CARS Stock: Insights Report Highlights Shifts in Automotive Market and Consumer Preferences
- Cars.com’s Industry Insights Report reveals significant shifts in new and used car markets due to changing federal policies.
- The report highlights a decrease in prices for U.S.-built vehicles while overall new vehicle prices rise slightly.
- Cars.com identifies a decline in affordable new vehicles and increasing consumer interest in American-made options amid economic pressures.
Cars.com Unveils Industry Insights Report Amidst Evolving Automotive Landscape
Cars.com Inc. has recently published its Industry Insights 1H Report, which sheds light on the significant changes occurring within the new and used car markets as a result of shifting federal policies. The report leverages data from over 29 million shoppers and countless vehicle listings to provide a comprehensive analysis of current trends. Notably, while the average price of new vehicles has seen a slight increase of less than $100 since January 2025, the prices for U.S.-built vehicles have actually decreased by nearly $200 on average. This paradox highlights a complex market where domestic vehicle pricing is responding uniquely amid broader economic pressures.
The report indicates a surge in the Seasonally Adjusted Annual Rate (SAAR) for vehicle sales, which briefly exceeded 17 million units in March and April. However, this uptick has since slowed down, reflecting a decline in pre-tariff purchasing activity. As consumers grapple with rising costs and the looming expiration of the $7,500 federal electric vehicle (EV) tax credit this September, affordability remains a pressing concern. In response to these challenges, more than half of surveyed consumers express a shift towards American-made vehicles, with over 73% considering this option to sidestep additional tariff-related expenses. This consumer behavior may signal a significant trend towards domestic production as a means of financial prudence.
A particularly alarming trend highlighted in the report is the shrinking inventory of new vehicles priced below $30,000, which has plummeted to a mere 13.6% market share, down from 38% in 2019. This decline is attributed mainly to tariffs impacting foreign-built models, with a staggering 92% of entry-level vehicles being manufactured outside the U.S. The implications of these tariffs vary by country, with imports from the U.K. experiencing price hikes exceeding $10,000, while those from China, Canada, and South Korea see price reductions. As consumers become increasingly price-sensitive, tools like Cars.com's American-Made Index are gaining popularity, offering shoppers a way to identify vehicles that contribute positively to the local economy amidst these changing market dynamics.
In addition to the report’s findings, Cars.com emphasizes the importance of adapting to evolving consumer preferences as the automotive industry navigates the second half of the year. The company's ability to assist consumers in making informed decisions will be crucial as affordability challenges persist. The response from automotive manufacturers to these shifts will ultimately shape the future landscape of the market, driving innovation and potentially redefining consumer engagement strategies. As Cars.com continues to provide valuable insights, its role in the industry becomes increasingly pivotal.
