After a year shaped by shifting incentives, volatile policy signals, and stubborn affordability challenges, the auto industry closed 2025 with more questions than answers. As dealers look ahead to 2026, understanding what truly moved the market, and what’s likely to stick, has never been more critical.

In this episode, we’re joined by Patrick Manzi, Chief Economist at NADA, to unpack the biggest forces that defined Q4 and the full year in auto retail. Patrick breaks down the sharp drop in EV sales following the expiration of tax credits, the surge in hybrid demand, and why inventory discipline kept incentives in check despite ongoing uncertainty. We also dig into pricing and affordability pressures, interest rate outlooks, tariff impacts, and what the evolving mix of new and used vehicles means for dealer strategy. Along the way, Patrick shares his expectations for the U.S. light vehicle market in 2026 and offers practical guidance on how dealers can position their inventory and operations for the year ahead.

Give this episode a listen for a clear-eyed economic perspective and actionable insights to help you navigate what’s next with confidence.

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Presented by The National Automobile Dealers Association

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