More incentives? Higher prices? What car buyers can expect in 2026
Auto industry experts predict that car sales will be flat compared to 2025.
- A majority of auto dealers cite the U.S. economy as the biggest factor holding back auto sales.
- Nearly three-quarters of Americans believe buying a new car is unaffordable, with the average price close to $50,000.
- The average monthly payment for a new car will reach an all-time high of $772 in the second half of 2025.
Car dealers say the U.S. economy is the biggest factor holding back car sales, according to new data released by Cox Automotive on March 3.
According to the data, 52% of car dealers say economic conditions are holding back car sales in the first quarter of 2026, up from 45% in the same period in 2025.
The only factor in the survey that exceeded 35% was market conditions, with 37% of dealers saying it was an issue.
The findings come after a recent Washington Post/ABC News poll found that 74% of Americans said they think buying a new car is unaffordable.
The average price of a new car reached $49,191 in January 2026, according to Kelley Blue Book. The group is expected to report new data on average car prices for February soon.
Cox said automakers are expected to sell 1.19 million vehicles in February 2026, down 3.4% from February last year.
What is the average car payment?
The average monthly payment for a financed new car reached an all-time high of $772 in the fourth quarter of 2025, Edmunds said. This figure compares to $754 in Q3 2025 and $754 in Q4 2024.
The group said the percentage of new car buyers with monthly payments of $1,000 or more also reached a record high of 20.3% in the fourth quarter of 2025. This percentage increased from 19.1% in Q3 2025 and 18.9% in Q4 2024.
“Faced with persistently high vehicle prices and borrowing costs, many consumers have been forced to take out large amounts of money, extend loan terms and reach four-digit monthly payments,” Ivan Drury, director of insights at Edmunds, said in a statement.
Looking into 2026, Drury said, “New car prices remain high but are starting to stabilize, lower interest rates may provide some relief to buyers of both new and used cars, and we expect increased off-lease revenues to provide more affordable alternatives in the used car market.”
What is the most expensive car?
The most expensive car brand in January was Porsche, with an average selling price of $128,761, according to the latest available data.
Here are the rest of the top five most expensive car brands so far this year:
- Land Rover: $101,554
- Cadillac: $83,667
- Mercedes-Benz: $76,410
- BMW: $73,653
