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Will 2026 Be Another Tough Year for Fleet Budgets?

At Holman Drive, Ed Powell outlines why fleets should brace for another turbulent year, with rising repair costs, strengthening used values, and a shifting tech landscape that will affect budgets and planning through 2026 and beyond.

Chris Brown
Chris BrownAssociate Publisher
Read Chris's Posts
December 8, 2025

In the latest episode of Automotive Fleet on the Move, recorded at Holman Drive in Miami Beach, Chris Brown sits down with Ed Powell, director of consulting services at Holman, to take stock of the fleet environment as the industry moves into 2026. Powell describes the moment as a mix of stability and continued disruption: ordering has normalized, but cost pressures, tariffs, and talent shortages remain in play.


Used-vehicle values are also firming again as new-vehicle prices climb past $50,000 and tight model-year supply in certain segments continues to constrain the pipeline. Powell expects 2026 to bring further stabilization and possibly increases in resale values. He also stresses that technology and communication will be critical tools for navigating another potentially turbulent year.


Key Takeaways:

  • Ordering and allocations have stabilized, but tariffs and parts inflation continue to push repair costs higher.

  • Operating-cost inflation is easing from recent peaks but remains well above pre-pandemic norms.

  • Used-vehicle prices are rebounding as new-vehicle MSRPs hit record highs and late-model supply stays thin.

  • 2026 could bring modest resale-value increases as lease returns normalize.

  • AI tools, PM compliance tech, and embedded safety systems offer the strongest near-term ROI.

  • Fleet managers should expand planning horizons and communicate early to manage rising KPIs and budget risk.



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