The numbers don’t lie. Your dealership could be about to face one of the most challenging years in recent memory. Industry forecasts show U.S. light-vehicle sales dropping to 15.3 million units in 2026—down from 16.1 million in 2025. At the same time, new car prices are expected to jump 2-4% overall, with popular SUVs and trucks seeing increases of 3-5%.
The culprit? Tariffs on imported components and raw materials, combined with consumers who bought early to beat price increases. The result is a perfect storm: fewer sales, higher prices, and customers keeping their current vehicles longer.
But here’s the reality check every dealer needs: the dealerships that survive and thrive in 2026 won’t be the ones hoping for a market turnaround. They’ll be the ones who act now to strengthen their F&I departments, maximize fixed operations, and build competitive advantages through smart used car certification programs.
Used car sales: The certification advantage
The used car market is poised to remain strong in 2026, providing a bright spot amid declining new vehicle sales. Used vehicles are likely to become more attractive to budget-conscious buyers dealing with higher new car prices—and dealers will be faced with how to differentiate their inventory.
Dealers should look beyond traditional factory programs to comprehensive certification strategies that include “other makes and models.” Third-party certification programs let you certify a wider range of vehicles while building competitive advantages.
Partnering with recognized automotive brands adds critical consumer credibility. When customers see trusted industry names like MotorTrend® backing a certification program, it immediately elevates perceived value and reliability. This creates instant trust signals that go beyond your dealership’s own branding.
The real opportunity comes from combining other-make certification with additional benefits like a limited warranty, paintless dent repair, key protection, or other value-added benefits. This elevates your inventory above similar vehicles at other dealerships—helping you defend price while offering the buyer extra value. Plus, it tees up your F&I department to position upgrading coverage.
With affordability top of mind for consumers facing higher vehicle prices, certification programs help you maintain margins on used vehicles by demonstrating value and building consumer confidence. This becomes especially important as you compete for market share in a declining overall sales environment.
Your F&I department: The profit center that can save you
When new vehicle margins shrink and sales volumes drop, your F&I department can give your bottom line a needed boost. While consumers are facing higher monthly payments and elevated interest rates, savvy dealers are already investing in comprehensive training programs that go far beyond basic product knowledge.
The key difference between average and successful F&I departments comes down to one thing: selling on value instead of price. When your F&I professionals can clearly and compliantly explain how VSCs, GAP, and ancillary products help protect customers’ investments, those customers make informed buying decisions.
Your F&I team needs training in risk assessment, financing strategies, and compliance requirements that arm them with the tools they need to thrive in this market. Assessing each team member and then creating a training plan to address deficiencies or opportunities can make a measurable difference in per vehicle retail (PVR), products per deal (PPD), and overall F&I department gross.
Fixed operations: Your most stable revenue stream
Here’s some good news: although new vehicle sales are declining, your service department is positioned to thrive. Consumers who keep their vehicles longer due to affordability concerns mean more service opportunities. Dealers are expected to see profits from parts and service departments in 2026—even more so with effective training.
The most successful service departments create experiences that build customer loyalty. This means training your staff to identify additional service opportunities without appearing pushy, explaining the value of recommended maintenance, and following up to ensure customer satisfaction. Your service advisors need training on how to communicate technical issues in terms that customers understand, while your technicians require ongoing education on new vehicle technologies and diagnostic procedures.
The time to act is now
The dealers who thrive will be those who create clear, compelling stories about how their programs deliver more value than competitors. By building strong used car sales, F&I, and fixed operations departments through comprehensive training and implementing strategic certified pre-owned programs, you can not only survive but thrive despite the challenging new car sales environment forecasted for 2026.
