US-built vehicle prices drop $200 YoY, imported vehicle prices rise.

• Imported vehicle prices rise • US-built vehicle prices drop $200 on average • Federal policy shifts reshape new and used car market • Cars.com reports based on consumer demand data and vehicle supply • SAAR spikes above 17 million in March and April, slows down • Cars Commerce's aggregated platform data includes 140 million monthly consumer intent signals • Cars Commerce's platform data covers retail websites, trade and appraisal solution and wholesale auction platform.

Federal policy shifts, including tariffs and expiring federal EV tax credits, are reshaping the new and used car market, according to the latest Industry Insights 1H Report from Cars.com Inc. [1]. The report, based on consumer demand data and vehicle supply data from millions of new and used vehicles on its marketplace, reveals significant changes in pricing and availability.

Imported vehicle prices have risen, with notable increases in prices from the U.K. and EU. Meanwhile, U.S.-built vehicle prices have dropped by an average of $200 since January. This trend is partly driven by consumer preferences to avoid tariff-related costs, with over 73% of consumers considering U.S.-built vehicles to mitigate added costs [1].

The report also highlights a significant slowdown in the SAAR (Seasonally Adjusted Annual Rate) in March and April, which spiked above 17 million but has since declined. This slowdown is attributed to pre-tariff buying activity and the expiration of the federal EV tax credit in September [1].

The entry-level vehicle segment, priced under $30,000, has seen a 13.6% share of inventory in the first half of 2025, down from 38% in 2019. This decline reflects the third consecutive month of inventory shrinkage and is primarily due to tariffs affecting foreign-built vehicles [1]. In contrast, the mid-range new car segment ($30,000 to $49,000) and the $70,000-plus segment have seen an increase in imported vehicles, indicating a shift in consumer preferences towards more expensive models [1].

The expiration of the federal EV tax credit is also a significant factor in the market. With the average new electric vehicle priced at $65,000, the tax credit is a critical purchasing factor for many buyers. According to a Cars.com survey, 53% of current EV owners cited the credit as a primary reason for their purchase, and 48% of EV shoppers are influenced by the incentive [1].

The used car market has rebounded, with prices rising nearly 3% in the first half of 2025. This increase is driven by a wave of trade-ins from the new-car buying boom in March and April, which was prompted by tariff-related concerns. The influx of newer, lower-mileage vehicles has contributed to a faster turnover rate, with the average time on dealer lots decreasing by nearly 5% year over year [1].

Cars.com's aggregated platform data, which includes 140 million monthly consumer intent signals from over 7,000 retail dealer websites and supply data from across its retail websites, trade and appraisal solution, and wholesale auction platform, provides a comprehensive view of the automotive market [1].

In summary, federal policy shifts and tariffs are significantly impacting the new and used car market. The expiration of the federal EV tax credit and the rise in imported vehicle prices are key factors influencing consumer decisions. Automakers and dealers must adapt their strategies to respond to these changes and maintain affordability and availability for consumers.

References:
[1] https://www.prnewswire.com/news-releases/tariffs-and-expiring-federal-ev-tax-credits-fuel-affordability-challenges-in-auto-after-h1-sales-boom-according-to-cars-commerces-industry-insights-report-302508495.html