Despite the ripple effects of President Donald Trump’s tariffs, policy shifts and persistent affordability concerns, the retail automotive market remains strong, according to recent findings in the CarGurus July 2025 Intelligence Report.
The surge in pull-ahead purchases has tightened new-vehicle availability, with inventory levels down 3% year-over-year. Despite over 75% of the available inventory being post-tariff pricing, new vehicle listing prices are 1% lower than they were pre-tariffs.
Here’s why it matters:
CarGurus‘ comprehensive report cuts through the noise to highlight the resilience of the U.S. automotive industry despite tariffs, trade shifts and affordability concerns.
Consumer demand remains steady. Most new-vehicle prices are lower than they were before tariffs, and used inventory levels are rising. With many OEMs holding prices steady and running incentive programs, now is an ideal time for dealers to move the metal.
These price levels are unlikely to last, especially as newer, higher-margin model years arrive. Dealers should take advantage of the current market conditions and maximize their profitability while they can.
Key takeaways:
- New-vehicle inventory is tightening, but average list prices are 1% lower than pre-tariff
New-vehicle inventory is down 3% year-over-year. However, despite the tightening inventory and over 75% of available vehicles reflecting post-tariff pricing, the average listing prices are roughly 1% lower than it was pre-tariffs, with the average coming in at $49,400. - Used-vehicle inventory is at an all-time high, but prices are rising
Used-vehicle inventory is up 9.2% year-over-year, primarily propped up by increased availability on franchise dealer lots. Despite the increased availability, prices are up 2.3% year-over-year due to a shortage of 3- to 4-year-old vehicles. - There will likely be a surge in used EV demand
With the federal EV tax credits set to expire on Sept. 30, the retail automotive industry will likely see an increased interest in used EVs. Roughly 34% of used EV listings in July qualified for the tax incentive and were priced at $25,000 or less. - Consumer demand is steady and stable
Despite the tariffs and affordability concerns, new-vehicle demand is up nearly 11% since June, and used-vehicle demand hit a four-year high. - JLR, Mitsubishi and Nissan show price divergence from industry average
While overall new-vehicle prices remain steady, select automakers stand out with significant variances. CarGurus found that JLR and Mitsubishi have experienced average price increases exceeding $2,000, while Nissan’s average prices have dropped by $2,590.
