Top 5 Things Dealers Should Prepare for in 2026

ppo morning market update for 2026
  • December 3, 2025

Top 5 Things Dealers Should Prepare for in 2026

The forces shaping used-car retail next year — and how to prepare for them now.

As 2026 closes in, the retail environment is shifting again — not collapsing, but reorganizing. Here are the five biggest forces dealers need to brace for, and the moves that will put you ahead of the curve.

1. Affordability Pressure Will Intensify

New-car pricing continues to push shoppers directly into the $20K–$28K used sweet spot. Manufacturers are quietly removing low-price trims, and consumer payments remain stretched.

Infographic showing affordability pressures increasing as entry-level models shrink.
Affordability pressure increases as new entry-level models disappear.

What to do:

  • Double down on trims that still hit affordability windows
  • Use LMDS + Scarcity Index to avoid overpaying
  • Implement fast-trust merchandising to win the click before price becomes the objection

2. Used EV Pricing Will Stay Volatile

Batteries, incentives, aging EVs, and inconsistent auctions will continue to create unpredictable pricing swings throughout 2026.

Infographic showing pricing swings across used EV trims and battery conditions.
Used EV pricing remains sensitive to battery health, incentives, and supply flow.

What to do:

  • Buy only price-protected trims
  • Lead with recon transparency, battery health, and trim clarity
  • Apply the PPO EV Recon Checklist on every appraisal

3. Click-to-Compare Shoppers Will Take Over

Shoppers are bypassing long SRP scrolls and starting their journey directly in comparison mode. By late 2026, this will be the majority behavior.

Graphic showing comparison-shopping behavior rising across used-car shoppers.
Click-to-Compare shoppers will dominate the 2026 retail journey.

What to do:

  • Make the vehicle stand out before the comparison grid
  • Use AI-powered merchandising for trim clarity and VDP credibility
  • Leverage the upcoming PPO First-Click Advantage guide

4. Trade-In Quality Will Decline

Consumers are holding onto vehicles longer due to affordability concerns. Expect higher mileage, rougher condition trades, and fewer clean 1-owner cars.

Visual graphic showing decline in trade-in quality and rising average mileage.
Consumers delaying purchases means rougher trade-ins across 2026.

What to do:

  • Train service advisors & techs on identifying high-value trade opportunities
  • Use AI-assisted condition translation in your listings
  • Reprice aging inventory faster as clean trades become scarce

5. Inventory Sourcing Will Become Hyper-Local

Auction volatility, shipping costs, and regional demand gaps will make local sourcing more profitable than national search patterns.

What to do:

  • Track micro-market Scarcity Index shifts
  • Use Stockwave + Autotrader overlays for localized trim insight
  • Build a 2026 “micro-market sourcing map” using your past 90-day winners

Download the 2026 Dealer Readiness Checklist

Get the one-page PPO summary covering affordability strategy, EV volatility, merchandising clarity, sourcing, and trade evaluation.

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