CarGurus Highlights 36% Rise in Ownership Costs in 2025 Recap and 2026 Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 11 2025
0mins
Should l Buy CARG?
Source: Newsfilter
- Rising Ownership Costs: In 2025, the total cost of ownership for used vehicles increased by 36% compared to 2019, while new models saw a 29% rise, compelling consumers to prioritize affordability and impacting market supply and demand dynamics.
- Consumer Behavior Adjustment: Demand for new vehicles in 2025 focused on efficient powertrains and reliable brands, with the fastest-selling models like Toyota's hybrids averaging under 20 days on the market, indicating a strong preference for budget-friendly options.
- Hybrid Demand Growth: Following the expiration of EV tax credits, retail sales of hybrids surged by 33% in 2025, with new inventory rising nearly 18% year-over-year, reflecting consumers' shift towards more cost-effective choices.
- 2026 Outlook: New car pricing is expected to play a larger role in market trends in 2026, and as the chip shortage eases, the supply of late-model used vehicles may improve, potentially alleviating pressure on older models in the market.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CARG?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CARG
Wall Street analysts forecast CARG stock price to rise
9 Analyst Rating
6 Buy
3 Hold
0 Sell
Moderate Buy
Current: 36.980
Low
40.00
Averages
42.38
High
45.00
Current: 36.980
Low
40.00
Averages
42.38
High
45.00
About CARG
CarGurus, Inc. operates a multinational automotive platform helping consumers and dealers buy and sell vehicles. It operates marketplaces under the CarGurus brand in United States (U.S.), United Kingdom (U.K.), and Canada. CarGurus operates online marketplaces in the U.S., U.K., and Canada. Its network of brands includes PistonHeads, an online motoring community in the U.K., and Autolist, a U.S.-based online marketplace. Its marketplace allows consumers to search for new and used car listings from its dealers with a conversational search experience or through filter-based search built on its proprietary deal ratings. Its platform leverages AI-powered conversational search alongside proprietary pricing and algorithms to help consumers assess value and trade-offs. It offers a comprehensive suite of solutions organized around four pillars: inventory, marketing, conversion, and data. Its inventory products help dealers source and price vehicles via Sell My Car, IMV Scan, and PriceVantage.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investment Analysis of Stocks Under $50
- Golden Entertainment Risks: Golden Entertainment (GDEN) trades at $28.55, with a 1.8% annual revenue decline over the past five years indicating market positioning issues, and a low free cash flow margin of 6% limiting growth investment capabilities, suggesting caution for investors as management's investments are destroying value.
- CarGurus Growth Potential: CarGurus (CARG) at $35.82 per share has achieved a 26.2% annual compounded EPS growth over the last three years, with a platform that is difficult to replicate leading to an impressive 86% gross margin, while a 14.9 percentage point increase in free cash flow margin provides more resources for future growth initiatives.
- Fluence Energy Outlook: Fluence (FLNC) is priced at $12.27, boasting a 33.8% annual revenue growth over the past five years, indicating market share gains, with a 36.4% annual compounded EPS growth and decreasing cash burn showing a transition towards a self-sustaining business model.
- Market Environment Shift: The current market is rapidly separating quality stocks from expensive ones, with AI advancements prompting investors to adopt more forward-looking strategies to identify potential high-return stocks, and StockStory's weekly list of six new stocks offers crucial insights for investors.
See More
Amazon Autos Expands, Threatening Traditional Auto Listings
- Online Car Buying Trend: According to Allied Market Research, online car buying is expected to triple by the end of the decade, indicating a significant shift in consumer acceptance that could transform traditional auto sales models.
- Amazon's Market Strategy: Amazon Autos is rapidly expanding from a niche pilot to a broad vehicle marketplace, aiming to enhance online sales capabilities through partnerships with dealerships, thereby shortening sales cycles and improving efficiency, while dealers retain control over transactions.
- Changing Competitive Landscape: Amazon's entry poses a threat to companies focused on vehicle listings and dealership leads, such as Cars.com and CarGurus, as these companies, despite their strong brand presence, may struggle against Amazon's vast consumer reach.
- Dealers' Role: While Amazon is not yet selling cars directly or taking a cut from dealership transactions, its platform allows consumers to complete transactions online more easily, which could have profound implications for traditional dealerships and auto sales models in the future.
See More
Amazon Autos Rapidly Expands into Marketplace
- Market Expansion Plan: Amazon Autos is rapidly transitioning from a pilot program to a broad vehicle marketplace, with online car buying expected to triple by the end of this decade, indicating significant market potential and strategic value.
- Collaboration with Dealers: Rather than taking a cut from transactions, Amazon collaborates with dealerships to enhance their online presence and shorten sales cycles, thereby improving overall operational efficiency and strengthening dealers' competitive positions.
- Threat to Competitors: Amazon's entry poses a serious threat to vehicle listing and lead-generation companies like Cars.com and CarGurus, although it has yet to fully replicate Carvana's nationwide inventory and distribution capabilities.
- Shifts in Consumer Behavior: As consumers increasingly prefer online car buying, Amazon's model may transform traditional purchasing processes, with dealerships still controlling transactions and pricing, but Amazon's extensive reach will position it significantly in future markets.
See More
Surging Demand for Used Cars and Fuel-Efficient Vehicles Creates New Opportunities
- Used Car Sales Surge: In Q1 2026, sales of nearly new used cars (two years old or younger) increased by 24% year-over-year, driving significant growth in the used market, particularly for compact models priced under $30,000 like the Chevrolet Trax and Toyota Corolla, indicating a strong consumer preference for value.
- Demand for Older Models Rises: Among budget-conscious buyers looking around $10,000, sales of 8- to 10-year-old vehicles grew by 4% year-over-year, while vehicles over 11 years old saw a 7% increase, highlighting a robust market segment despite economic pressures as consumers seek affordable options.
- New Vehicle Supply Tightens: As of March, the new vehicle market days supply reached 73 days, significantly above the industry target of 60 days, with hybrids experiencing the tightest supply at just 47 days, reflecting strong consumer demand for affordable and efficient vehicles, particularly Toyota's hybrid models.
- Fuel-Efficient Vehicles Gain Popularity: Rising gas prices have driven a notable increase in interest for electric and hybrid vehicles, with new EV listings seeing a 31% increase in views, and used EV sales rising nearly 30% year-over-year, demonstrating a dual focus on environmental sustainability and cost-effectiveness among consumers.
See More
CarGurus and Tennant Executives Increase Stock Holdings
- Executive Purchase: CarGurus Director Stephen Kaufer bought 30,766 shares at $32.50 each on Tuesday, totaling a $1 million investment, indicating strong confidence in the company's future prospects.
- