U.S. Auto Market Steady in Q3 as Policy Changes Influence Pricing and Production, According to Cars Commerce Q3 Industry Insights Report
Average new-car prices hold near $49,000 for the last two years as U.S.-built inventory climbs to 56% of dealer supply
CHICAGO, Oct. 31, 2025 /PRNewswire/ -- Cars.com Inc. (NYSE: CARS) (d/b/a "Cars Commerce Inc."), an audience-driven technology company empowering the automotive industry, today released its Q3 2025 Industry Insights Report, analyzing how incentives, inventory management and policy changes shaped auto market performance in the third quarter. Drawing from consumer demand data across Cars.com's more than 25 million in-market shoppers, as well as supply and pricing data from millions of new and used vehicles on its marketplace, this quarter's report also integrates 140 million monthly intent signals from Cars Commerce's dealer websites, trade-in platform and wholesale network to provide a comprehensive view of industry trends.
"U.S. new-car sales picked up in the third quarter as shoppers moved quickly to take advantage of incentives and the final days of the federal electric vehicle tax credit," said David Greene, principal industry analyst at Cars Commerce. "Automakers leaned on strategic promotions and disciplined inventory management to maintain momentum amid ongoing tariff uncertainty and rising production costs."
Pricing Holds Steady Across Segments
Average new-car prices remained near $49,000, up just 0.5% year over year, extending two years of consistent pricing. The stability reflects automakers' measured approach to inventory management and willingness to absorb tariff costs temporarily for a transitional period.
Within the mass-market segment, prices declined slightly (–0.2%) to just over $45,000, while luxury prices increased 3% to about $72,000, lifting the overall average even though luxury vehicles account for roughly 15% of total inventory.
"Even with tariffs and other cost pressures, pricing held remarkably steady," Greene said. "The slight rise in the overall average is more about mix and timing than market instability."
Automakers are rolling out 2026 model-year inventory earlier than in previous years. By the end of September, one-third of dealer inventory represented 2026 models — the highest September ratio in recent years. The accelerated transition allows automakers to recover tariff-related costs through updated pricing structures and destination fees.
More Vehicles Built in the U.S.
Production continued shifting toward U.S. assembly in Q3. U.S.-built vehicles accounted for 56% of dealer inventory in early October — an 8.9% increase from July. Imports from the European Union declined 12.2%, and U.K. imports fell 12.4%, influenced by a Jaguar Land Rover production shutdown in September following a cyberattack. Imports from Japan fell by 4.4%, while South Korean imports were down 1.4%.
"Production sourcing is evolving as manufacturers look to limit exposure to tariffs and supply disruptions," Greene explained. "The increase in U.S.-assembled vehicles is a structural shift we've been tracking since midyear."
Used and Wholesale Markets Remain Balanced
The used-vehicle market remained relatively tight, with inventory down 0.6% year over year and prices up 2.8% — the second consecutive quarter of price gains following a long period of declines. Vehicles averaged 50 days on lots, down from 55 earlier in 2025, indicating steady retail turnover.
In wholesale markets, prices declined 3.4% quarter over quarter as values continued to normalize. EVs saw the sharpest correction, with values down 10.4% quarter over quarter and 17% year over year, compared with smaller declines for gas-powered vehicles (–2.9% and –7.9%, respectively).
Download the full report: CarsCommerce.inc/IndustryInsights
About Cars Commerce
Cars Commerce is an audience-driven technology company empowering the automotive industry. The Company simplifies everything about car buying and selling with powerful products, solutions and AI-driven technologies that span pretail, retail and post-sale activities – enabling more efficient and profitable retail operations. The Cars Commerce platform is organized around industry-leading brands: the flagship automotive marketplace and review site Cars.com, digital retail technology and marketing services from Dealer Inspire, essential trade-in and appraisal technology from AccuTrade, a reputation-based dealer-to-dealer wholesale auction from DealerClub and exclusive in-market media solutions from the Cars Commerce Media Network. Learn more at www.carscommerce.inc.
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SOURCE Cars.com Inc.
