Episode #1384:
Today we’re talking about rising used-car prices led by hybrids and EVs, EV Auto becoming the first used EV dealer on Amazon Autos, and Bain’s forecast that the future auto market may be smaller, older, and a whole lot more competitive.

According the the Carfax July Car Index, prices are on the rise as the first half of 2026 brought meaningful price increases across nearly every used segment, with hybrids and EVs leading the charge as fuel price uncertainty pushes shoppers toward efficiency.

Used vehicle prices rose 1.3% in June, adding roughly $350 after a sharper 3% jump in May.
Since the start of 2026, used prices are up between $1,350 and $3,600 depending on segment.
Hybrids and EVs saw the biggest spike, up 11.9% or $3,600 year-to-date, with the average price reaching $34,117.
Vans and minivans also had a strong run, rising $2,000 since January and settling at $23,689.
CARFAX Editor-in-Chief Patrick Olsen said, “With new car prices so high, and used inventory growing only slowly, I think demand should stay high for the foreseeable future.”

Amazon Autos is getting a little more electric, and a little more used as longtime friend of the show, Alex Lawrence’s dealership chain, EV Auto has become the first used EV dealership to join the platform, giving shoppers access to its full inventory through Amazon while pushing the dealership model further into “shop wherever the customer already is” territory.

Alex says his full inventory is now available on Amazon Autos, with customers able to ship nationwide or pick up at one of its stores.
Alex expects the channel to grow “slow and steady,” not necessarily send cars flying off the digital shelves on day one.
The move gives EV Auto another customer entry point alongside stores, its website, TikTok Live sales, and now Amazon.
EV Auto is also launching Tesla Superchargers at its Brentwood, Tennessee store, becoming the first non-Tesla dealership with Tesla Superchargers on site.
Lawrence said, “I want you to be able to visit a store. I want you to be able to go to our website. You can buy a car live from me on TikTok. And now you can go to Amazon.”

Some forecasters are looking past today’s affordability crunch and seeing a smaller, tougher auto market ahead. Bain & Company says slower population growth, higher prices, changing consumer habits, and longer-lasting vehicles could push U.S. sales down by more than 2 million units by 2040.

Bain says the industry may no longer be able to rely on the historic 1% annual growth tied to population increases.
Younger buyers are entering the market more slowly, with fewer 16-year-olds licensed and 18-to-34-year-olds making up a shrinking share of new registrations.
Affordability remains a major pressure point, with new vehicle monthly payments up 30% over four years and nearly one in five new vehicles carrying payments over $1,000.
Longer vehicle lifespans are also reducing replacement demand, with vehicles reaching a record 12.8 years on the road in 2025.
Bain partner Mark Gottfredson said, “The competition in the U.S. is going to be ferocious. There’s too many automakers and too many brands competing for the consumers.”