In this quarter’s Quick Takes, Bethany Johnson, Director of Business Development for vAuto, joins Lance Helgeson, Director of Business Intelligence, to break down what’s happening in the new- and used-vehicle markets. She covers the headlines from new-vehicle pricing and incentives to the fuel-economy shift reshaping depreciation, and why used-vehicle acquisition is where dealers win or lose right now. Watch the 7-minute conversation for practical inventory and acquisition takeaways you can act on this quarter.
What happened in the Q3 2026 auto market?
New-vehicle demand stayed resilient. The average transaction price topped $50K, front-end gross approached $3,000, and incentives rose. Market day supply climbed from 75 to 82, though, and holding costs are under pressure. In used vehicles, acquisition is the top priority. Service lane, private party, and equity mining are the key channels for sourcing profitable inventory.
Key takeaways from Q3 2026
New vehicles
- Pricing and profitability held up. The average transaction price is above $50K, front-end gross is near $3,000, and incentives are up, so there’s something in it for both dealers and shoppers.
- Higher-priced vehicles are softer. The higher the price point, the more likely a vehicle is to sit on the lot.
- Fuel economy is driving depreciation. ICE vehicles above 35 MPG are appreciating steeply, low-MPG vehicles are depreciating steeply, and mid-range vehicles are roughly flat.
- EVs are still a small share. EVs were up 6.1% from Q2 but represent about 6.4% of new-vehicle sales.
- Days supply is softening. It moved from 75 to 82, and higher rates make holding costs more important to watch.
Used vehicles
- Acquisition and appraisal are where profit is made. Know how to exit a vehicle before you acquire it.
- Use every acquisition channel. Prioritize your service drive, then private party and equity mining.
- Be ready to explain the math on trade-ins. Matching or beating big-box offers, or simply walking the shopper through the numbers, can help you acquire trades at a lower ACV.
- Don’t get sloppy on the basics. Competitive pricing and strong merchandising matter more as shoppers travel farther outside your AOI.
Frequently asked questions
It’s above $50,000, according to Bethany Johnson of vAuto. Front-end gross is nearly $3,000, and incentives are up.
Gas-powered vehicles rated above 35 MPG are appreciating steeply. Vehicles with poor MPG are depreciating steeply, and mid-range MPG vehicles are roughly flat. Diesel trucks are also seeing softness, driven by both fuel economy and price point.
Service lane acquisition remains the top channel, followed by private party and equity mining. Dealers who have a strong process for appraisal and trade-in conversations are best positioned to acquire profitable inventory.
Market day supply moved from 75 to 82 this quarter. With holding costs rising, dealers should monitor days supply closely, especially heading into stronger selling months.
