1-16-2026 Auto Market Report

Economic Snapshot

Job growth is weak: December added 50K jobs, and prior months were revised down
Three-month job creation average is now negative, confirming a cooling labor market
Unemployment improved to 4.4 percent, but it is still higher than last year
Participation is flat and running slightly below 2024 levels
Wages remain a support: up 3.8 percent year over year and still beating inflation
Consumer credit growth slowed sharply: total credit up only about $4B

Used Car Sales

Market is stable entering 2026 with upward pressure, roughly 2 percent expected
Retail pricing remains above pre-pandemic levels, but retail supply is low
Off lease volume is rising as 2023 and 2024 cohorts return
More late model, low mileage inventory is showing up in wholesale lanes
EV lease returns are increasing, expanding affordable used EV selection

Demand Setup

Auto loan rates have eased to the lowest levels in a year
Tax refund season is approaching and typically lifts Q1 demand
Affordability is improving gradually, supported by wage growth

Dealer Actions

Acquire aggressively in January: stable wholesale pricing plus improving off lease flow
Retail execution: be ready for better traffic as rates ease and refunds hit
Mix strategy: target EVs and luxury for margin, trucks and SUVs for faster turns
Discipline: tight pricing and fast response to the right inventory will separate winners

Agile Auto, helping dealers execute today for tomorrow!

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