Car Buyers are Changing Lanes: CarGurus Reveals Where Consumers are Finding Value

CarGurus (CARG) released its Q1 2026 Quarterly Review highlighting rising used-car demand, fuel-efficiency shifts, and affordability pressures.

Rhea-AI Summary

CarGurus (CARG) released its Q1 2026 Quarterly Review highlighting rising used-car demand, fuel-efficiency shifts, and affordability pressures.

Nearly new used cars (≤2 years) rose 24% YoY; 8–10 year and 11+ year models grew 4% and 7% respectively. New market days supply reached 73 days; hybrids show tightest supply at 47 days. Used EV sales climbed ~30% YoY.

Positive

• Nearly new sales +24% YoY
• Used EV sales ~30% YoY growth
• Hybrids tight supply: 47 days

Negative

• New vehicle MDS 73 days (above 60-day industry target)
• Share of new cars ≤$30k down 60% over five years

Argus Apr 7 session

+1.41% close to close Open Argus

Details

News Market Reaction – CARG

On Apr 7, the day this news came out, CARG closed 1.41% above the previous close.

Data tracked by StockTitan Argus for the Apr 7 session.

Market Context

This announcement highlights CarGurus’ Q1 2026 view that affordability and fuel efficiency are drivi...

Analysis

This announcement highlights CarGurus’ Q1 2026 view that affordability and fuel efficiency are driving used and nearly new vehicle demand, especially around the $30,000 price point. New vehicle market days supply at 73 days contrasts with tighter hybrid inventories, while EV and hybrid listing views have risen strongly. In context of recent AI product rollouts and solid 2025 results, investors may watch how these demand trends influence dealer adoption, traffic metrics, and future earnings disclosures.

Key Figures

Nearly new used sales growth: 24% YoY Budget threshold: $30,000 8–10 year models growth: 4% YoY +5 more

Nearly new used sales growth

24% YoY

Q1 2026, cars 2 years old or younger

Budget threshold

$30,000

Target price range for many shoppers

8–10 year models growth

4% YoY

Q1 2026 used vehicle segment

11+ year models growth

7% YoY

Q1 2026 used vehicle segment

New vehicle MDS

73 days

March 2026 market days supply vs 60-day target

Hybrid MDS

47 days

Tightest supply powertrain in March 2026

EV listing views change

31%

Increase in share of views for new EVs over last month

Hybrid listing views change

16%

Increase in share of views for new hybrids over last month

Historical Context

5 past events · Latest: Mar 19

5 events

1. Mar 19

   Market insights release

   24h Move

   +0.1%

   Shared tax-season car-shopping trends and tools to stretch refunds.

2. Feb 19

   Earnings results

   24h Move

   +3.3%

   Reported 2025 revenue and earnings growth with new buyback program.

3. Feb 11

   AI product launch

   24h Move

   -2.6%

   Expanded “Big Deal” campaign with new AI-powered shopping tools.

4. Feb 02

   Earnings date notice

   24h Move

   -9.0%

   Announced timing and access details for Q4 and full-year 2025 results.

5. Jan 22

   AI strategy update

   24h Move

   +1.5%

   Outlined 20-year milestone and AI-driven consumer and dealer tools.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

market days supply (mds), federal tax credits

2 terms

market days supply (mds) technical

"New vehicle market days supply (MDS), a measure of supply in relation to the current"

Market days supply (MDS) is the number of days a company’s current inventory would last at the present rate of sales, calculated by dividing on-hand stock by average daily sales. For investors, MDS signals demand and supply balance—low MDS can mean strong sales or potential stockouts, while high MDS can indicate weak demand or excess inventory—affecting revenue durability, cash tied up in inventory, and profit margins.

federal tax credits regulatory

"Used EV consideration has translated to demand, with sales up almost 30% YoY despite the expiration of federal tax credits."

Federal tax credits are dollar-for-dollar reductions in the amount of tax a business or individual owes, granted by the national government to encourage certain activities like clean energy, research, or hiring. Like a coupon that lowers your final bill, they directly improve cash flow and lower the real cost of projects; investors watch them because they can boost profits, speed payback on investments, and materially change a company’s valuation and growth prospects.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Growing used car demand and surging interest in fuel-efficient vehicles are creating new opportunities for shoppers and dealers alike

BOSTON, April 07, 2026 (GLOBE NEWSWIRE) -- CarGurus, the No. 1 most visited automotive shopping site in the U.S.¹, today released its Quarterly Review for Q1 2026, highlighting the key trends shaping the automotive market and where opportunities are emerging for car shoppers and dealers.

Affordability continues to drive consumer decision-making in 2026, with rising gas prices adding a new layer to considerations about the total cost of car ownership. Buyers are adapting by turning to nearly new used cars, fuel-efficient powertrains, and value-priced options. The result is a market with real momentum in several segments, even as new vehicle sales slow overall.

"Today’s consumers are being nimble, making carefully considered compromises to get into the vehicles they want at prices that work," said Kevin Roberts, Director of Economic and Market Intelligence at CarGurus. "Nearly new used vehicle sales are a bright spot this quarter as shoppers with a budget around $30,000 are now more open to lightly used models to expand their options — a smart move as the share of new cars available at that price point has dropped 60% over the last five years."

