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Tariffs

Mid-Year Auto Market Analysis Reveals Tariff-Driven Sales Surge and Shifting Consumer Preferences

Strategic Insights

— 2 min read

The mid-year auto market analysis by CarGurus highlights the impact of tariff uncertainty, shifting inventory dynamics, and evolving consumer preferences on the new and used vehicle market. The report reveals that new vehicle sales spiked 48% year-over-year in the days after the March tariff announcement, with buyers racing to beat potential price increases. However, the affordable segment is showing lasting impacts, with listings for new cars under $30,000 dropping by 15% since late March.

Key Takeaways:

  • New vehicle sales spiked 48% year-over-year in the days after the March tariff announcement, driven by buyers racing to beat potential price increases.
  • Listings for new cars under $30,000 dropped by 15% since late March, with compacts and crossovers seeing the steepest declines.
  • The average new vehicle price is holding steady at approximately $49,600, despite over 60% of new vehicle listings being post-tariff inventory.
  • Model-level price changes tell a more nuanced story, with luxury SUVs seeing some of the largest price increases since tariffs went into effect in April, and electric vehicles (EVs) posting the biggest price decreases.
  • Aged new car inventory may offer value, with over 7% of new car listings being 2024 or older, and Ford trucks and SUVs among the top models with older model year supply.
  • Used inventory reaches multi-year highs, but value has been redefined, with 3- to 4-year-old models remaining scarce and priced at a premium due to lingering effects of pandemic-era production disruptions.
  • Hybrids continue to lead new vehicle sales growth, buoyed by strong demand and attractive pricing, with average list prices for new hybrids decreasing by about $1,400 year-over-year.
  • Hybrid and gas models are now the most commonly cross-shopped combinations, as shoppers increasingly prioritize practicality and affordability.

Statistics:

  • 48% year-over-year increase in new vehicle sales in the days after the March tariff announcement.
  • 15% decrease in listings for new cars under $30,000 since late March.
  • $49,600: Average new vehicle price.
  • 60%: Proportion of new vehicle listings that are post-tariff inventory.
  • 7%: Proportion of new car listings that are 2024 or older.
  • $1,400: Decrease in average list prices for new hybrids year-over-year.
  • 43%: Increase in retail sales of hybrids compared to 2024.

Sources:

  • GlobeNewswire (MIL-OSI), June 17, 2025
  • CarGurus 2025 Mid-Year Auto Market Review
  • Similarweb: Traffic Report, Q1 2025, U.S. Media Contact: Maggie Meluzio, Director, Public Relations & External Communications, pr@cargurus.com
  • Investor Contact: Kirndeep Singh, Vice President, Investor Relations, investors@cargurus.com

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