Catalyst IQ State of the Industry: USED AND CERTIFIED USED VEHICLE SALES JUMP IN Q1 2026 AS VALUE-CONSCIOUS SHOPPERS SHY AWAY FROM HIGH-PRICED NEW VEHICLES
PR Newswire
GRAND RAPIDS, Mich., April 23, 2026
Hybrid and EV Sales Rise as Fuel Prices Escalate
GRAND RAPIDS, Mich., April 23, 2026 /PRNewswire/ — Car shoppers shifted away from new vehicles and toward the used and certified vehicle segments in Q1 2026 as rising prices, economic uncertainty and eroding consumer confidence impacted vehicle purchase decisions. The findings are part of Catalyst IQ’s quarterly State of the Industry Report, released today.
In Q1 2026, the average daily new vehicle movement dropped for the third consecutive quarter from 38,145 vehicles in Q2 2025 to 33,973 in Q1 2026—down 10.9%. Average used vehicle movement per day jumped 10.6% to 44,193 vehicles in Q1 2026 from 39,697 in Q4 2025. Certified used vehicles also rose by 8.7% quarter-over-quarter, to 5,767 in Q1 2026 from 5,307 in Q4 2025.
The average marketed price for a new vehicle was $49,800 in Q1 2026, up from $49,200 in Q1 2025. In addition, consumer confidence, as measured by the University of Michigan, has continued to erode, reaching 53.3 in March 2026, down 26.1 points versus two years ago and down by almost half from levels seen prior to the 2020 COVID pandemic.
“Depressed consumer confidence—exacerbated by geopolitical instability—is intersecting with renewed upward pressure on new vehicle pricing,” said Rick Wainschel, Vice President of Data and Analytics at Catalyst IQ. “The result is not a uniform slowdown, but a redistribution of demand—away from higher-cost new vehicles and toward more value-friendly alternatives.”
The shift from new to used was particularly pronounced in non-luxury vehicle segments. New non-luxury vehicle sales dropped 10.7% from a peak of 32,762 units per day in Q2 2025 to 29,251 units in Q1 2026. Non-luxury used vehicles jumped 11.2% quarter over quarter from 37,268 moved per day in Q4 2025 to 41,432 in Q1 2026.
Rising fuel prices also caused market shifts in Q1 2026. Hybrid vehicles saw a notable increase in sales velocity in Q1 jumping 33%, reflecting strong consumer interest in fuel efficiency without the trade-offs associated with full electrification.
EVs also posted gains of 49%, though from a smaller base and with more variability. In the current environment, hybrids are emerging as the more immediate and broadly accessible response to fuel cost pressure.
“Consumers are pursuing fuel efficient solutions,” Wainschel said. “Momentum for hybrids—which has already been positive over the past two years—accelerated, while EVs ticked upward from very low post-tax-credit levels.”
The report outlined several implications for both retailers and manufacturers for moving forward in today’s shifting market:
Implications for Retailers
- Lead with affordability: Payment-focused selling, financing flexibility, and value messaging are critical.
- Use incentives surgically: Target discounts where they drive conversion without eroding margin unnecessarily.
- Shift mix toward attainable price points: Entry-level and mid-tier offerings will outperform premium-heavy inventories.
- Support VINs with precision: Deploy targeted support for inventory that needs help to sell; maximize margin for inventory that doesn’t.
- Prepare for longer decision cycles: Consumers are more deliberate, requiring stronger follow-up and engagement.
Implications for OEMs
- Balance price and demand: Continued price increases risk further demand suppression.
- Refine incentive strategy: Efficiency matters more than volume—target segments under the most pressure.
- Support financing solutions: Reduced rates and creative financing will be key demand stabilizers.
- Focus on affordability innovation: Trim strategies, packaging, and feature sets should reflect current consumer constraints.
About Catalyst IQ
Catalyst IQ is an automotive marketing technology company that delivers datadriven intelligence and highefficiency advertising solutions for OEMs, regional associations, and dealerships. Launched in January 2026, Catalyst IQ unites the strengths of Adpearance, Fox Dealer, Search Optics, and ZeroSum.
Catalyst IQ supports more than 1,300 dealerships and serves as a certified digital marketing provider for 25 Tier 3 OEM programs, giving the company a deep footprint across the automotive retail ecosystem.
At the center of Catalyst IQ’s offerings is MarketAI®, the company’s proprietary automotive intelligence software. MarketAI® tracks nearly 20,000 franchise dealers and 99% of independent dealerships nationwide, delivering real time visibility into market conditions and shopper behavior. This intelligence powers Catalyst IQ’s marketing and advertising solutions across Tier 1, Tier 2, and Tier 3, helping automotive brands act faster, target smarter, and achieve stronger results at lower cost.time visibility into market conditions and shopper behavior. This intelligence powers Catalyst IQ’s marketing and advertising solutions across Tier 1, Tier 2, and Tier 3, helping automotive brands act faster, target smarter, and achieve stronger results at lower cost.
Catalyst IQ is headquartered in Ada, Michigan, with team members located across the United States.
Learn more at CatalystIQ.com.
Contact:
Mike DeVilling
WestShore Public Relations
(248) 875-4207
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SOURCE Catalyst IQ