Key trends from the quarter include:

• Nearly new hits the sweet spot: Sales of nearly new used cars, 2 years old or younger, jumped 24% year-over-year (YoY) in Q1, driving the majority of the used market's growth. The nearly new models with the largest YoY sales growth show where shoppers are gravitating: compact body styles with an average price well under $30,000. Top sellers include the Chevrolet Trax, Jeep Compass, Kia K4, Toyota Corolla, and Nissan Sentra.
• Older models also drive demand: The other end of the age spectrum also showed strength this quarter for shoppers looking to stay closer to a $10,000 budget. Sales of 8- to 10-year-old models grew 4% YoY, and vehicles 11 years and older posted 7% growth.
• Affordability pressures make their mark on new: New vehicle market days supply (MDS), a measure of supply in relation to the current sales pace, reached 73 days in March, well above the industry target of 60. Hybrids carry the tightest supply of any powertrain at just 47 days, and options under $30,000 are at about 63 days, a sign that demand is strongest where price and efficiency meet. Toyota’s Grand Highlander Hybrid, Sienna, Grand Highlander, RAV4, and Corolla Cross are the lowest supply models, all offering efficiency at more attainable prices.
• Fuel-efficient vehicles gain momentum: Rising gas prices are driving interest in more efficient powertrains. Over the last month, the share of views on CarGurus for new EV listings increased by 31%, while hybrids were up 16% (based on a rolling seven-day average). The share of used EV views jumped by 40%, and used hybrids were up by 17%. Used EV consideration has translated to demand, with sales up almost 30% YoY despite the expiration of federal tax credits. Affordable models led used EV sales growth, with the Tesla Model Y, Hyundai Ioniq 5, Chevy Equinox EV, and Nissan Ariya seeing some of the biggest gains.

The full Q1 2026 Quarterly Review is available here with deeper insights on these findings.

About CarGurus, Inc.

CarGurus (Nasdaq: CARG) is the leading multinational automotive platform helping consumers and dealers confidently buy and sell vehicles. Founded in 2006 with a mission to bring more trust and transparency to car shopping, CarGurus is the No. 1 visited automotive shopping site in the U.S.¹ with the largest selection of inventory and network of dealers.² CarGurus’ unmatched selection, trusted automotive insights, and data-driven products and solutions support each shopper’s journey — from online research and shopping to in-dealership decisions — to empower them at every step. And, by translating data from billions of monthly site interactions, CarGurus provides dealers a personalized, predictive intelligence platform with software solutions that helps them run their businesses more efficiently and profitably at all stages of inventory acquisition and pricing, marketing, and conversion to sale.

CarGurus operates online marketplaces in the U.S., U.K., and Canada. The company’s network of brands includes PistonHeads, the largest online motoring community in the U.K.³, and Autolist, a U.S.- based online marketplace.

To learn more about CarGurus, visit www.cargurus.com.

¹
Similarweb: Traffic and Engagement Report (Cars.com, Autotrader.com, TrueCar.com, CARFAX.com Listings (defined as CARFAX.com Total Visits minus Vehicle History Reports)), Q4 2025, U.S.
²Compared to Autotrader.com (YipitData July/August 2025), Cars.com,
TrueCar.com (YipitData as of September 30, 2025), and CARFAX (Joreca as of September 30, 2025).
³Similarweb: Traffic Insights, Q4 2025, U.K.

CarGurus® and Autolist® are each a registered trademark of CarGurus, Inc., and PistonHeads® is a registered trademark of CarGurus Ireland Limited in the U.K. and the European Union. All other product names, trademarks, and registered trademarks are property of their respective owners.

Media Contact:
Maggie Meluzio
Director, Public Relations & External Communications
pr@cargurus.com

Investor Contact:
Kirndeep Singh
Vice President, Head of Investor Relations
investors@cargurus.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did CarGurus report about nearly new used car sales in Q1 2026 (CARG)?

Nearly new used car sales jumped 24% year-over-year in Q1 2026. According to CarGurus, these are vehicles two years old or younger and drove the majority of used-market growth, with compact models priced well under $30,000 leading demand.

How did used EV interest and sales change in Q1 2026 according to CarGurus (CARG)?

Used EV views rose 40% and sales increased about 30% YoY in Q1 2026. According to CarGurus, affordable EV models like Tesla Model Y and Hyundai Ioniq 5 led gains despite federal tax credit expirations.

What does CarGurus say about new vehicle supply and affordability in Q1 2026 (CARG)?

New vehicle market days supply reached 73 days, above the 60-day target. According to CarGurus, this indicates softer new-vehicle demand while hybrids and sub-$30,000 options show relatively tighter supply and stronger buyer interest.

Which vehicle age segments grew for value-focused buyers in Q1 2026 per CarGurus (CARG)?

Both nearly new and older budget models showed growth: ≤2-year models +24%, 8–10 years +4%, and 11+ years +7%. According to CarGurus, shoppers are balancing budgets by choosing lightly used and older affordable vehicles.

How are rising gas prices affecting car shopper behavior according to CarGurus (CARG)?

Rising gas prices increased interest in fuel-efficient powertrains, with new EV views up 31% and new hybrid views up 16% over the last month. According to CarGurus, buyers favor efficiency combined with affordability under $30,000.