CarGurus Report Shows Automotive Affordability Continues to Drive the Market

Core Insights - The first quarter of 2025 has been significantly influenced by tariff news, leading to a shift in consumer urgency and an uptick in new car sales [2] - New car pricing remains a critical challenge, with vehicles priced under $30,000 making up only 13$3,300 to approximately $52,800 due to tariffs [2] - The used car market offers more options but presents trade-offs in terms of vehicle age and mileage, with the share of used sales under$20,000 dropping from 64% in Q1 2020 to 43% in Q1 2025 [3] Market Trends - Tariffs have triggered a late-month surge in new car retail sales, which increased by nearly 30% month-over-month following tariff announcements [3] - Imported models, particularly compacts and fuel-efficient options priced under $40,000, are in low supply, with popular models like Toyota's RAV4 and Honda's Civic facing inventory challenges [3] - The used electric vehicle (EV) market is growing, with average prices stabilizing around$36,000, and used EVs priced under $25,000 showing strong demand [3] Consumer Guidance - Shoppers are encouraged to utilize platforms like CarGurus for price tracking and inventory comparison to stay informed on market trends [3][4] - Pre-qualification for financing is recommended to enhance buying power and streamline the purchasing process [3] - Expanding the search radius for specific models can help consumers find better prices, as local demand can significantly impact car values [4]