On the Dash:
- Elevated vehicle costs and affordability concerns are top priorities for dealerships heading into NADA 2026.
- Softening EV demand and a pivot toward used EVs and hybrids are prompting adjustments in inventory and marketing strategies.
- Dealers are increasingly leveraging AI, predictive analytics, and streamlined financing to maintain sales and meet consumer expectations.
As dealerships prepare for this week’s NADA Show, leaders in the retail automotive industry say high vehicle prices and uncertain EV demand are shaping how they will approach automakers and policymakers in Las Vegas.
Affordability continues to dominate dealer concerns. During a CBT News Driving Solutions episode, Brian Kramer, Executive Vice President of Dealer Growth and Success at Cars Commerce, highlighted that affordability, differentiation, and operational efficiency are emerging as the most prominent and consistent challenges for dealers navigating 2026. He references the retailer’s recently published Pain Point Study, which underscores that consumers are sensitive to total payment costs and are adjusting purchase timing or opting for older models to manage financial strain.
Financing hurdles add another layer of complexity for dealerships, as Pete MacInnis, CEO of eLEND Solutions, also said in a Driving Solutions episode that outdated credit‑tier models and misalignment between lender decisions and dealership financing systems are costing dealers an estimated $4.7 billion in annual revenue loss. MacInnis explains that integrated digital tools that streamline credit, ID verification, and finance workflows can cut friction, accelerate deals, and improve profitability.
Meanwhile, EV demand has softened in the wake of expiring federal tax credits, creating a challenging environment for dealers as they balance inventory and sales strategies. Matt Weiss, Vice President of Market Analytics and Product Strategy at S&P Global Mobility, on Driving Solutions, noted that dealerships are facing an unprecedented mix of challenges in 2026, from rising vehicle prices to rapidly changing consumer preferences, a dynamic that has dampened new EV purchases. To adapt, many dealers are embracing used EVs and hybrid vehicles as more accessible alternatives for buyers.
Technology and data solutions are becoming essential tools in dealer toolkits. On Driving Solutions, Kerry Wise, Chief Marketing Officer at Lotlinx, outlined how AI and predictive analytics can help dealers move inventory faster and maximize sales opportunities. Wise said that focusing on data‑driven strategies helps dealers target the right customers and make smarter inventory decisions in a competitive market.
Nevertheless, industry observers also point to broader shifts influencing dealer strategy. Interviews and analysis on Driving Solutions and related CBT News reporting suggest that increased dealer focus on hybrid models and flexible payment structures reflects changing buyer priorities, even as full EV adoption remains a long‑term objective. Additionally, Urban Science data shared on CBT News highlights ongoing volatility in auto sales and consumer behavior, reinforcing the need for dealers to be agile and data-savvy.
At NADA 2026, dealers plan to press automakers for a wider range of trim options, competitive entry‑level pricing, and concerted marketing efforts that align with buyer expectations in a high‑cost environment. Several Driving Solutions guests emphasized that alignment between dealerships and OEMs on transparent pricing and consistent messaging will be critical to sustaining sales as market conditions continue to evolve.
