CarGurus Inc. has released its 2025 Recap and 2026 Outlook, analyzing key trends in the automotive market. The report highlights that rising ownership costs, tariff concerns, and a limited supply of late-model used vehicles drove consumer focus on affordability throughout 2025. With the expiration of EV tax credits, there was a sharp decline in new electric vehicle sales, while hybrid vehicles filled the gap, experiencing steady growth in both inventory and sales. Toyota models, particularly the Prius, RAV4 Hybrid, and Camry Hybrid, saw the highest interest among shoppers. Looking ahead to 2026, CarGurus expects affordability to remain a primary concern for buyers, with heightened cross-shopping among new, used, gas, EV, and hybrid vehicles. The upcoming year is anticipated to provide the first clear glimpse into natural EV demand without the influence of incentives.