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

Rhea-AI Summary

Cars Commerce (NYSE: CARS) released its Q3 2025 Industry Insights Report showing a steady U.S. auto market as pricing, production sourcing and incentives influenced activity.

Key points: average new-car price near $49,000 (+0.5% YoY); 2026 models represented one-third of dealer inventory by end of September; U.S.-built vehicles were 56% of dealer inventory in early October; EV wholesale values fell 10.4% QoQ and 17% YoY. The report cites incentives, tariff effects and earlier model-year rollouts as drivers.

Positive

• None.

Negative

• EU imports declined by 12.2%
• U.K. imports declined by 12.4%
• EV wholesale values fell 10.4% QoQ
• EV values declined 17% YoY

Average new-car prices hold near $49,000 for the last two years as U.S.-built inventory climbs to 56% of dealer supply

CHICAGO, Oct. 31, 2025 /PRNewswire/ -- Cars.com Inc. (NYSE: CARS) (d/b/a "Cars Commerce Inc."), an audience-driven technology company empowering the automotive industry, today released its Q3 2025 Industry Insights Report, analyzing how incentives, inventory management and policy changes shaped auto market performance in the third quarter. Drawing from consumer demand data across Cars.com's more than 25 million in-market shoppers, as well as supply and pricing data from millions of new and used vehicles on its marketplace, this quarter's report also integrates 140 million monthly intent signals from Cars Commerce's dealer websites, trade-in platform and wholesale network to provide a comprehensive view of industry trends.

"U.S. new-car sales picked up in the third quarter as shoppers moved quickly to take advantage of incentives and the final days of the federal electric vehicle tax credit," said David Greene, principal industry analyst at Cars Commerce. "Automakers leaned on strategic promotions and disciplined inventory management to maintain momentum amid ongoing tariff uncertainty and rising production costs."

Pricing Holds Steady Across Segments

Average new-car prices remained near $49,000, up just 0.5% year over year, extending two years of consistent pricing. The stability reflects automakers' measured approach to inventory management and willingness to absorb tariff costs temporarily for a transitional period.

Within the mass-market segment, prices declined slightly (–0.2%) to just over $45,000, while luxury prices increased 3% to about $72,000, lifting the overall average even though luxury vehicles account for roughly 15% of total inventory.

"Even with tariffs and other cost pressures, pricing held remarkably steady," Greene said. "The slight rise in the overall average is more about mix and timing than market instability."

Automakers are rolling out 2026 model-year inventory earlier than in previous years. By the end of September, one-third of dealer inventory represented 2026 models — the highest September ratio in recent years. The accelerated transition allows automakers to recover tariff-related costs through updated pricing structures and destination fees.

More Vehicles Built in the U.S.

Production continued shifting toward U.S. assembly in Q3. U.S.-built vehicles accounted for 56% of dealer inventory in early October — an 8.9% increase from July. Imports from the European Union declined 12.2%, and U.K. imports fell 12.4%, influenced by a Jaguar Land Rover production shutdown in September following a cyberattack. Imports from Japan fell by 4.4%, while South Korean imports were down 1.4%.

"Production sourcing is evolving as manufacturers look to limit exposure to tariffs and supply disruptions," Greene explained. "The increase in U.S.-assembled vehicles is a structural shift we've been tracking since midyear."

Used and Wholesale Markets Remain Balanced

The used-vehicle market remained relatively tight, with inventory down 0.6% year over year and prices up 2.8% — the second consecutive quarter of price gains following a long period of declines. Vehicles averaged 50 days on lots, down from 55 earlier in 2025, indicating steady retail turnover.

In wholesale markets, prices declined 3.4% quarter over quarter as values continued to normalize. EVs saw the sharpest correction, with values down 10.4% quarter over quarter and 17% year over year, compared with smaller declines for gas-powered vehicles (–2.9% and –7.9%, respectively).

Download the full report: CarsCommerce.inc/IndustryInsights

About Cars Commerce

Cars Commerce is an audience-driven technology company empowering the automotive industry. The Company simplifies everything about car buying and selling with powerful products, solutions and AI-driven technologies that span pretail, retail and post-sale activities – enabling more efficient and profitable retail operations. The Cars Commerce platform is organized around industry-leading brands: the flagship automotive marketplace and review site Cars.com, digital retail technology and marketing services from Dealer Inspire, essential trade-in and appraisal technology from AccuTrade, a reputation-based dealer-to-dealer wholesale auction from DealerClub and exclusive in-market media solutions from the Cars Commerce Media Network. Learn more at www.carscommerce.inc.

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SOURCE Cars.com Inc.

FAQ

What was the average new-car price in Q3 2025 reported by Cars Commerce (CARS)?

Average new-car prices held near $49,000, up 0.5% YoY.

How much of dealer inventory was U.S.-built in early October 2025 according to the CARS report?

U.S.-built vehicles accounted for 56% of dealer inventory in early October 2025.

How did EV wholesale and used values change in Q3 2025 in the Cars Commerce (CARS) report?

EV wholesale values fell 10.4% quarter over quarter and EV values were down 17% year over year.

What share of dealer inventory were 2026 model-year vehicles by the end of September 2025 in the CARS report?

About one-third of dealer inventory represented 2026 model-year vehicles by end of September 2025.

Which import regions saw notable declines in Q3 2025 per Cars Commerce (CARS)?

Imports from the European Union fell 12.2% and U.K. imports fell 12.4% in the period reported.