CarGurus Releases 2025 Market Recap and 2026 Outlook Focusing on Affordability Trends in Automotive Industry

CarGurus highlights 2025 automotive market trends, emphasizing affordability, rising costs, and shifts toward hybrids as 2026 approaches.

Quiver AI Summary

CarGurus released its 2025 Recap and 2026 Outlook, emphasizing a significant focus on affordability in the automotive market shaped by rising ownership costs, tariff concerns, and a reduced supply of late-model used vehicles. The year 2025 saw consumers actively seeking out more affordable options, with hybrids and budget-friendly older models gaining popularity. Although average new vehicle prices remained stable, total ownership costs grew substantially compared to 2019, leading consumers to adjust their buying preferences. The expiration of EV tax credits resulted in a sharp decline in electric vehicle sales, while hybrid demand surged. Looking ahead to 2026, CarGurus anticipates that pricing trends will become clearer, especially regarding the impact of tariffs and the availability of late-model used cars. As affordability will continue to drive consumer behavior, there will likely be increased cross-shopping among all vehicle types.

Potential Positives

CarGurus reaffirms its position as the No. 1 most visited automotive shopping site in the U.S., highlighting its strong market presence.
The report indicates a significant rise in hybrid vehicle demand and views on the CarGurus platform, pointing to a successful adaptation to market trends by the company.
Insights on consumer behavior and automotive trends from CarGurus provide valuable data for both consumers and dealers, enhancing the company's reputation as a knowledgeable industry leader.
The anticipated improvement in late-model used supply presents an opportunity for CarGurus to meet consumer demand for "like-new" vehicles, potentially increasing transactions on their platform.

Potential Negatives

Concerns over rising vehicle ownership costs indicate potential long-term challenges for consumers, which may negatively impact demand and sales for CarGurus.
Decline in new EV sales of 66% post-expiration of EV tax credits suggests vulnerability in the electric vehicle segment, a significant area of focus for automotive retailers.
Potential upcoming pressure on pricing due to expected higher MSRPs for 2026 models could deter buyers, affecting overall market stability.

FAQ

What were the major influences on the automotive market in 2025?

The market was shaped by rising ownership costs, tariff concerns, and a late-model used supply crunch.

How did consumer behavior change in 2025?

Consumers actively pursued affordability, adjusting their expectations and favoring hybrids and budget-friendly models.

What types of vehicles saw increased demand in 2025?

Hybrids, smaller body styles, and budget-friendly older models experienced heightened demand from shoppers.

What impact did the expiration of EV tax credits have in 2025?

Following the expiration, new EV sales significantly declined while hybrid vehicle demand saw steady growth.

What trends should consumers watch for in 2026?

Shoppers should monitor 2026 model pricing, late-model used supply improvements, and the natural rate of EV demand without tax incentives.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$CARG Insider Trading Activity

$CARG insiders have traded $CARG stock on the open market 23 times in the past 6 months. Of those trades, 0 have been purchases and 23 have been sales.

Here’s a breakdown of recent trading of $CARG stock by insiders over the last 6 months:

SAMUEL ZALES (COO and President) has made 0 purchases and 6 sales selling 60,000 shares for an estimated $2,032,400.
JASON TREVISAN (Chief Executive Officer) has made 0 purchases and 2 sales selling 35,000 shares for an estimated $1,265,000.
JENNIFER LADD HANSON (Chief People Officer) has made 0 purchases and 2 sales selling 10,565 shares for an estimated $390,102.
DAFNA SARNOFF (Chief Marketing Officer) has made 0 purchases and 4 sales selling 11,027 shares for an estimated $388,871.
MATTHEW TODD QUINN (Chief Technology Officer) has made 0 purchases and 2 sales selling 7,578 shares for an estimated $268,223.
JAVIER ZAMORA (General Counsel and Secretary) sold 6,154 shares for an estimated $215,390
ZACHARY EMERSON HALLOWELL (CEO, CarOffer) has made 0 purchases and 2 sales selling 6,102 shares for an estimated $203,214.
GREG M SCHWARTZ sold 5,000 shares for an estimated $175,300
ISMAIL ELSHAREEF (Chief Product Officer) has made 0 purchases and 3 sales selling 3,781 shares for an estimated $128,749.

