Cars.com Inc., operating as Cars Commerce Inc., has released its Industry Insights 1H Report, highlighting significant shifts in the automotive market driven by federal policy changes. The report indicates a rise in prices for imported vehicles, while U.S.-built vehicles have seen an average price drop of $200. The entry-level vehicle segment, heavily reliant on foreign-built cars, is shrinking, with its market share plummeting from 38% in 2019 to just 13.6% in the first half of 2025. This decline is attributed to tariffs affecting this segment, with the Honda Civic and Toyota Corolla being the only U.S.-built models in this category. Despite a 5.6% increase in overall new car units, the entry-level segment only grew by 3.9%. In contrast, the used car market is experiencing a rebound, with a nearly 3% rise in prices and a 2% increase in inventory, driven by a surge in trade-ins. This influx of newer, lower-mileage vehicles has reduced the average time cars spend on dealer lots by nearly 5% year over year.
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