New car incentives help buyers beat high prices
Although new‑vehicle prices near a record, incentives and easy financing make buying a new car worthwhile, while used‑car prices remain high but could stabilize as inventory improves.
21 Oct 2026 0 reads Compiled with AI
#new car #used car #auto loan #financing
New‑car prices are close to an all‑time high, with the average selling price in September 2026 at $50,562. Dealers offered incentives that amount to about 6.5% of the average transaction price. Financing is also friendly: in September, lenders approved nearly 74% of auto‑loan applications and the average down payment was 12.8%. Buyers should avoid very long loans, because a longer term can keep them underwater longer and make the next trade‑in harder. The best strategy is to shop at several dealers, compare financing offers, and focus on the total cost of borrowing, not just the monthly payment.
New‑car buying offers incentives
Used‑car prices are still high, with an average listing price of $27,235 in September, the highest since 2022. The supply of used vehicles is improving, with a 49‑day inventory level that is higher than the 44 days seen in August. That extra supply could help keep prices stable through the fall. Buyers with a budget under $15,000 will find fewer options, because older, affordable cars are scarce. Before buying a used car, compare its price to a new‑car deal, because a newer used car may cost almost as much as a brand‑new one when incentives and financing are added.
Selling or trading a used car remains attractive, because used‑car values are near recent highs. A private sale usually yields the most money, but selling or trading to a dealership is faster and easier. Get multiple offers before accepting one. Check your equity first.
If you need a car now, buying a new one can still be a smart choice, especially if you find incentives, avoid expensive trims, and qualify for favorable financing. Used‑car buyers should be cautious, particularly at the lower end of the market, though improving inventory is encouraging. Sellers and trade‑in shoppers can still expect good offers, but they should shop around before finalising a deal. For more help, visit the Car Affordability Information Center.