On the Dash:
- Used vehicle prices top $30,000 for the first time since August 2023, according to the CarGurus May Intelligence Report.
- New vehicle year-over-year demand turns positive for the first time this year.
- Both new and used inventory continue rebuilding, though new inventory eased slightly from April.
Used vehicle prices crossed $30,000 for the first time since August 2023, while new vehicle prices climbed to their highest level since September 2023. At the same time, new vehicle demand posted its first year-over-year gain of 2026, according to the latest data from the CarGurus May Intelligence Report.
The numbers point to a market that’s recalibrating to higher prices rather than losing buyers.
Used vehicle prices top $30k
Average used vehicle prices hit $30,200 in May, up 5.1% year-over-year and the first time the market has topped $30,000 since August 2023. Vehicles priced above $30,000 gained share in the overall used market, while several lower-priced tiers lost ground.
Demand rose alongside prices. CarGurus Used Vehicle Demand Index climbed to 117.8, up 4.1% from April and 3.2% year-over-year, with both franchise and independent dealers seeing gains.
Used inventory continued to rebound after bottoming out in March. The CarGurus Used Vehicle Availability Index rose to 96.8.
New vehicle prices rise, so does demand
Average new vehicle prices reached $50,700 in May, up 1.7% year-over-year and the highest level since September 2023. The $30,000-$40,000 tier saw the largest year-over-year decline in share, as the overall mix continued drifting toward premium vehicles.
Demand for new cars also rose despite rising prices. The CarGurus New Vehicle Demand Index rose to 111.5, up 5.7% year-over-year and about 6.2% from April. It’s the first time demand has risen above 2025 levels this year.
New inventory eased slightly from April but stayed about 4.6% above year-ago levels. The CarGurus New Vehicle Availability Index fell to 78.5, with Stellantis remaining the fastest-growing OEM by inventory share.
Market showing stability
The data points to a market finding some footing after a rough start to the year. Rising used prices paired with rising used demand suggest buyers are absorbing higher costs rather than pulling back, particularly for newer, late-model inventory.
For dealers, the second half of 2026 may reward those who can balance inventory toward the segments seeing the strongest pull; newer used vehicles and incentive-eligible new models.
