CarGurus Q3 2025 Review: Navigating a Dynamic Automotive Market

According to Kevin Roberts, CarGurus' Director of Economic and Market Intelligence, the demand for both new and used vehicles remains robust. The report highlights how shoppers are adapting to ongoing affordability concerns. "Year-over-year sales trends uncover an interesting dynamic between two segments in particular: value-focused buyers targeting older, budget-friendly used cars and higher-income shoppers driving growth in new luxury models," Roberts stated. This dual focus between value-driven and premium segments will be crucial for market observers in the coming months.

The Q3 report indicates that the used car market is increasingly leaning towards value-seeking consumers. In 2025, vehicles priced under $30,000 accounted for approximately 73% of the year-over-year increase in used retail sales. Notably, this growth is predominantly seen in older vehicles, specifically those aged seven years or older, as buyers prioritize value over age and mileage.

CarGurus' data highlights significant regional variations in vehicle affordability. Coastal states such as California, Florida, Texas, and Virginia offer the most used options under $20,000, with these listings constituting at least 30% of the total inventory in September. This regional insight suggests that shoppers focused on affordability may need to broaden their search to find suitable options.

While value-conscious shoppers gravitate towards budget-friendly vehicles, the luxury segment has experienced notable growth. Nearly half of the year-over-year increase in new luxury vehicle sales occurred in the $70,000 to $90,000 range, with significant contributions from vehicles priced at $120,000 and above. European brands, in particular, are leading this upper-tier growth, although potential tariff impacts on pricing remain a concern.

As of September, over 40% of luxury listings were 2026 models, which typically command a 6% higher average price compared to their 2025 counterparts. Consumer acceptance of these premium prices will be critical, especially if further tariff-related costs emerge.

The electric vehicle (EV) market has shown remarkable short-term gains, particularly as consumers rush to take advantage of federal tax credits before their expiration. New EV sales surged 53% quarter-over-quarter, while used EV sales increased by 16%. Despite the current enthusiasm for EVs, hybrid vehicles also maintain a strong trajectory, with new hybrid sales up about 50% year-over-year in both share and contribution to overall growth. The strongest demand for hybrids is noted in the $30,000 to $40,000 range.

As the market anticipates fewer new EV launches and tempered demand forecasts, hybrids may capture an even larger share of the market.

The findings from CarGurus' Q3 2025 Quarterly Review highlight a complex automotive market characterized by evolving consumer preferences and regional disparities in affordability. As value-driven shoppers continue to seek budget-friendly options and luxury buyers push the upper limits of the market, stakeholders in the automotive industry will need to remain vigilant in monitoring these trends.

For those interested in a deeper dive into the data and trends highlighted in the report, the full Q3 2025 Quarterly Review is available on CarGurus' official website.

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