If you’re considering buying a car in 2026, you’re not alone. After a few years of fluctuating interest rates, changing vehicle prices, and tight inventory, many drivers across Houston and Stephenville are asking the same question: Is now the right time to buy—or should I wait?
The answer depends on a few key factors, including auto loan rates, local market conditions, and your personal financial situation. Here’s a breakdown to help you decide whether to buy, wait, or refinance in 2026.
1) Rate Trends and What They Mean
Auto loan rates remain an important factor for car buyers in 2026. While rates are more stable than they were in prior years, even small changes can have a noticeable impact on your monthly payment.
2025 vs. 2026 Rate Comparison
Compared to 2025, rates in 2026 show signs of leveling off rather than rising sharply. This stability can be good news for buyers who:
- Have strong credit.
- Are planning to shop for loan options.
- Can take advantage of credit union financing.
For example, a slightly lower rate or shorter loan term can save hundreds, or even thousands of dollars over the life of an auto loan.
Tip: Always compare rates with various financing sources before making a decision.
2) Local Market Overview: Houston & Stephenville
Vehicle availability and pricing can vary by location, so understanding your local market matters.
What We’re Seeing Locally in the Houston and Stephenville areas:
- New vehicle inventory has improved compared to recent years.
- Used car prices are more balanced, especially for certified pre-owned vehicles.
- Dealerships may be more willing to negotiate on price, trade-ins, or financing.
Local Dealership Tips:
- Shop multiple dealerships because prices can vary widely. That’s especially easy to do with our free Auto Shopping Tool.
- Get pre-approved before you visit the dealership so that you can focus on the total cost of the loan, not just the monthly payment. It also helps you stay in control of the car-buying process.
- Ask about incentives, manufacturer offers, or special financing.
3) How to Decide: Buy vs. Wait vs. Refinance
Every buyer’s situation is different. Here’s a simple way to think through your options.
Buy Now If:
- Your current vehicle needs frequent repairs.
- You’ve found a vehicle that fits your budget and needs.
- You qualify for a competitive auto loan rate.
Wait If:
- Your vehicle is reliable and paid down.
- Prices or rates don’t align with your budget yet.
- You’re working to improve your credit score.
Consider Refinancing If:
- You financed when rates were higher.
- Your credit has improved since you bought your car.
- You want to lower your monthly payment or shorten your loan term.
LEARN MORE about auto loan refinancing and how it could work for you.
Frequently Asked Questions
Will interest rates affect car buying in 2026?
Yes. Interest rates directly impact monthly payments, so buyers should compare financing options carefully.
Is it better to buy new or used in 2026?
Both options can make sense depending on pricing, inventory, warranty needs, and your overall budget.
How can buyers save money when purchasing a car?
Getting pre-approved, shopping for the best loan rates, negotiating the total price, and considering certified pre-owned vehicles can help.
Should I get pre-approved before shopping?
Yes. Pre-approval helps define your budget and gives you stronger negotiating power at the dealership.
Make a Confident Car-Buying Decision in 2026
Whether you’re buying your next vehicle or looking to refinance, understanding your options is key. Members Trust offers competitive auto loans in Houston and Stephenville, along with local guidance you can trust—so you can move forward with confidence.
COMPARE RATES and explore your options today.