Car shoppers got a mixed picture from the auto industry this week. Wholesale used-car prices moved lower in September, but retail used vehicles remain expensive and affordable cars are still relatively difficult to find. New vehicles are not getting much easier on the wallet either, with the typical monthly payment climbing to about $770 in August.
At the same time, General Motors revealed more about the engines going into its next generation of Chevrolet Silverado and GMC Sierra pickups, taking a notably different approach from rivals that are leaning more heavily on hybrids.
Safety also remained in the spotlight, including a recall affecting more than 208,000 Volkswagen and Audi SUVs over a steering component that can corrode and break.
Here are the automotive stories that matter most to owners and shoppers this week.
Used-Car Wholesale Prices Are Falling Again
There was some encouraging news for used-car shoppers this week. Cox Automotive reported that its Manheim Used Vehicle Value Index fell 1% during the first half of September compared with August, bringing the index down to 206.2.
Wholesale values were also 0.4% below September 2025 levels. That is significant because it marks the first negative year-over-year comparison of 2026 and suggests that the stronger pricing seen earlier this year has largely faded.
The change was not equal across the market. Compact cars and electric vehicles were the only major segments still worth more at wholesale than they were a year earlier. Midsize cars, pickups and SUVs were below year-ago levels.
Wholesale supply is also improving. Cox measured 27.8 days of wholesale supply as of September 15, roughly 2.4 days more than a year earlier.
But Retail Used Cars Are Still Expensive
The catch is that lower wholesale prices have not yet translated into broadly cheaper cars on dealer lots.
Cox Automotive’s most recent retail data put the average used-vehicle listing price at $27,239 in August, up 7% from a year earlier and the highest monthly average since December 2022.
Affordable vehicles are particularly scarce. Used cars priced below $15,000 had only 29 days of supply in August, compared with 44 days for the overall used market. Inventory below $15,000 was down nearly 26% from a year earlier.
For shoppers, the latest wholesale decline is still a positive signal. Dealer acquisition costs can eventually work their way into retail pricing, particularly if inventory continues improving. But buyers looking for inexpensive used cars should not expect prices on dealer lots to suddenly collapse.
See the latest Manheim used-vehicle market data from Cox Automotive.
GM Goes Bigger on V8s and Diesel for the Next Silverado and Sierra
General Motors revealed more details this week about the powertrains that will define its next generation of Chevrolet Silverado and GMC Sierra pickups.
The redesigned 2027 Silverado 1500 and Sierra 1500 will offer new sixth-generation 5.7-liter and 6.6-liter naturally aspirated V8 engines. The 5.7-liter produces 402 horsepower and 428 lb-ft of torque, while the larger 6.6-liter produces 481 horsepower and 501 lb-ft.
GM is also keeping its 3.0-liter Duramax turbodiesel in the light-duty trucks. The diesel produces 305 horsepower and 495 lb-ft of torque, and GM says an available larger fuel tank will allow more than 900 miles of highway driving between fill-ups.
That puts GM on a different path from its Detroit competitors. Ford discontinued the diesel F-150 and offers the PowerBoost hybrid, while Ram is developing an extended-range electrified pickup. GM is instead betting that diesel’s highway efficiency and towing characteristics will continue to appeal to truck buyers.
A New 8.3-Liter Duramax Is Coming to GM’s Heavy-Duty Trucks
GM followed that announcement by teasing an all-new 8.3-liter Duramax turbodiesel V8 for the refreshed 2027 Chevrolet Silverado HD and GMC Sierra HD.
GM has not yet released the new engine’s horsepower and torque figures, so buyers should wait for the complete specifications before comparing it with Ford’s Power Stroke or Ram’s Cummins diesel engines.
The broader direction is already clear, however. Despite the industry’s investments in electrification, GM is continuing to spend heavily on new internal-combustion engines for its most important truck lines.
See GM’s specifications for its new light-duty truck engines.
New-Car Payments Rise to About $770 a Month
New vehicles remain difficult to afford even as borrowing conditions show modest improvement.
The Cox Automotive and Moody’s Analytics Vehicle Affordability Index found that the estimated average new-car loan rate slipped slightly to 9.49% in August. Household incomes also increased from July.
Those improvements were not enough to overcome higher vehicle prices. The average new-vehicle transaction price rose to $50,090, and the estimated typical monthly payment increased 0.5% to $770.
A median-income household would need about 35.5 weeks of income to purchase the average new vehicle, according to the index.
