Cox Automotive Inc

The EV market moderated in June following a stronger May, as both new and used EV sales declined month over month. Despite softer demand, new EV inventory remained well below year-ago levels, reflecting a market that continues to operate with relative discipline. At the same time, used EV sales remained substantially above year-ago levels as off-lease returns and trade-ins increase availability.

How did negative equity become one of the automotive industry’s biggest affordability challenges, and what does it mean for consumers and dealers? In this episode of The Auto Market Brief, host Erin Keating is joined by Micah Tindor, AVP of Consumer Vehicle Disposal at Cox Automotive, to explore how negative equity became one of the industry’s most significant affordability challenges and why its impact is likely to extend far beyond trade-in transactions.

New-vehicle prices increased modestly in June, according to data released today by Kelley Blue Book, a Cox Automotive brand. The average transaction price (ATP) for a new vehicle purchased in June increased less than 1% year over year to $49,758, as buyers continued to migrate to a mix of more affordable vehicles. Vehicle sales in June were healthy, with the seasonally adjusted average rate (SAAR) at 16.5 million, the highest point in 2026.

This edition of the Auto Market Weekly Summary includes updates on new-vehicle pricing, auto credit availability, consumer credit, and the minutes from the June Federal Open Market Committee (FOMC) meeting. The conflict in the Middle East intensified this past week as the ceasefire came to an end, adding fresh uncertainty to an already complex economic backdrop. The collapse of the ceasefire in the Middle East reestablished the conflict as the dominant risk heading into the second half of 2026.

The electrified vehicle story in the first half of 2026 is increasingly a story about hybrids. While the overall U.S. new-vehicle market is expected to decline by 2.2% compared to a year ago, according to Kelley Blue Book counts, hybrid sales are forecast to increase by approximately 9%. Elevated gas prices continue to support demand for fuel-efficient vehicles, and automakers are expanding hybrid offerings across more product lines.

In June 2026, the Dealertrack Credit Availability Index rose to 104.6, its highest level in more than a decade. The All-Loans Index increased 0.9% from May’s 103.6, marking its fifth consecutive monthly increase, and a rise of 7.3% from June 2025. The monthly gain was driven primarily by a sharp improvement in approval rates and a continued uptick in long-term loan share, with a modest widening in the yield spread. A further pullback in subprime share only partially offset those gains.

ATLANTA, July 8, 2026 – Wholesale used-vehicle prices (on a mix-, mileage- and seasonally adjusted basis) were higher year over year in June as the used-vehicle market closed the first half of 2026 with healthy demand and stable pricing conditions. The Manheim Used Vehicle Value Index (MUVVI) rose to 212.9 in June, an increase of 2.1% from a year ago and 0.1% from May.

The Manheim Used Vehicle Value Index (MUVVI) rose to 212.9, reflecting a 2.1% increase for wholesale used-vehicle prices (adjusted for mix, mileage, and seasonality) compared to June 2025. The June index is up 0.1% month over month. The long-term average monthly move for June is an increase of 0.5%. Non-adjusted wholesale vehicle prices are now up 2.9% year over year, and down 1.3% against May 2026. The long-term average monthly move in non-adjusted values for June is a decrease of 0.5%.

Independent dealers don’t need a report to tell them the market is tight, they’re living it every day. Inventory is harder to find, more expensive to acquire, and increasingly contested by larger dealers with more scale, capital and access to supply. At NIADA 2026, Cox Automotive’s Michael Browning and Christine Garcia tackled that reality head-on in a session on inventory sourcing strategy.

As holiday celebrations were getting underway last week, we received updates on new automotive sales, jobs and unemployment, consumer confidence, and home prices—all included below in this Auto Market Weekly Summary. Gas prices continue to decline, but now at a lower rate, with prices holding near $3.85 nationwide. We should see lower inflation in the coming months, but higher expenses have driven stagnant real disposable income growth at a time when consumers need it.