CarGurus Q1 2026 Quarterly Review: A Shift Toward Value and Efficiency

The press release highlights a growing trend where affordability is paramount in consumer decision-making, particularly as rising gas prices further complicate the total cost of car ownership. Kevin Roberts, the Director of Economic and Market Intelligence at CarGurus, noted that today’s consumers are demonstrating agility in their purchasing decisions. They are increasingly turning to nearly new used cars, fuel-efficient vehicles, and value-priced options.

"Consumers are making carefully considered compromises to get into the vehicles they want at prices that work," Roberts stated. This adaptability is particularly evident among shoppers with a budget around $30,000, who are now more inclined to consider lightly used models due to a significant decrease in the availability of new cars at that price point—down 60% over the past five years.

Sales of nearly new used cars—defined as vehicles two years old or younger—have surged by 24% year-over-year (YoY) in Q1 2026, contributing significantly to the overall growth of the used market. The compact body styles, with an average price well below $30,000, have been particularly popular. The Chevrolet Trax, Jeep Compass, Kia K4, Toyota Corolla, and Nissan Sentra emerged as top sellers in this category.

Interestingly, the demand for older models has also shown resilience. Sales of 8- to 10-year-old vehicles increased by 4% YoY, while cars aged 11 years and older saw a 7% growth in sales. This trend indicates that consumers are not only looking for newer options but are also willing to consider older models as budget-friendly alternatives.

The new vehicle market is experiencing notable shifts, with the market days supply (MDS)—a key measure of inventory relative to sales pace—reaching 73 days in March, significantly higher than the industry target of 60 days. This signals a supply-demand imbalance, particularly among hybrids, which have the tightest supply at just 47 days. Vehicles priced under $30,000 are moving quickly, with average MDS around 63 days. Notably, models like Toyota’s Grand Highlander Hybrid, Sienna, Grand Highlander, RAV4, and Corolla Cross are among those with the lowest supply, reflecting strong demand for affordable and efficient options.

Rising gas prices are driving an increased interest in fuel-efficient vehicles. CarGurus reported a 31% increase in views for new electric vehicle (EV) listings, while hybrid views rose by 16%. The demand for used EVs has also skyrocketed, with a jump of 40% in views, translating into almost 30% YoY sales growth, despite the expiration of federal tax credits. Top performers in the used EV category include the Tesla Model Y, Hyundai Ioniq 5, Chevy Equinox EV, and Nissan Ariya, reflecting consumers’ shift towards more affordable, efficient options.

CarGurus’ Q1 2026 Quarterly Review underscores a pivotal moment in the automotive market, as consumers adapt to economic pressures by prioritizing affordability and efficiency. With nearly new used cars and older models gaining traction, alongside a growing interest in fuel-efficient vehicles, the landscape is evolving. CarGurus continues to provide valuable insights into these trends, empowering both shoppers and dealers to navigate the changing market dynamics effectively.

As CarGurus remains committed to transparency and trust in the car shopping experience, stakeholders in the automotive industry will be watching closely to see how these trends unfold in the coming quarters.