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U.S. Auto Market Remains Stable in Q3 2025

In the latest report from Cars.com Inc., a key player in the automotive technology sector, the U.S. auto market has demonstrated remarkable stability for the third quarter of 2025. The Industry Insights Report highlights the factors shaping pricing and production dynamics, noting that U.S.-built vehicles constituted a significant part of dealer inventory, accounting for 56% as of early October.

Performance Summary

The average new-car price has maintained its position near $49,000, reflecting a modest year-over-year increase of just 0.5%. David Greene, principal industry analyst at Cars Commerce, pointed out that this steady pricing trend is a continuation of the last two years. He commented that automakers have strategically managed inventory while temporarily absorbing tariff-related costs to avoid volatility in pricing.

In the mass-market segment, prices have seen a slight decline of 0.2%, settling just above $45,000, while luxury vehicles have experienced a price increase of 3%, averaging around $72,000. This trend indicates that even with the pressures from tariffs, overall pricing remains consistent, influenced more by the types of vehicles being sold rather than a market upheaval. Greene emphasized that the pricing stability reflects intentional inventory management practices by automakers.

Shift in Production Towards U.S.-Built Vehicles

A significant shift is observed in production trends, with a growing emphasis on U.S. assembly. The share of U.S.-manufactured vehicles increased by 8.9% from July, leading to substantial changes in inventory sourcing. This shift comes in response to the ongoing trade issues and efforts by manufacturers to reduce exposure to disruptions in supply chains. Notably, imports from the European Union saw a decline of 12.2%, with a similar decrease in imports from the United Kingdom.

Moreover, electrification continues to play a central role in the market dynamics as shoppers rush to capitalize on the federal electric vehicle tax credits, which are reaching their conclusion. Automakers have thus employed more aggressive promotional strategies to bolster sales in this competitive landscape.

Trends in the Used Vehicle Market

The used vehicle market remained relatively balanced, with inventory levels dropping by 0.6% year-over-year. Despite this drop, prices in the used vehicle segment have risen by 2.8% for the second consecutive quarter, showing a steady retail turnover. Used vehicles showcased a quicker turnover rate, averaging 50 days on lots, a reduction from 55 days earlier in 2025.

However, the wholesale market experienced a downturn, particularly in pricing for electric vehicles, which witnessed a sharp quarter-over-quarter drop of 10.4%. In contrast, gas-powered vehicles only saw smaller declines, highlighting a market correction following inflated values during previous quarters.

Looking Ahead

As we approach the end of 2025, it is evident that the auto market is undergoing significant transitions due to policy changes and consumer behaviors. Automakers are likely to continue adjusting their production methods and pricing strategies to accommodate the evolving landscape. These insights underline the critical need for an adaptive approach amid the ever-changing auto market dynamics.

For a deeper dive into the data and trends, you can access the full report at CarsCommerce.inc/IndustryInsights.

About Cars Commerce: Cars Commerce is focused on enhancing the automotive retail experience through advanced technology solutions. With products that expedite the buying and selling process, the company aims to enable more profitable operations within the automotive industry. Their platform encompasses the well-known marketplace Cars.com, along with various innovative retail and appraisal technologies designed to meet modern consumer needs.