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CarGurus Report Finds Strength in Automotive Demand as Shoppers Lean Toward Value and Premium Options

1. CARG reports strong vehicle demand, driven by budget and luxury segments. 2. Used sales growth is mainly in vehicles under $30,000, 73% increase YoY. 3. Luxury car growth is significant, especially in the $70,000-$90,000 range. 4. EV sales surged before tax credit expirations, hybrids also showed strong growth. 5. CarGurus continues to lead as the most visited automotive shopping site.

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FAQ

Why Bullish?

CARG's growth in both used and luxury markets is positive, reminiscent of 2021 trends after demand rebounds post-COVID, indicating resilient performance.

How important is it?

The article highlights significant trends and CARG’s leadership position, indicating that ongoing demand will likely lead to stock performance improvements.

Why Short Term?

Immediate sales trends could reflect positively in upcoming quarterly earnings, with potential long-term growth tied to market adaptations.

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CarGurus Q3 2025 analysis shows a two-track market influencing growth, with budget-focused buyers opting for older used vehicles and affluent shoppers fueling new luxury demand BOSTON, Oct. 06, 2025 (GLOBE NEWSWIRE) -- CarGurus (Nasdaq: CARG), the No. 1 visited digital auto platform for shopping, buying, and selling new and used vehicles1, today released its Q3 2025 Quarterly Review. The analysis highlights how U.S. shoppers are adapting to a market shaped by ongoing affordability pressures. “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 Kevin Roberts, Director of Economic and Market Intelligence at CarGurus. “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.” Used car demand leans toward value: So far in 2025, most used retail sales growth has been in vehicles priced under $30,000 as buyers trade age and mileage to find value. This segment accounted for roughly 73% of the year-over-year (YoY) increase in used sales, with under $30,000 growth concentrated on vehicles aged seven years or older.The affordability picture varies by region: Shoppers focused on affordability may need to expand their horizons. According to CarGurus data, coastal states had the most used options under $20,000. California, Florida, Texas, and Virginia had the largest share of used inventory under $20,000, with at least 30% of listings falling in this range in September.Luxury contributing to new sales growth: While value-conscious shoppers seek affordability, luxury buyers helped fuel growth at the top of the market. Nearly half of new luxury growth YoY fell in the $70,000 to $90,000 range, with additional strength for vehicles listed at $120,000 and above. European brands are leading much of the upper-tier growth, but tariff exposure remains a factor to watch. As of September, over 40% of luxury listings were 2026 models, with an average price about 6% above comparable 2025 models. While consumers have accepted premiums so far, any additional tariff-related costs could test demand.Electric vehicle (EVs) see short-term gains: Ahead of federal tax credit expirations, new EV sales surged 53% quarter-over-quarter, while used EV sales rose 16%. Although EVs have been in the spotlight recently, hybrids continued on a strong trajectory in 2025. New hybrid sales are up about 50% YoY by both share and contribution to growth, with the strongest demand in the $30,000 to $40,000 range. With fewer EV launches on the horizon and expectations for muted EV demand, hybrids could see even greater momentum. The full Q3 2025 Quarterly Review is available here with deeper insights on these findings and more: https://cargur.us/1hnfR7 About CarGurus, Inc.CarGurus (Nasdaq: CARG) is a multinational, online automotive platform for buying and selling vehicles that is building upon its industry-leading listings marketplace with digital retail solutions. The CarGurus platform gives consumers the confidence to purchase and/or sell a vehicle either online or in person, and it gives dealerships the power to accurately price, effectively market, instantly acquire, and quickly sell vehicles, all with a nationwide reach. The Company uses proprietary technology, search algorithms, and data analytics to bring trust, transparency, and competitive pricing to the automotive shopping experience. CarGurus is the most visited automotive shopping site in the U.S.1In addition to the U.S. marketplace, the Company operates online marketplaces under the CarGurus brand in Canada and the U.K., as well as independent online marketplace brands Autolist in the U.S. and PistonHeads in the U.K. To learn more about CarGurus, visit www.cargurus.com. 1 Similarweb: Traffic Report [Cars.com, Autotrader, TrueCar, CARFAX Listings (defined as CARFAX Total visits minus Vehicle History Reports traffic)], Q2 2025, U.S. Media Contact:Maggie MeluzioDirector, Public Relations & External Communicationspr@cargurus.com Investor Contact:Kirndeep SinghVice President, Investor Relationsinvestors@cargurus.com

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