Auto Market Review: What New- and Used-Car Shoppers Should Know

Key Takeaways for Car Shoppers

• New-car sales slowed in November 2025, but inventory stayed balanced as automakers adjusted production to match cooling demand.
• Average new-car prices rose modestly, driven largely by the earlier-than-normal arrival of higher-priced 2026 model-year vehicles.
• Mass-market vehicle prices remained mostly flat while luxury prices continued to climb.  
• The used-car market remained supply-constrained, with growth concentrated in higher-priced vehicles and fewer affordable options available.
• Used-car prices increased for the eighth consecutive month as limited supply kept vehicles selling quickly despite softer demand.

New Cars: Slower Sales, Stable Inventory and a Faster Shift to 2026 Models

Seasonally adjusted new-vehicle sales declined 5.5% year over year in November 2025, marking the second consecutive month of moderation after a strong stretch earlier in the year. Those earlier gains were driven in part by “pull-ahead” demand, as some shoppers moved purchases forward to avoid potential price increases tied to inflation and tariffs.

Despite softer sales, new-car inventory remained relatively stable, down 4.2% year over year, as automakers adjusted production to align with cooling demand. This balance is important for shoppers because it helps prevent both widespread shortages and sudden oversupply that can lead to volatile pricing. New vehicles spent an average of about 70 days on dealer lots, slightly fewer than a year ago, indicating that while fewer consumers are browsing casually, vehicles are still selling at a healthy pace.

New-Car Prices and the Accelerating Model-Year Shift

The average new-car list price reached approximately $49,700 in November, up 0.7% from the same time in 2024. A key driver of this increase is the faster-than-normal transition to 2026 model-year vehicles. By November, 2026 models accounted for more than half of new-car inventory, compared with a smaller share at the same point in 2024.

This accelerated shift helps explain why average prices are rising even as sales moderate. New model years typically come with updated pricing, and the earlier arrival of 2026 vehicles reflects broader cost pressures across the industry. While 2025 model-year vehicles sold faster than they did a year ago, the remaining units are aging on dealer lots, suggesting many shoppers are opting for newer 2026 models instead.

Mass Market Vs. Luxury: How the Trends Differ

Mass-market vehicles continue to account for the majority of new-car inventory. Inventory in this segment declined about 4% year over year, while prices remained nearly flat, increasing just 0.3%. Luxury vehicles followed a similar inventory trend, with slightly larger 5% year-over-year declines in supply. However, luxury prices increased 2.4% compared to last year, continuing a pattern of sustained price growth that has been in place since 2021. 

Used Cars: Tight Supply Keeps Prices Elevated

The used-car market remained supply-constrained in November, which is an ongoing trend rooted in years of underproduction during the 2021–22 chip shortage combined with the natural attrition of older vehicles as they fall out of serviceable condition. There was modest 2% year-over-year inventory growth, but rising new-car prices continued to put upward pressure on used-car prices. Inventory growth was driven largely by lower mileage, higher-priced vehicles, while the availability of lower-priced used cars continued to shrink.

Vehicles priced under $20,000 became harder to find, with inventory in that range declining 1.3% year over year. When these vehicles were available, they tended to have higher mileage than a year ago, reflecting the aging of the remaining affordable supply. 

Prices for used vehicles rose 2.7% compared to last year, marking the eighth consecutive month of year-over-year price increases. Even as overall demand softened, used vehicles continued to sell relatively quickly, averaging about 54 days on dealer lots — faster than a year ago.

Body-style trends also played a role. Inventory of used SUVs and pickup trucks increased, while used cars continued to decline as fewer sedans from prior model years remain in the market. This shift has further limited choice for shoppers seeking lower-priced, fuel-efficient transportation.

For consumers, the takeaway is that the used-car market remains tight. While selection has improved at higher price points, affordable used vehicles remain scarce, keeping prices elevated and limiting flexibility for budget-conscious shoppers.