM can also be effective if you arrive prepared and understand how to use the dealer’s closing motivation to your advantage.
Is it better to buy a car at the end of the month? Yes. The last week of the month — particularly the final Tuesday, Wednesday, or Thursday — is when dealers are pushing hardest to hit quotas. End-of-quarter deadlines (March, June, September, December) add even more pressure in your favor.What should I bring to a dealership? At minimum: a pre-approval from your bank or credit union, documentation of your trade-in value, and research on fair market pricing for the vehicle you want. Tools like CarEdge’s Deal Finder can help you walk in knowing exactly what the car should cost.
If you’ve seen the headlines this week, you might think buying a new car just got a lot more expensive. According to the latest data from Kelley Blue Book, the average new vehicle transaction price hit $49,353 in February, a 3.4% jump since last year, and one of the bigger annual gains in recent memory.
However, the latest CarEdge analysis of mainstream car prices shows that market averages can be a little misleading. Let’s take a look at the latest new car price updates, and what they mean for car buyers this spring.

Each month, Kelley Blue Book and Cox Automotive publish average transaction price data across the entire new vehicle market. In February, that industry-wide average came in at $49,353, up 3.4% from a year ago. For context, the average annual price increase over the past three years has been closer to 0.9%, so February’s gain stands out.
The average sticker price crossed $50,000 for the eleventh month in a row, landing at $51,440.
On the incentives front, automakers nudged discounts slightly higher. The average incentive package worked out to 6.9% of transaction price in February, up from 6.5% in January. But compared to a year ago, when incentives averaged 7.0%, buyers aren’t actually getting meaningfully more relief. The deals are about the same.
A few segments worth noting:
On the EV side, prices continued to fall. The average EV transaction price dropped 1.4% year over year to $55,300. But automakers are leaning hard on incentives to move them, with the average EV discount now sitting at 14.2% of transaction price. That’s more than double the industry average, which tells you something about where demand actually stands.
Here’s the thing about industry-wide averages: they include everything. Low-volume luxury sedans, six-figure SUVs, exotic sports cars — they all get folded into the same number. When the average gets pulled up by vehicles that represent a small slice of total sales, it can paint a skewed picture of what most car buyers are actually facing.
This kind of headline doesn’t reflect the reality for most shoppers. The cars Americans are actually buying — in massive numbers, month after month — tend to transact well below $49,000.
So what are people actually paying? That’s where our own new car price tracker, the CarEdge Popular 20 comes in.
Every month, CarEdge tracks real transaction prices on the 20 best-selling vehicles in America.
The result is the CarEdge Popular 20, a monthly index that tells you what the market actually looks like for the vehicles most people are shopping for.

The CarEdge 20 isn’t meant to replace the years of great data from the likes of KBB, Cox Automotive, and Edmunds, but it serves as a new datapoint that may provide a better read on the market most consumers are in.
In February, the average transaction price of the 20 top-selling models in America was $42,016, roughly $7,300 below KBB’s industry-wide figure. In March, it nudged up slightly to $42,149, a 0.32% increase. That’s a stable, modest move, not the dramatic price surge the industry-wide average might suggest.
And several of the most popular cars in the country are transacting well under $30,000:
Eight additional models are well under $40,000. These are among the best-selling cars in America, and buyers are getting into them for prices that look a lot different than the $49K headline from KBB.
Within the CarEdge Popular 20, there are a few trends worth watching this month.
The Subaru Outback has seen the biggest price increase since January, up 2.06% to $41,717. The new 2026 Outback didn’t just receive the full SUV treatment for the first time, it also saw a $5,000 increase in the base MSRP.
The Ford Explorer is moving in the opposite direction, with average selling prices down 1.0% to $49,455 in one month.
Trucks are telling a split story. The Ram 1500 is trending up, rising to $60,867 since January. The Ford F-150 is also creeping higher at $61,469. Meanwhile, the Chevrolet Silverado 1500 and GMC Sierra 1500 are both pulling back slightly.
It’s also worth noting that even our Popular 20 truck prices — which average around $59,000 across the four full-size models — are meaningfully below KBB’s full-size pickup segment average of $66,157. That gap likely reflects heavy-duty trims and higher configurations inflating the segment average in KBB’s average price data. The trucks most people are actually buying are cheaper than the headlines imply.
The $49,000 average transaction price from KBB shows just how much new car prices have risen since 2021. It’s especially useful for comparing long-term trends. But the vehicles Americans are actually buying most are transacting around $42,000 on average, and if you’re shopping for a compact SUV, sedan, or subcompact, you’re likely looking at something closer to $30,000 to $38,000.
Knowing what others are actually paying is the most powerful tool you have when you sit down at a dealership. That’s what CarEdge is built to give you.
Want to see what people are paying for the car you’re shopping? Check local car market data on CarEdge before you buy.