CarGurus Inc., the leading digital auto platform, has released its 2025 Mid-Year Auto Market Review, highlighting significant trends shaping the new and used vehicle market. The analysis reveals that consumer demand for affordability and fuel efficiency is increasingly influencing the industry amidst tariff uncertainties and economic fluctuations. Following a March tariff announcement, new vehicle sales surged by 48% year-over-year, leading to a 15% decline in affordable new car listings under $30,000. Despite these pressures, the average new vehicle price remains stable at approximately $49,600, though luxury SUVs have experienced notable price increases. Conversely, electric vehicles have seen price decreases. Hybrids, in particular, stand out, with a 43% increase in retail sales driven by strong demand and a decrease in average list prices by about $1,400. This reflects a growing consumer focus on practicality and affordability, with hybrids and gas models now frequently cross-shopped.
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