Is Now the Time to Buy, Sell, or Trade In a Car?

New car buyers paid an average of $49,220 in May, $236 less than April - just 1.2% higher year-over-year 

Incentives totaled 7.1% of the average transaction price 

Luxury vehicles and high-end trims are skewing the average up - the average full-size truck buyer spent more than $66,000 despite starting prices in the low $40,000s 

The average used car sold for $26,918 in May - 6% higher than a year ago and the highest average since mid-2023 

Dealers now carry a 45-day supply, which should balance supply/demand by mid-summer 

Budget vehicles under $15,000 remain in short supply

76% of car shoppers say gas prices are influencing what vehicle they'll consider 

Hybrid shopping on KBB.com jumped 25% vs. Q4 last year; EV shopping is up 20% 

Imported vehicles saw price increases of $5,000-$8,900; domestic vehicles rose $1,600-$2,000 due to tariffs on materials like steel and aluminum 

Lenders approved 72.4% of applications with an average down payment of just 13.5% - the easiest loan qualification in nearly four years 

⚠️ Warning sign: nearly 6 in 10 buyers are rolling negative equity from old loans into new ones 

Sales of vehicles priced $25,000 or less have fallen 78% in five years - automakers offered 36 models in that range six years ago; today just four

Meanwhile, models priced $60,000+ grew from 61 in 2017 to 114 this year