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Thinking about Buying a Car?

Jun 23, 2026 | Blog

High car prices have been a constant in the headlines throughout 2026, but the final sale price of the average new car dropped slightly in May.

Those high price headlines can make car shoppers feel a little fatalistic. But they’re slightly misleading. The average is high, in large part, because Americans are choosing to pay more. Luxury cars and luxury trim levels on pickup trucks push up the average. Savvy shoppers can still find a quality car for much less than the average.

If you’re in the market for a new or used vehicle, May brought some encouraging news. New car prices averaged $49,220, a slight dip from the month before, and used car inventory is rising. Plus, lending standards have eased significantly, making it the most accessible it’s been in nearly four years to qualify for an auto loan. If a vehicle purchase has been on your radar, now may be a good time to explore your options.

Where the opportunity is:

According to the Kelly Blue Book Report, Dealers are sitting on leftover 2025 models and motivated to move them.
Used EV inventory is surging as lease returns hit the market and make great deals if you’re open to electric. Edmunds Q1 2026 Used Car Report
Kelly Blue Book Report states, automakers are offering incentives averaging over 7% off transaction prices, especially on EVs, compact cars, and trucks.

The One Big Beautiful Bill Act, includes a new deduction nicknamed “No Tax on Car Loan Interest.” If you finance a new U.S.-assembled vehicle for personal use, you may be able to deduct up to $10,000 per year in loan interest on your federal taxes. It applies to tax years 2025 through 2028. Ask your tax advisor if you qualify.

Our advice? Start here:

Edmunds.com: find current incentives and your trade-in value
ConsumerReports.org: find the most reliable makes and models
Get pre-approved through your bank before stepping into a dealership

Click here for E2E’s EXCLUSIVE Car Buying Guide

Knowledge is your biggest advantage in this market. Need help thinking through what makes sense for your budget? Schedule a complimentary consultation to get started on financial coaching and we can work through your options.

And as always, your weekly market update is here.

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