New-vehicle sales softened in the first quarter of 2026, with affordability concerns pushing more buyers toward used cars as consumers also grappled with rising gas prices, according to CarGurus.
Zooming in: The shift has pushed market days supply (MDS) for new vehicles to levels the industry has not seen in five years, as highlighted in the automotive shopping site’s latest market analysis.
New-vehicle MDS reached 73 in March, up from 66 a year earlier and well above the 27 days recorded in March 2022, when lots were constrained by the chip shortage.
Supply, on the other hand, has stabilized, but vehicles (especially at higher price points) are sitting longer, with sub-$30,000 units at 63.2 MDS versus 87.7 for vehicles in the $70,000 to $80,000 range.
Some context: Five years ago, sub-$30,000 vehicles made up more than 30% of new inventory; today, they account for 13%, down 60% since 2021 and another 4% year over year.
Hybrids carry the tightest supply at 47 days, compared with 75 for gas vehicles, 85 for BEVs, and 98 for PHEVs.
Why it matters: CarGurus’ latest report reinforces how affordability is shaping both inventory movement and shopper behavior, putting more pressure on stores to align inventory with budget-conscious consumers.
What we mean: With limited affordable new inventory and rising national gas prices weighing on purchase decisions, more buyers turned to used vehicles in Q1.
The data shows that sales of vehicles two years old or newer rose 24% YoY in Q1, with the fastest growth among models priced around $20,000.
The top performers were the Chevy Trax, up 267% YoY with an average price of $21,000; Jeep Compass, up 268% at $23,100; and Kia K4, up 4,868% off a small base at $20,100.
On the other end, sales of eight- to 10-year-old models rose 4% YoY, accounting for 11% of share change, while vehicles 11 years old and older posted 7% growth, accounting for 22% of share change.
Also worth noting: On CarGurus last month, new EV view share rose 31% and hybrids 16%, based on a rolling seven-day average, while used EV and hybrid views climbed 40% and 17%, respectively.
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What they’re saying: "Today’s consumers are being nimble, making carefully considered compromises to get into the vehicles they want at prices that work," said Kevin Roberts, Director of Economic and Market Intelligence at CarGurus, per a press statement.
"Nearly new used vehicle sales are a bright spot this quarter as shoppers with a budget around $30,000 are now more open to lightly used models to expand their options, a smart move as the share of new cars available at that price point has dropped 60% over the last five years."
Looking ahead: “The tension between new vehicle pricing and consumer budgets doesn't appear to be easing, for now,” the report said. “If new sales continue to soften and OEMs don't pull back on production, MDS could push higher. On the used side, the mix of age and mileage on lots may shift further toward older, higher-mileage stock as the nearly new pipeline eventually thins.”
Bottom line: Dealers may have more flexibility on the new-car side, but the bigger opportunity appears to be in used and hybrid inventory that better matches where consumer budgets are today. The challenge will be balancing aging new supply with a used market that could tighten if nearly new inventory starts to thin out.
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