The Vermont Drive
Informing the Automotive Industry
The Cox Automotive outlook points to an auto market caught between competing forces: modest economic growth and improving credit availability on one hand, and rising costs, global instability, and affordability pressures on the other. New vehicle sales are softening in 2026, down year-over-year as economic uncertainty, winter weather, and higher costs weigh on buyers.
Used vehicle markets are holding up better, with tighter supply and stabilizing prices. Electrification continues to grow, led by hybrids, though consumer adoption remains gradual and price-sensitive. Affordability—not demand—is the central challenge shaping vehicle sales, dealer margins, and consumer behavior heading into 2026.