CarGurus Report Finds Strength in Automotive Demand as Shoppers Lean Toward Value and Premium Options

Rhea-AI Summary

CarGurus (Nasdaq: CARG) Q3 2025 Quarterly Review finds a two-track U.S. market: value-focused buyers driving used-car growth while affluent shoppers lift new luxury demand.

Key data: roughly 73% of YoY used retail sales growth came from vehicles priced under $30,000 (mostly 7+ years old); coastal states had ≥30% of listings under $20,000 in September. New EV sales rose 53% QoQ, used EVs +16%, and new hybrid sales are ~50% YoY. Luxury listings show >40% 2026 models with average prices ~6% above 2025 models. Tariff exposure and fewer upcoming EV launches are noted risks.

Positive

• 73% of used sales growth came from vehicles under $30,000
• New EV sales +53% QoQ
• New hybrid sales ~+50% YoY
• Luxury listings: >40% 2026 models; avg price +6% vs 2025

Negative

• Affordability pressures push buyers to older, higher-mileage used cars
• Tariff exposure could pressure new luxury demand
• Fewer upcoming EV launches may limit future EV growth
• Affordability is uneven regionally; some areas lack <$20,000 options

News Market Reaction – CARG

-4.33%

5 alerts

-4.33% News Effect

-$162M Valuation Impact

$3.58B Market Cap

0.3x Rel. Volume

On the day this news was published, CARG declined 4.33%, reflecting a moderate negative market reaction. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $162M from the company's valuation, bringing the market cap to $3.58B at that time.

Data tracked by StockTitan Argus on the day of publication.

CarGurus Q3 2025 analysis shows a two-track market influencing growth, with budget-focused buyers opting for older used vehicles and affluent shoppers fueling new luxury demand

BOSTON, Oct. 06, 2025 (GLOBE NEWSWIRE) -- CarGurus (Nasdaq: CARG), the No. 1 visited digital auto platform for shopping, buying, and selling new and used vehicles¹, today released its Q3 2025 Quarterly Review. The analysis highlights how U.S. shoppers are adapting to a market shaped by ongoing affordability pressures.

“On the whole, new and used vehicle demand has remained strong, as sales growth data shows how shoppers are pivoting in response to an evolving market,” said Kevin Roberts, Director of Economic and Market Intelligence at CarGurus. “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. Altogether, the balance between value-driven and premium segments will be critical to watch in the months ahead.”

• Used car demand leans toward value: So far in 2025, most used retail sales growth has been in vehicles priced under $30,000 as buyers trade age and mileage to find value. This segment accounted for roughly 73% of the year-over-year (YoY) increase in used sales, with under $30,000 growth concentrated on vehicles aged seven years or older.
• The affordability picture varies by region: Shoppers focused on affordability may need to expand their horizons. According to CarGurus data, coastal states had the most used options under $20,000. California, Florida, Texas, and Virginia had the largest share of used inventory under $20,000, with at least 30% of listings falling in this range in September.
• Luxury contributing to new sales growth: While value-conscious shoppers seek affordability, luxury buyers helped fuel growth at the top of the market. Nearly half of new luxury growth YoY fell in the $70,000 to $90,000 range, with additional strength for vehicles listed at $120,000 and above. European brands are leading much of the upper-tier growth, but tariff exposure remains a factor to watch. As of September, over 40% of luxury listings were 2026 models, with an average price about 6% above comparable 2025 models. While consumers have accepted premiums so far, any additional tariff-related costs could test demand.
• Electric vehicle (EVs) see short-term gains: Ahead of federal tax credit expirations, new EV sales surged 53% quarter-over-quarter, while used EV sales rose 16%. Although EVs have been in the spotlight recently, hybrids continued on a strong trajectory in 2025. New hybrid sales are up about 50% YoY by both share and contribution to growth, with the strongest demand in the $30,000 to $40,000 range. With fewer EV launches on the horizon and expectations for muted EV demand, hybrids could see even greater momentum.

The full Q3 2025 Quarterly Review is available here with deeper insights on these findings and more: https://cargur.us/1hnfR7

About CarGurus, Inc.
CarGurus (Nasdaq: CARG) is a multinational, online automotive platform for buying and selling vehicles that is building upon its industry-leading listings marketplace with digital retail solutions. The CarGurus platform gives consumers the confidence to purchase and/or sell a vehicle either online or in person, and it gives dealerships the power to accurately price, effectively market, instantly acquire, and quickly sell vehicles, all with a nationwide reach. The Company uses proprietary technology, search algorithms, and data analytics to bring trust, transparency, and competitive pricing to the automotive shopping experience. CarGurus is the most visited automotive shopping site in the U.S.¹

In addition to the U.S. marketplace, the Company operates online marketplaces under the CarGurus brand in Canada and the U.K., as well as independent online marketplace brands Autolist in the U.S. and PistonHeads in the U.K.

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

¹ Similarweb: Traffic Report [Cars.com, Autotrader, TrueCar, CARFAX Listings (defined as CARFAX Total
visits minus Vehicle History Reports traffic)], Q2 2025, U.S.

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

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

FAQ

How did CarGurus describe used-car demand in Q3 2025 for CARG investors?

CarGurus reported most used retail growth concentrated under $30,000, accounting for about 73% of YoY used sales growth.

What EV and hybrid trends did CarGurus report in Q3 2025 for CARG?

New EV sales surged 53% QoQ, used EVs rose 16%, and new hybrid sales were roughly +50% YoY.

What luxury market signals did CarGurus highlight that could affect CARG-listed inventory?

Nearly half of new luxury growth was in the $70k–$90k range; over 40% of luxury listings were 2026 models priced ~6% above 2025 models.

Which U.S. states had the largest share of used listings under $20,000 in September 2025?

California, Florida, Texas, and Virginia each had at least 30% of used listings under $20,000 in September.

What risks did CarGurus note that could affect automotive demand and CARG outlook?

CarGurus flagged tariff exposure as a potential headwind for luxury demand and noted fewer upcoming EV launches as a downside risk.

How should shareholders interpret the two-track market CarGurus described for CARG?

The report suggests a split market: value buyers support used-car volume under $30k, while affluent buyers drive new luxury sales—both trends may influence pricing and inventory mix.