As we reach mid-year, the car market is thriving with pent-up demand driving sales. However, maintaining this momentum relies on strategic pricing to ensure you’re attracting those budget conscious shoppers grappling with rising costs of car ownership. While interest rate cuts aren't expected soon, there are still plenty of opportunities to connect with consumers looking for the best deals in their market.

Read on for some of the key mid-year trends and what they mean for you.

Stabilizing prices, growing inventory, and increased demand for affordable vehicles

• Used car prices have decreased by 8% year-over-year, averaging $28,496.
• New car prices have dropped by 3.3% year-over-year, averaging $50,214.
• New car inventory has increased by 68% and used car inventory by 5% year-over-year.
• Consumer searches for used cars under $10,000 increased by 26% year-over-year.
• New car searches for listings under $30,000 rose by 36%, though this segment only accounts for 13% of listings.

Takeaway: Make small pricing adjustments to make a big impact and earn improved deal ratings, getting your inventory in front of more shoppers. Log into your Dashboard to use the Pricing Tool and Next Best Deal Rating Reports to identify pricing opportunities in your market.

Rising popularity of compact sedans

• Demand for new compact sedans, with an average listing price of $29,600, increased by 17% year-over-year.
• Models like the Toyota Corolla, Honda Civic, and Nissan Sentra have seen sales growth up to 54% year-over-year.

Takeaway: Use real-time market data to determine what vehicles to buy and promote based on what consumers are looking for in your market.

Oversupply of new EVs moderating prices

• New EVs have an MDS of 117, leading to price adjustments.
• Average new EV prices have dropped by 9% since January 2023 to $63,102.
• Used EV prices have decreased by 24%, averaging $37,171.

Takeaway: Educate customers on the benefits of EVs and the potential savings on both new and used EV models. Check out more key findings from our latest survey on consumer perceptions around EVs.  

Affordable used inventory concentrated in certain states

• New York, Florida, and Maryland have the highest concentrations of affordable, high-quality used cars.
• Nationwide, 21% of listings are for vehicles priced $25,000 or under with less than 75,000 miles, whereas New York has 27% of such listings.
• South Dakota has the least affordable options, with only 10% of the market share.

Takeaway: Tap into digital wholesale tools that allow you to transact nationwide with dealers and consumers to source the types of inventory that are in high demand with price-conscious shoppers. Learn more about how CarOffer can help you buy, sell, and trade on the first dealer-to-dealer network for used cars and how CarGurus’ latest solution allows you to source inventory directly from our shoppers.