There is some good news: affordability remains slightly better than it was a year ago because incomes have grown and borrowing rates are roughly comparable. But for shoppers, the larger lesson is that high vehicle prices remain a bigger obstacle than small month-to-month changes in interest rates.
See Cox Automotive’s latest Vehicle Affordability Index.
Recalls: Volkswagen, Audi and Hyundai
208,724 Volkswagen and Audi SUVs Recalled Over Steering Risk
Volkswagen Group of America is recalling 208,724 vehicles because a bolt connecting the steering rack to the subframe can corrode and break. If the bolt fails, the steering rack housing can break and potentially cause a loss of steering control.
The recall covers certain 2018 Volkswagen Tiguans, 2018-2019 Volkswagen Atlases and 2019-2021 Audi Q3s. Dealers will replace the right-side steering-rack mounting bolt free of charge. VINs included in the recall are already searchable through NHTSA, while owner notification letters are expected in November.
Hyundai Ioniq 9 Recalled Over Power-Folding Rear Seats
Hyundai is recalling 5,360 2026 Ioniq 9 electric SUVs in Limited, Calligraphy and Calligraphy Design trims because the second-row power seats may fail to detect a person while moving. A seat could continue moving after making contact, creating a risk that an occupant, particularly a child, could become trapped or injured.
The remedy involves updated seat-controller software, which can be installed over the air on eligible vehicles or by a Hyundai dealer. Until the update is completed, Hyundai advises owners to use caution with the powered second-row seats and keep children away from the seating area while the power-folding function is operating.
Owners of any vehicle can check for unresolved safety campaigns using their VIN through the federal recall database.
Check your VIN for open recalls at NHTSA.gov.
EV Inventory Is Starting to Look More Normal
The latest electric-vehicle market data from Cox Automotive suggests the U.S. EV market is gradually becoming less distorted by excess inventory and the expiration of previous incentives.
Both new and used EV sales increased from July to August, while EV inventory moved closer to inventory levels for gasoline and hybrid vehicles. More off-lease EVs are also entering the used market, expanding the number of secondhand electric cars available to shoppers.
Lower-priced EV models are gaining market share as well, helping narrow the price gap between electric vehicles and conventional alternatives.
For used-EV shoppers, growing off-lease supply is particularly worth watching. More three- and four-year-old EVs entering the market can create attractive purchase prices, although battery condition, remaining battery warranty coverage, charging compatibility and depreciation should all be considered before buying.
See Cox Automotive’s latest EV Market Monitor.
Quick Hits From the Auto Industry
- Honda Ridgeline camera investigation closes: NHTSA closed an investigation into rearview-camera failures involving 129,092 Honda Ridgeline pickups that had previously been recalled. After additional testing and owner surveys, regulators did not find evidence that the original recall repair itself was prone to failure, and no additional action was ordered.
- GM is adding more software to its trucks: The 2027 Chevrolet Silverado and GMC Sierra will debut GM’s new in-vehicle user interface, including expanded digital displays and over-the-air software updates. The system is intended to eventually spread to additional GM vehicles.
- Used EV supply continues expanding: More EVs are returning from leases, giving used-car shoppers a larger pool of relatively new electric vehicles to choose from. That additional supply could continue putting pressure on used-EV values.
- Subaru has new performance models coming: Subaru teased limited-edition versions of the 2027 WRX and BRZ ahead of a planned September 27 reveal. Full specifications have not yet been announced.
The Bottom Line
This week’s car news highlights an increasingly divided market.
Used-car wholesale values are finally moving below year-ago levels, but retail prices remain high, especially for the inexpensive vehicles many buyers need most. New-car shoppers face a similar problem: slightly lower borrowing rates have not been enough to offset transaction prices around $50,000.
Meanwhile, automakers are taking very different approaches to efficiency. EV inventory is becoming healthier and used-EV selection is expanding, while GM is making a major investment in new gasoline V8s and diesel engines for its next generation of pickup trucks.
For owners, the Volkswagen and Audi steering recall is the most important immediate safety development this week. Anyone driving an affected Tiguan, Atlas or Q3 should check the vehicle’s VIN rather than waiting for a recall letter to arrive.
Sources: Cox Automotive, Kelley Blue Book, General Motors, National Highway Traffic Safety Administration, Hyundai recall information and Reuters reporting. Pricing data represents market averages and individual vehicle prices will vary. Recall eligibility is VIN-specific.
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