Cars.Com Report - American Cars, EV's, Prices, More

Cars.com released its 2025 Automotive Trends Report , finding that car prices will remain stubbornly high in the new year and potential tariffs could add pressure.

Cars.com analyst David Greene reports that while inflation is cooling, sticker shock and affordability in the auto market remain key challenges for 2025.

Other findings include:

• The average new-vehicle price has stabilized at $49,000, slightly below its June 2023 peak of $50,300.
• New vehicles priced under $30,000 increased by 42% year over year in November.
• "American-made" is evolving, largely due to the Inflation Reduction Act, and potential tariffs on vehicle components would further complicate how American-made is achieved in the auto market
• Foreign automakers with U.S.-based manufacturing facilities now rival legacy Detroit brands, particularly in states like Alabama, Tennessee and Texas.
• The impact of the American-made definition in the electric-vehicle market is similar to the mainstream car market as domestic EV battery production is reshaping the landscape and boosting the presence of hybrids and EVs on Cars.com.
• American-Made Index:. And while EV inventories have grown, their high prices (averaging $13,000 more than the average new car) coupled with overproduction is leading automakers to slow production. Meanwhile, hybrids are gaining popularity as a more affordable and convenient alternative for those seeking fuel efficiency or testing the waters outside of a traditional ICE vehicle.