Where Used-Car Prices and Loan Rates Stand in 2026
If you've been waiting for the used-car market to cool off, 2026 has been a mixed bag. Wholesale values climbed through the spring, but financing costs have finally started to come down. Here's where things actually stand.
Prices are still firm
The Manheim Used Vehicle Value Index — the industry's benchmark for wholesale (auction) prices — reached 213.1 in mid-May 2026, up about 3.8% from a year earlier. Values rose strongly in the first quarter (the index hit 215.3 in March, up 6.2% year-over-year) as a healthy tax-refund season pulled shoppers into the used market. In short: demand is solid and prices haven't collapsed.
On the retail side, the average used vehicle listed for roughly $25,390 in early 2026. Electric used vehicles have been appreciating even faster than gas models, so if you're shopping for an EV, expect to pay closer to the top of your budget.
But borrowing is getting cheaper
The better news is on rates. With the Federal Reserve's target now at 3.50%–3.75% after a series of cuts, auto-loan APRs have started to ease from their multi-year highs. Average used-car APRs in mid-2026 land around 10%–12% depending on the source and borrower mix — still high by historical standards, but trending in buyers' favor for the first time in a while.
What it means for you
The typical used-car shopper is financing about $27,500 over roughly 68 months and paying near $537 a month. You can do meaningfully better than average by improving the two levers you actually control: your credit profile and your down payment. Even half a point of APR adds up over a five-and-a-half-year loan.
Because rates are drifting down, it's also worth asking about refinancing later if you buy now with less-than-perfect credit and then improve it.
Ready to find your next car? Yans Auto Group works with lenders for every credit situation. Get pre-approved in minutes, browse our inventory, or call us at (323) 391-0000 — 6515 N Figueroa St, Los Angeles, CA 90042.