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$CARG Revenue

$CARG had revenues of $238.7M in Q3 2025. This is an increase of 3.17% from the same period in the prior year.

You can track CARG financials on Quiver Quantitative's CARG stock page.

$CARG Hedge Fund Activity

We have seen 164 institutional investors add shares of $CARG stock to their portfolio, and 205 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

CONGRESS ASSET MANAGEMENT CO added 1,903,207 shares (+inf%) to their portfolio in Q3 2025, for an estimated $70,856,396
ALTA FOX CAPITAL MANAGEMENT, LLC added 1,098,700 shares (+inf%) to their portfolio in Q3 2025, for an estimated $40,904,601
ARROWMARK COLORADO HOLDINGS LLC removed 1,071,003 shares (-28.6%) from their portfolio in Q3 2025, for an estimated $39,873,441
UBS GROUP AG added 942,199 shares (+158.2%) to their portfolio in Q3 2025, for an estimated $35,078,068
ORBIS ALLAN GRAY LTD added 765,791 shares (+inf%) to their portfolio in Q3 2025, for an estimated $28,510,398
WELLINGTON MANAGEMENT GROUP LLP added 594,670 shares (+6.6%) to their portfolio in Q3 2025, for an estimated $22,139,564
THRIVENT FINANCIAL FOR LUTHERANS added 552,459 shares (+7479.8%) to their portfolio in Q3 2025, for an estimated $20,568,048

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

$CARG Analyst Ratings

Wall Street analysts have issued reports on $CARG in the last several months. We have seen 3 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

BTIG issued a "Buy" rating on 09/05/2025
Oppenheimer issued a "Outperform" rating on 08/12/2025
Needham issued a "Buy" rating on 08/08/2025

To track analyst ratings and price targets for $CARG, check out Quiver Quantitative's $CARG forecast page.

$CARG Price Targets

Multiple analysts have issued price targets for $CARG recently. We have seen 8 analysts offer price targets for $CARG in the last 6 months, with a median target of $40.0.

Here are some recent targets:

Ronald Josey from Citigroup set a target price of $41.0 on 10/28/2025
Rajat Gupta from JP Morgan set a target price of $43.0 on 10/14/2025
Kunal Madhukar from UBS set a target price of $40.0 on 10/06/2025
Marvin Fong from BTIG set a target price of $35.0 on 09/05/2025
Jed Kelly from Oppenheimer set a target price of $40.0 on 08/12/2025
Chris Pierce from Needham set a target price of $44.0 on 08/08/2025
Robert Mollins from Gordon Haskett set a target price of $35.0 on 07/14/2025

Full Release

A heightened focus on affordability—driven by rising ownership costs, tariff concerns, and a late-model used supply crunch—defined the market in 2025, setting the stage for 2026

BOSTON, Dec. 11, 2025 (GLOBE NEWSWIRE) -- CarGurus, the No. 1 most visited automotive shopping site in the U.S. ¹ , today released its 2025 Recap and 2026 Outlook , highlighting the year’s top influences on the automotive market and expectations heading into the new year.

“If 2024 was defined by declining affordability, 2025 was the year consumers actively pursued it, shaping both shopping behavior and automotive supply trends,” said Kevin Roberts, Director of Economic and Market Intelligence at CarGurus. “Concerns over tariff costs and the expiration of the EV tax credit accelerated this trend as shoppers pushed to lock in pricing ahead of anticipated increases.

“This revealed clear areas where buyers saw value: hybrids; smaller, more affordable body styles; and budget-friendly older models. Looking to 2026, cost will remain a defining force. The used market is poised to continue meeting the needs of budget-conscious shoppers, while early signs of higher 2026 model-year prices will determine whether the year-long stability in the average new-car price starts to shift pricing and demand.”

Key themes for 2025 included:

Rising vehicle ownership costs amplified the hunt for affordability: Although average list prices remained relatively stable year-over-year, rising insurance, loan payments, and maintenance costs are adding pressure on consumer wallets. Compared to 2019, the total cost of ownership (TCO) of a used vehicle increased 36%, while TCO for a new model increased 29%.
Shoppers responded by adjusting expectations: The fastest-turning vehicles of 2025 show how consumers have adapted to the affordability challenge. New model demand centered on efficient powertrains and reliable brands. The fastest-selling new vehicles of 2025 were led by models like the Hyundai Palisade Hybrid and Toyota’s Grand Highlander Hybrid, Highlander Hybrid, and RAV4. Many sold in under 20 days on average, compared with more than 60 days for the typical new vehicle.

