Despite concerns around tariffs, elevated interest rates, high fuel costs, and affordability, the U.S. automotive market continues to perform better than broader economic headlines might suggest. New-vehicle sales have remained relatively steady, while demand for older, more affordable used vehicles has strengthened as consumers look for ways to control transportation costs.

Affordability remains one of the industry’s biggest challenges. New-vehicle transaction prices remain near $50,000, while used vehicles average around $30,000. Higher insurance, maintenance, repair, and fuel expenses are adding to the total cost of ownership. At the same time, improving credit availability is helping keep financing accessible for qualified buyers.

For fleets, the market supports a cautiously optimistic outlook heading into late 2026 and 2027. Rather than reacting to individual economic headlines, fleets should continue monitoring vehicle pricing, availability, interest rates, maintenance costs, and used-vehicle values. Strong replacement planning and attention to total cost of ownership will remain important as market conditions evolve.