Toyota continues to lead carmakers in demand, according to a CarGurus May intelligence report, which also showed an overall increase in demand for new and used vehicles from the previous month, despite price increases in both sectors.
Driving the news: With the overall new vehicle demand rising 6.2% from April and 5.7% year-over-year, Toyota owned the greatest share, nearing 20%.
Toyota joined GM as the only carmaker with over 15% share.
Toyota also had the fewest days on the market and was the only brand to be under 50 days.
What they’re saying: CarGurus’ Director of Economic and Market Intelligence, Kevin Roberts, told CDG News that this is (in part) because Toyota continues to match production with consumer demand.
“Toyota is largely the only automaker that has been able to sustain the level of supply metrics most automakers were targeting during the chip shortage,” Roberts said.
Regarding Stellantis: “What you’re seeing is Stellantis clearing out long-sitting vehicles and replacing them with fresher inventory, which helps to lower their overall average,” Roberts said.
“Their ability to add inventory while simultaneously lowering days on market is a signal that vehicles are moving, and aggressive incentive programs are likely a factor.”
New prices approach $51K: The average price of a new vehicle hit its highest level since September 2023 ($51,301), at $50,700. Prices were up $300 from April and $800 year over year.
Used demand, prices spike: Used vehicle prices jumped from $500 in the past month to $30,200, even as the inventory grew.
Roberts pointed to multiple factors leading to the increase in prices:
Used demand grew by 4.1% in April, pushing prices higher.
“A shift in inventory mix toward $30K-plus listings, while options under $20k have become harder to find,” Roberts noted.
Age shifts of used vehicles: Also in May, there was a slight increase in the number of vehicles 1 year or newer available in the used market.
Those newer models made up 15% of overall inventory. But that inventory does not match where demand is concentrated.
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Vehicles four years and older were in higher demand than newer models, but those 11 years and older actually accounted for the largest share of interest.
“It’s likely a mixture of consumers moving to older vehicles for affordability and the lingering hangover of the chip shortage, which means there are still fewer 3- to 5-year-old vehicles available than we were used to pre-COVID,” Roberts said. “The used market faces a supply squeeze through at least 2028 as softer new vehicle sales and reduced leasing during the COVID years are influencing the pipeline of available inventory for years to come.”
Hybrids remain fast movers: Carrying over from April, hybrid vehicles continued to be in high demand. As we covered, Kia, Hyundai, and Honda noted record months for hybrid sales in May reports.
“New retail hybrid sales were up 33.2% YoY, while used increased 42.2%,” Roberts said.
For dealers: New and used vehicle demand is up compared to a year ago, making it the first time for new demand to overtake 2025.
Still, the shortest days-on-market for new vehicles were for the least expensive vehicles, making affordability (unsurprisingly) a continued priority for shoppers.
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