Prices Climb, New Demand Slows for a Seventh Straight Month, and EVs/Hybrids Gain Momentum

Prices are back in the driver's seat. Used average listing prices pushed near $30k for the first time since August 2023, and new prices climbed back above $50k - a milestone we haven’t seen since August 2024. Underneath those headlines, used sales settled into a rhythm closely mirroring 2025, new sales fell year-over-year (YoY) for a seventh straight month as affordability headwinds keep pressure on buyers, and EVs and hybrids picked up real momentum as gas prices climbed. For dealers, affordability is still the constraint tying all of it together.

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Used: Prices Are Warming Fast

Average used listing prices have increased nearly 7% since the end of January, reaching roughly $29.7k and approaching $30k for the first time since August 2023. Stronger wholesale and consumer demand are part of it, but vehicle mix is doing some of the work, too. The share of listings under $20k dropped 8% YoY while $20k+ listings gained, with the $50k+ tier posting the biggest jump. Fewer affordable units in the mix is pulling the overall average higher.
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Sales moderated from the strong Q1 pace and are now closely tracking 2025, with used demand down slightly YoY in April. One-year-old and younger used vehicles posted the largest YoY sales gain with their share increasing  32% YoY, lining up with the broader affordability story: shoppers priced out of new still appear to be willing to stretch for near-new if the value equation works.
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Under the surface, there's a divergence by dealer type. Independent dealers have been seeing stronger used demand and faster turns, while franchise dealers have had a tougher time finding the right used inventory, which has weighed on their used sales.
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One affordability wrinkle worth flagging: entry-priced inventory is going to be harder to come by as $20k+ supply is rising.

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New: Demand Down Against a Tough Comp, Supply Moves Higher

Average new listing prices topped $50k in April, up about 1% YoY. The $70k+ tier gained share while sub-$60k listings share shrank 2% YoY, continuing the drift toward a more premium new mix and squeezing affordability further.
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New demand was down nearly 8% YoY, with Toyota one of the few OEMs to post an increase, but context matters. Last year's tariff news pulled demand forward into April as shoppers rushed to lock in pre-tariff pricing.
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That mismatch is showing up most clearly in market days supply (MDS). New MDS was up over 16% YoY, almost back in line with 2024 levels, and rose YoY across every price range. The pressure isn't sitting evenly across the lot, though. Higher-priced inventory remains the area dealers need to watch most closely, with the upper tiers running well above the broader average.

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Power Shift: Fuel Efficiency Gets Another Look

Higher gas prices have sustained consumer interest in fuel-efficient vehicles, and the effects are showing up across pricing, sales, and supply.
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Used EV and hybrid prices kept climbing in April, extending a rebound that's been building over recent months as buyer interest absorbs more affordable supply. New EV and hybrid prices were largely flat overall, but used EV prices are now up nearly 7% from the end of February, with shoppers picking off the more affordable EVs and leaving a pricier mix on the lot.
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Sales line up the same way. Used EV sales are up 17% YoY and used hybrid sales are up 29% YoY, with growth accelerating through March and April. New EV retail sales remain down YoY after the tax credit changes, though the rate of decline is easing, and new hybrid sales are still up YoY, holding their place as one of the firmer spots in the new market.
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The clearest signal is on the inventory side. New EV MDS has dropped 46% from the end of February as gas prices have risen, and used EV MDS is down 32% over the same window. Earlier this year the concern was oversupply. If gas prices stay elevated, the better question may be whether the right EV and hybrid inventory gets harder to source.