On the Dash:
- Affordability pressures continue to push shoppers from new vehicles into older, higher-mileage used inventory.
- Hybrids remain one of the strongest growth segments, with used hybrid sales up 34% year to date.
- Tariffs, higher monthly payments and elevated interest rates are reinforcing OEM strategies focused on higher-margin vehicles.
Vehicle affordability challenges are reshaping consumer behavior as new-vehicle prices remain above $50,000 and used-vehicle prices top $30,000, according to a new market analysis from CarGurus.
Unlike the pandemic-era pricing surge driven by inventory shortages, today’s market reflects a longer-term shift fueled by higher vehicle costs, tariffs and changing automaker strategies. The average new-vehicle listing price reached $50,900 this spring, up 3.3% from December, while the average used-vehicle price surpassed $30,000.
New-vehicle sales lag
CarGurus found that new-vehicle sales no longer keep pace with population growth, as the U.S. sold 16.3 million new vehicles in 2025, down from 17.3 million in 2000. Adjusted for population growth, the market would have generated roughly 21 million sales at the same per-capita rate seen 25 years ago.
As affordability pressures mount, consumers are keeping vehicles longer. The average vehicle on U.S. roads now approaches 13 years old, and the number of vehicles in operation has grown by 76 million since 2000.
Automakers have increasingly focused on higher-margin SUVs and trucks, a strategy that rising tariffs have reinforced. Average import duties climbed from about $360 per vehicle in 2024 to roughly $3,700 year to date. Meanwhile, premium SUVs continue to sell quickly. CarGurus reported that full-size SUVs are turning nearly 16% faster than the national average, with vehicles such as the Cadillac Escalade-V and Toyota Sequoia often selling within 20 to 30 days.
Buyers turn to used vehicles & hybrids
Ultimately, numerous consumers are shifting to the used market in response. The price gap between new and used vehicles has widened from about $13,000 in 2015 to $21,000 in 2026, with sales of 7- to 10-year-old vehicles now accounting for 23% of used sales, up from 17% in 2020.
Hybrid demand is also accelerating, as used hybrid sales have increased 34% year to date, and models such as the Toyota Camry Hybrid, Honda CR-V Hybrid, Jeep Wrangler 4xe and Toyota RAV4 Hybrid have posted significant sales gains, according to CarGurus.
