CarGurus Inc., the leading digital auto platform, has released its Q3 2025 market analysis, revealing a two-track automotive market in the U.S. Amid ongoing affordability pressures, value-focused consumers are driving growth in older, budget-friendly used cars, particularly those priced under $30,000 and aged seven years or more. This segment accounted for about 73% of the year-over-year increase in used vehicle sales, with coastal states like California, Florida, Texas, and Virginia offering the largest selection of used cars under $20,000. Conversely, affluent buyers are fueling demand for new luxury vehicles, especially in the $70,000 to $90,000 price range, with European brands leading the way. Over 40% of luxury listings are already for 2026 models, which are priced about 6% higher than their 2025 counterparts. Electric vehicles have seen short-term gains, with new EV sales jumping 53% quarter-over-quarter ahead of federal tax credit expirations, while hybrid vehicles continue to grow in popularity, especially in the $30,000 to $40,000 range. CarGurus notes that the market's balance between value-driven and premium segments will be critical to monitor in the coming months.