When it comes to cars, old is in.

In its Q3 2025 Quarterly Review, CarGurus found auto sales overall are holding up in the face of economic and affordability pressures, but the U.S. market has shifted toward older vehicles as consumers adjust to make the finances work.

“On the whole, new- and used-vehicle demand has remained strong, as sales growth data shows how shoppers are pivoting in response to an evolving market,” said CarGurus director of economic and market intelligence Kevin Roberts, the report’s author. “Year-over-year sales trends uncover an interesting dynamic between two segments in particular: value-focused buyers targeting older, budget-friendly used cars and higher-income shoppers driving growth in new luxury models.

“Altogether, the balance between value-driven and premium segments will be critical to watch in the months ahead.”

The report found a “steady rebound” is used retail sales, driven mostly by vehicles priced less than $30,000 — a segment that accounted for 72% of the growth over the past 12 months. CarGurus said almost half of its September listings in that price range were seven years old or older, generally priced around $13,600.

“Think roughly 2014 model years with six-figure miles,” Roberts said in the report, “that buyers increasingly accept to keep the monthly payment in reach.”

Affordability is an overriding issue in the market, the report said, with more car shoppers likely to be pushed from the new market to used cars. While that helps used sales in the short term, it could lead to inventory issues down the road.

Roberts said dealers wanting to provide a wide range of price points might have to “lean more on older inventory” as well as their service and parts departments as consumers try to keep their older vehicles running.

The report noted regional differences in the availability of lower-priced vehicles, with California, Florida, Texas and Virginia offering the largest share of used inventory under $20,000. All of those states had 30% or more of their listings in that price range.

The report said knowing where the percentage of lower-priced inventory is highest can help dealers plan their acquisitions and marketing campaigns in trying to match price with local demand.

With used cars capturing car buyers priced out of the new-vehicle market, high-end luxury vehicles powered growth on the new-car side. The report found almost half of the year-over-year increase in luxury sales came from units in the $70,000-$90,000 range, and vehicles priced $120,000 and up also had a strong showing.

As expected, electric vehicle sales soared ahead of the Sept. 30 federal tax credit expiration date with new EV sales up 53% and used EVs up 16% in the third quarter. The report also noted new hybrid sales rose 50% year-over-year, showing high demand in the $30,000-$40,000 price range, saying hybrid momentum could be building as EV demand softens without the tax credits.

The full report is available here.