A mid-year review by CarGurus reveals a mix of highs and lows as the industry navigates tariff impacts and shifting consumer demands for affordability.
The details: New vehicle sales spiked 48% year-over-year after the March tariff announcement as buyers rushed to beat potential price increases. Sales have since normalized, with average new car prices holding steady at approximately $49,600.
Listings for new cars under $30,000 have dropped 15% since late March, with compacts and crossovers like the Honda Civic and Mazda CX-30 seeing the steepest declines.
7% of new car listings are now 2024 models or older—approaching levels not seen since 2020. Ford trucks and SUVs rank among vehicles with the oldest model year supply on lots.
Despite a relatively stable used car supply overall, 3-4 year old models remain scarce and priced at a premium, while used vehicles under $20,000 consist mostly of older, high-mileage models.
Between the lines: The data shows a clear inventory mismatch developing. Affordable compact and crossover listings are disappearing while aging inventory accumulates. At the same time, hybrids are bucking the trend with 43% sales growth compared to 2024 and average list prices down $1,400 year-over-year.
What they’re saying: “So far this year, the auto market has been shaped by dramatic shifts in consumer behavior fueled by shifting policies and economic uncertainty. These pressures have amplified what car shoppers demand most: affordability and efficiency. While vehicle prices have mostly held steady despite tariffs, it remains to be seen how long the current balance of pricing and demand can last, especially as value-driven options become harder to find,” stated Kevin Roberts, Director of Economic and Market Intelligence at CarGurus.
Bottom line: The post-tariff rush gave the market a jolt, but the aftershocks are magnifying inventory imbalances.
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