August has traditionally been a decent time to shop for a car, as dealers push to hit end-of-month and end-of-quarter targets before new model-year inventory arrives. This year’s market has a few extra wrinkles worth understanding before you sign anything — some working in buyers’ favor, and some that make certain segments harder to shop than others.
New cars: prices are high, but not spiking
The average new vehicle sold for $49,855 in July 2026, according to Kelley Blue Book, about 1.9 percent higher than a year earlier. That’s a real increase, but a modest one by recent historical standards — most months over the past decade have seen year-over-year growth closer to 3 percent. The bigger story for new-car shoppers is where that price pressure is coming from: 2026 model-year vehicles are running roughly $2,000 higher on average than their 2025 counterparts, well above the typical $400 bump a new model year usually brings. Tariffs are a major factor, and they’re hitting more than just imports — no vehicle assembled in the US today uses 100 percent domestic parts, so even domestically built cars are seeing some of that cost passed through. Luxury imports are taking the biggest hit of all.
There is a genuine bright spot, though: it hasn’t been this easy to qualify for a new car loan in more than a decade. If financing has kept you out of the new-car market in recent years, this is the best lending environment in a long time to revisit that math.
Used cars: solid overall, tight at the bottom
The average listing price for a used vehicle hit $27,027 in June, according to Cox Automotive — the first time it’s crossed $27,000 since the summer of 2023. Prices have stayed largely flat since, which is good news in the sense that they’re not climbing further, but it also means the relief many buyers were hoping for hasn’t fully materialized.
The real squeeze is at the affordable end of the market. Vehicles priced under $15,000 are selling especially fast, with dealers carrying only about a 33-day supply in recent weeks compared with a roughly 46-to-47-day supply for the market overall. Inventory in that price band has fallen 20 percent year over year and now makes up just 16.4 percent of used inventory nationwide, and prices in that segment are climbing faster than anywhere else — up nearly 14 percent. If you’re shopping on a tight budget, expect to move quickly when you find something reasonable, and don’t assume the “used cars are getting cheaper” headlines apply evenly across every price point.
Category matters too. Used pickup truck prices rose nearly $400 last month, with the fastest increases in the Mid-Atlantic region, while the South and Southwest actually saw truck prices dip. Used SUV prices, by contrast, fell about $130 heading into the back-to-school season — a small but real opportunity for family-vehicle shoppers right now.
Used EVs are the segment to watch
If you’ve been waiting for used electric vehicle prices to soften, this month brings encouraging news. Used EV prices were essentially flat in August, a shift driven largely by a wave of vehicles returning from lease: roughly 300,000 EVs are expected to come off lease in 2026, more than double the approximately 123,000 that returned in 2025. That much additional supply hitting the market at once should help keep used EV prices in check for the rest of the year, even with gas prices remaining elevated and pushing some shoppers toward electrified options. Used EV inventory is also becoming more diverse — for years dominated almost entirely by Tesla models, the used market is now seeing a growing number of other brands as newer-generation EVs from additional manufacturers begin trading hands.
A few practical steps before you buy
Whatever segment you’re shopping in, a handful of habits make a real difference in what you end up paying. Research the specific price trend for the model you want rather than relying on broad market averages, since trucks, SUVs, sedans and EVs are all moving in different directions right now. Always request a vehicle history report on a used car to understand its accident and maintenance record. Check current market values before you negotiate so you know whether an asking price is fair. And if you’re financing, shop your loan rate separately from the dealership’s offer — with approval odds at their best point in years, you’re in a stronger position to compare terms than buyers have had in a long time.
The bottom line
There’s no single answer to “is now a good time to buy” in August 2026 — it depends heavily on what you’re shopping for. New-car buyers face steady but not runaway prices and unusually favorable financing. Used-car shoppers face a mixed bag: relief is coming for EV buyers thanks to a historic wave of lease returns, but budget shoppers under $15,000 are contending with the tightest inventory in the market. Knowing which of those categories you fall into — before you walk into a dealership — is the single best piece of leverage you can bring with you.
