The used-vehicle market continues to show strength as affordability pressures push more consumers away from new vehicles. Kevin Roberts, Director of Economic and Market Intelligence at CarGurus, joins us on today’s CBT Live segment to break down the company’s August data, including used-vehicle demand, inventory trends, new-vehicle affordability and what dealers should watch heading into the fourth quarter.
Used demand remains a key opportunity for dealers as consumers search for alternatives to higher-priced new vehicles. Roberts said demand for used-vehicles increased 2.3% year over year in August, continuing a trend that has persisted throughout 2026. He notes that the growth is coming from both ends of the used market. While one- and two-year-old vehicles are attracting consumers who may have been priced out of new vehicles but still want something relatively new, eight-year-old and older vehicles are drawing shoppers focused primarily on affordability. Roberts said the trend reflects consumers adjusting their vehicle searches to find a payment and price point they can manage.
According to Roberts, affordability is reshaping the new-vehicle market, particularly at the lower end of the price spectrum. While vehicles priced below $30,000 attract the strongest consumer interest, they now only account for about 10% of listings. He notes that five or more years ago, vehicles priced at $35,000 or less represented roughly half of inventory. That shrinking supply is making it harder for dealers to meet demand from shoppers who prioritize affordability.
Heading into Q4, Roberts highlighted several factors dealers should watch, including persistent softness in new-vehicle demand and a relatively stable overall inventory compared to last year. A notable change is the decreased presence of 2027 model-year vehicles, which now make up about 12.5% of inventory, down from around 25% at the end of August in recent years. He also emphasized monitoring potential tariff impacts on vehicle prices, ongoing strong hybrid demand, and the expected seasonal decline in used-vehicle prices. While used-vehicle volume is expected to stay relatively high, dealers must ensure they stock the types of vehicles consumers are actively seeking.
