Car Buying Tips and Tricks for 2026

Broadcast Retirement Network's Jeffrey Snyder discusses what you need to know before you buy a car in 2026 with automobile enthusiast Ray McGrath.

Jeffrey Snyder, Broadcast Retirement Network

Raymond, it is so great to see you. Happy New Year. Thanks for joining us this morning.

Ray McGrath, Automobile Enthusiast

Oh, thanks for having me, Jeff, and Happy New Year to you as well and all of your viewers.

Jeffrey Snyder, Broadcast Retirement Network

Thank you very much. Ray, I recall about a year ago, you and I had a conversation on the network about the cost of the average vehicle, the average vehicle cost, and it was somewhere in the neighborhood of $50,000. That's a lot of money, a lot for my budget, probably your budget, a lot of people's budget.

I want to talk about 2026. When you think about 2026 and some of the affordability challenges Americans are having, how does that frame buying a car? How does that put that in perspective?

Ray McGrath, Automobile Enthusiast

Unfortunately, Jeff, the price is still just a little over $50,000 on average. Interest rates, I know there's been a lot of push to try and get rates down. Rates haven't come down a whole lot.

It's still a difficult environment. I think one thing that's changed is some of the federal subsidies for electric cars has expired. That's made some of the electric cars a little bit more expensive.

Things have changed, but not all too much.

Jeffrey Snyder, Broadcast Retirement Network

I was going to ask you as a follow-up to that, we have a new administration about a year into that first term. You talked about electric vehicles. Are Americans still interested in electric vehicles?

What do you need to consider? Other than cost, what should you consider if you're thinking about gasoline versus electric?

Ray McGrath, Automobile Enthusiast

With electric vehicles, obviously you save on the price of fuel and some of the maintenance costs, but the insurance costs could be higher. The repair costs could be higher. In some ways, you could damage an electric vehicle.

If you damage the battery pack, it could be totaled. There's definitely those concerns. I think you need to look at the big picture, not just the out the door from the dealership, but what will it cost to insure one of these vehicles?

I know you saw the news. Ford discontinued their electric pickup truck. The new administration is not as heavily pro-electric as the previous administration.

That's caused the consumer or the manufacturers to pivot to some degree.

Jeffrey Snyder, Broadcast Retirement Network

How does this tie into gas prices? Affordability is a big issue. You live in New Jersey.

I live in North Carolina. Gas prices where I am have come down. They've come down nationally, and I'm assuming they've come down in New Jersey.

How has that framed the conversation?

Ray McGrath, Automobile Enthusiast

You know, I don't hear people complaining about gasoline as much. It has come down, but a lot of it has to do with supply and demand, although a barrel of oil is under $60 right now. In New Jersey, I can go to the Costco.

I just looked on the app. It's less than $2.50 a gallon. In that respect, the price of energy has come down.

What has gone up in New Jersey is, not to make it all about New Jersey, but is the highway tax to fund or a tax that's put on gasoline to fund repairs to the road. Now, electric vehicles in New Jersey, when they register, they have to pay a $250 charge just to support the infrastructure in the state. I would imagine other states are doing something similar to try and recoup some of the gas tax money they're not receiving from electric vehicles.

Jeffrey Snyder, Broadcast Retirement Network

Ray, one of the big decisions when you buy a new car is whether to buy it or finance it. You mentioned interest rates before, or lease it. Has the interest rate conversation and some of the cuts, has that maybe reframed that decision, or is it still a toss-up because the car company is going to make money regardless if you buy or sell?

Ray McGrath, Automobile Enthusiast

I think it's a toss-up in some ways, but what has changed is the residual value of what they thought these electric vehicles might be worth in three years. I think those valuations have come down, so it may be more expensive to lease an electric vehicle. At the same time, interest rates really haven't moved a whole lot.

Since the Fed started cutting rates in September, the 10-year Treasury is still around 4.2%, and we've seen a three-quarter percent cut just on the short-term rates, but that hasn't really flowed into the financing market or the 10-year returns, so to speak.

Jeffrey Snyder, Broadcast Retirement Network

Ray, your kids are all grown, but let's talk about those families out there that have their first-time drivers. I remember being 16 and wanting an inexpensive car. That quickly got the kibosh from my parents.

What are practical brands that people should think about in terms of safety, price, and maintenance?

Ray McGrath, Automobile Enthusiast

Some folks like large SUVs, but obviously there's the rollover risk. I think as a parent, you might be more concerned about safety, so maybe a sedan like an Accord or a Camry, something not quite as exciting to a youngster, but basic safe transportation, and it gives them time to, just like investing where you need a full market cycle, you need to drive for a number of years under a variety of weather conditions, and it really helps to polish your driving skills. Unfortunately, I would think boring sedans are probably the safest bet for parents.

Jeffrey Snyder, Broadcast Retirement Network

You talked about driver safety. I want to ask you about maintenance. I know you do a lot of the maintenance on your own vehicles, but yourself and many of us don't have those skills or the ability to not only change the oil, but also take the oil somewhere to have it disposed of because you're not supposed to dump it into the trash or to the gutter, although probably some people are still doing that.

What about maintenance on the vehicle? Has that changed over 2025 to 2026?

Ray McGrath, Automobile Enthusiast

Unfortunately, it has. It's just gotten a lot more expensive. I think it's a big issue for a lot of folks, especially if you get a vehicle, if Consumer Reports doesn't give it a high quality rating and three months down the road someone's trying to sell you a third-party warranty, which maybe not a lot of repair shops honor.

It's a difficult question, Jeff, because repairs can be expensive, and I think a lot of folks just try and take the safe route, say, I'll just buy a Toyota. It's probably got a good long-term track record. I don't have to sink a lot of money into it.

I mean, cars now, the stereo system, just to replace it could cost $2,000, so it's expensive, and I don't know if there's a good answer there, Jeff, for you, unfortunately.

Jeffrey Snyder, Broadcast Retirement Network

Well, I don't think you can solve the problem. I think it's about awareness, Ray, and look, I think my perspective, as probably yours has and others, changed about vehicles over time. I used to like the fancy vehicle, but now that I'm on my own and I'm a little bit older, safety, and my wife drives it mostly, my priorities certainly have shifted.

Ray, we've got about a minute left, and we've talked about a lot of things this morning. I wonder if you could take the last minute and maybe summarize some of your key takeaways from our conversation.

Ray McGrath, Automobile Enthusiast

I think the biggest takeaway when you're looking at a vehicle is, you know, look at the full picture, not just the monthly payment, but what will be the cost to insure it, what's the maintenance schedule like, and I think it is important, it is very important to honor, follow the maintenance schedule, but really just look at the overall cost of ownership from licensing and registration and insurance, and then the terms, if you're going to take out a loan, do you really want a 72-month loan?

So, it's really looking at the big picture, and, you know, I don't think it's something you should reach for because cars are, for the most part, a depreciating investment, so you shouldn't overextend yourself for a vehicle.

Jeffrey Snyder, Broadcast Retirement Network

Very well said. Live your life to the fullest, buy things you can afford and within budget, and that's important. Ray, well said.

Always a pleasure talking to you. Thanks for joining us, and we look forward to having you back again very soon, sir.

Ray McGrath, Automobile Enthusiast

Thank you for having me, Jeff.