Today’s car market is a complex environment for dealers and customers alike. Rising gas prices, tariffs, and a growing list of options have customers rethinking how they shop for their next vehicle.
Joining us on this episode of Inside Automotive for a closer look at what’s driving consumer behavior is Jenni Newman, Editor-in-Chief at Cars.com.
Tariffs top consumer concerns
Tariff uncertainty has become a fixture of the car-buying conversation, and consumers are not tuning it out.
“The sentiment around American-made, from an emotional choice, wanting to support your neighbor, to a strategic choice, something that’s financial and has much greater impact."
Newman says a recent Cars.com survey found that 58% of new car shoppers say tariffs are a primary concern. But Newman says the nature of their concern is shifting.
“Buying American” is no longer just a values statement. For a growing number of shoppers, Newman says, it’s simply a financial decision, driven by tariffs.
Gas prices fuel new interest in EVs & hybrids
Gas prices are another issue car buyers are considering today. As prices soar to near-record highs, shoppers are taking a closer look at EVs and hybrids.
Newman says Cars.com has seen a big jump in searches for new and used EVs.
“What we’re seeing at Cars.com is we’re seeing an increased interest in new EVs and used EVs. Roughly 25% increase between February, the end of February and the end of March,” Newman said.
The top trending new EV searches include the Volkswagen ID Buzz, the Chevy Equinox EV, the Ford Mustang Mach-E, and the Chevy Silverado EV.
Hybrids are seeing a lift too, with new hybrid searches climbing about 13% in the same time frame. Newman says shoppers aren’t waiting to see where prices go, they’re looking for ways to cut their fuel budget right now.
Used EV searches surge, with Tesla on top
While searches for EVs are up month-to-month, new EV searches are down more than a quarter compared to the same time last year. A big reason for that drop in demand is the expiration of federal rebates for new EVs, Newman says.
Meanwhile, searches for used EVs are up 8% year over year. It comes as a wave of off-lease EVs is hitting the used market with low miles and strong value.
"That's where the deals are hiding … with used EVs. Because we're seeing quite a bit of depreciation."
The top four most searched used EV models on Cars.com all belong to Tesla. Newman says it reflects something broader happening with car shoppers right now.
“They’re building a comfort level with technology that’s new to them,” Newman said.
Tesla’s long-established charging network gives buyers, even those purchasing a used vehicle, a ready-made support system that eases the transition into EV ownership.
How dealers can meet the moment
The surge in EV interest presents an opening for dealers, Newman says, but success depends on how they handle it.
“The value component is probably your biggest selling point right now,” she said. “Educating consumers on EV ownership is so important.”
Walking a customer through home charging options, explaining the maintenance savings, and asking the right questions about daily driving habits can turn an interested shopper into a confident buyer.
The signals from Cars.com are clear. Today’s shoppers are engaged, searching, and making informed decisions. Dealers who meet them where they are stand to make the most of this moment.
