Critical Shifts:
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Record Prices, Unbroken Demand: New vehicle prices hit a record $52,016, yet demand stayed strong with days-to-move falling to 69 days.
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Used & CPO Surge: Affordability drove buyers to used cars (days-to-move under 40 days) and CPO inventory (up 3.9%).
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Pivot to Efficiency: Buyers shifted toward sedans, compact SUVs, and hybrids, while full-size trucks lost momentum.
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Precision Over Broad Discounts: One-size-fits-all pricing no longer works—dealers now require VIN-level pricing and marketing to protect margins.
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Catalyst IQ, an automotive analytics, insights and marketing company helping dealers identify opportunities, make smarter decisions and sell more vehicles through proprietary market intelligence and experienced automotive marketers, released its Q2 2026 State of the Industry Report.
Drawing on insights from MarketAI – Catalyst IQ’s proprietary intelligence engine that analyzes inventory trends, consumer demand and competitive activity across nearly 20,000 franchise dealerships and 99% of independent dealerships nationwide – the report found Americans continued buying vehicles but fundamentally changed their shopping behavior because of record new vehicle prices. Consumers are increasingly prioritizing affordability, fuel efficiency and value, forcing dealers to rethink marketing strategies that they have leaned on for decades.
“MarketAI provides actionable data and insights that dealers can activate to accelerate sales,” said Andy Lobred, CEO of Catalyst IQ. “In addition to live access to MarketAI intelligence, we provide our clients with an in-house expert who monitors and translates what is happening in their market. This human expertise combined with MarketAI insights provides an unmatched edge. Dealers can identify opportunities earlier, make smarter decisions and sell more vehicles while protecting margin and maximizing every marketing dollar.”
Among the report’s key findings (Q2 2026 vs. Q1 2026):
- New vehicle prices reached a record $52,016, up $1,259 quarter-over-quarter and $1,504 year-over-year. Consumer demand remained resilient as turn rates climbed to 38% and days to move fell to 69 days.
- Used vehicle demand continued to strengthen as affordability remained a key purchase driver, with average marketed prices rising to $28,712, turn rates increasing to 73% and days to move dropping below 40 days for the first time in nearly three years.
- Certified pre-owned vehicles reinforced their position as the bridge between affordability and quality assurance. Average marketed prices increased to $40,459 while inventory grew 3.9% quarter-over-quarter to meet sustained consumer demand.
- Consumers increasingly prioritized fuel efficiency and value, driving stronger demand for smaller SUVs, sedans and hybrid vehicles while many full-size trucks and SUVs lost momentum across the market.
- VIN-level pricing, merchandising and marketing decisions became increasingly important as broad pricing strategies lost effectiveness across brands, markets and vehicle segments.
This new era of automotive retail where demand is increasingly fragmented by vehicle segment, geography and shifting consumer priorities demonstrates growing value in dealer precision in pricing, inventory and marketing decisions over broad pricing strategies.
“Consumers have clearly adjusted to today’s pricing environment,” said Rick Wainschel, Vice President of Analytics at Catalyst IQ. “Broad pricing and marketing strategies that dealers leaned on for decades are becoming less effective because every market, brand, model, and even VIN behaves differently. Dealers who remain agile and act quickly on market shifts will be the ones best positioned to protect margin and gain market share.”
