Cars.com’s Industry Insights Report for the first half of 2025 contains some interesting findings as the early impacts of President Trump’s trade war come into focus, including that entry-level vehicles are becoming increasingly rare.
The data showed that vehicles priced under $30,000 averaged just a 13.6 percent market share in the first half of this year, down from 38 percent in 2019. Most models in that category are built outside the country, making them extremely sensitive to tariffs, with only the Honda Civic and Toyota Corolla offering U.S.-built models.
While higher-priced cars may eventually be impacted, they’ve actually increased market share this year, with the $70,000-plus segment growing by one percent in June. That said, pre-tariff vehicle inventory is running low at many stores, which will drive higher prices. Combined with a lack of desirable models on the lot, that could drive a slowdown in the more expensive vehicle segments.
The good news out of all of this is that used car supply climbed as people scrambled to buy cars before tariffs took hold. People buying cars in March and April drove a significant jump in trade-in activity, with inventory climbing by 2 percent year over year. Prices fell slightly as a result, and inventory moved relatively quickly, averaging just 52 days on the lot.
[Images: Toyota, Honda, Hyundai]
Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.
