U.S. Auto Market Steady in Q3 as Policy Changes Influence Pricing and Production, According to Cars Commerce Q3 Industry Insights Report

Core Insights - U.S. new-car sales increased in Q3 2025, driven by consumer incentives and the final days of the federal electric vehicle tax credit [2] - Average new-car prices remained stable at approximately $49,000, reflecting a 0.5% year-over-year increase [2][3] - U.S.-built vehicles accounted for 56% of dealer inventory, marking an 8.9% increase from July [4] Pricing Trends - Mass-market vehicle prices slightly declined by 0.2% to just over $45,000, while luxury vehicle prices rose by 3% to about $72,000 [3] - The overall average price increase is attributed more to vehicle mix and timing rather than market instability [3] Production and Inventory - Automakers are introducing 2026 model-year inventory earlier, with one-third of dealer inventory being 2026 models by the end of September [3] - The shift towards U.S. assembly is a structural change aimed at reducing tariff exposure and supply disruptions [5] Used and Wholesale Markets - The used-vehicle market saw a 0.6% year-over-year decline in inventory, with prices increasing by 2.8% for the second consecutive quarter [5] - Wholesale prices decreased by 3.4% quarter over quarter, with electric vehicles experiencing a significant value drop of 10.4% [6]