When considering used vehicles, smaller sedans, compact crossovers, and efficient, clean models led the pack. Fastest-selling used models like the Buick LeSabre, Chevrolet Cobalt, Model Y, Model 3, and Lexus NX Hybrid sold in roughly 25 to 30 days compared with about 40 days for the average used vehicle.
As EV tax credits expired, hybrids filled the gap : Shoppers rushed to complete EV purchases in Q3 before the September EV tax credit deadline, with Q4 then seeing a decline. New EV retail sales were down 66% in the two months following the credit expiration when compared to the two months leading up to it.

In the meantime, hybrid demand grew steadily, with new inventory rising nearly 18% year-over-year (YoY) and new retail sales growing 33%. Toyota led in hybrid interest this year across new and used. The most viewed new hybrids on the CarGurus platform were the Land Cruiser, Sequoia, Grand Highlander Hybrid, Sienna, Camry, and Prius. For used, shopper views gravitated toward the Prius, RAV4 Hybrid, Camry Hybrid, Sienna, and Lexus RX Hybrid.

What to watch in 2026:

While tariffs had a limited impact on average prices in 2025, 2026 may be a different story: 2026 model year pricing is positioned to play a larger role in setting trends in average new car pricing. Higher MSRPs on incoming 2026 models were partially offset this year by softer pricing and more incentives on remaining 2025 options, which helped keep overall new-vehicle pricing stable. As 2025 models phase out, the post-tariff pricing picture will become clearer.
Late-model used supply will give shoppers more “like-new” options : As the market moves further away from the chip shortage, late-model used supply could improve availability of 3- to 4-year-old vehicles, rebalancing the market and easing pressure on older models that have been doing the heavy lifting.
2026 will paint the clearest picture of EV demand: With tax credits gone, 2026 will provide the first clear look at the natural rate of EV demand without incentive-driven demand. With affordability expected to remain as a key consumer driver into 2026, cross-shopping across new, used, gas, EV, and hybrid options will remain heightened, with shoppers looking for the lowest all-in cost. Attractively priced EVs could benefit.

To learn about these trends and more, the CarGurus 2025 Recap & 2026 Outlook is available here .

About CarGurus, Inc.
CarGurus (Nasdaq: CARG) is the leading multinational automotive platform helping consumers and dealers confidently buy and sell vehicles. Founded in 2006 with a mission to bring more trust and transparency to car shopping, CarGurus is the No. 1 visited automotive shopping site in the U.S. ¹ with the largest selection of inventory and network of dealers. ² CarGurus’ unmatched selection, trusted automotive insights, and data-driven products and solutions support each shopper’s journey — from online research and shopping to in-dealership decisions — to empower them at every step. And, by translating data from billions of monthly site interactions, CarGurus provides dealers a personalized, predictive intelligence platform with software solutions that helps them run their businesses more efficiently and profitably at all stages of inventory acquisition and pricing, marketing, and conversion to sale.

CarGurus operates online marketplaces in the U.S., U.K., and Canada. The company’s network of brands includes PistonHeads, the largest online motoring community in the U.K. ⁴ , and Autolist, a U.S.- based online marketplace.

To learn more about CarGurus, visit www.cargurus.com .

¹ Similarweb: Traffic and Engagement Report [Cars.com, Autotrader.com , TrueCar.com , CARFAX.com
Listings (defined as CARFAX.com Total Visits minus Vehicle History Reports)], Q3 2025, U.S.
² Compared to Autotrader.com (YipitData July/August 2025), Cars.com, TrueCar.com
(YipitData as of September 30, 2025), and CARFAX (Joreca as of September 30, 2025).
³ Similarweb: Traffic Insights, Q3 2025, U.K.

Media Contact:
Maggie Meluzio
Director, Public Relations & External Communications
[email protected]

Investor Contact:
Kirndeep Singh
Vice President, Head of Investor Relations
[email protected]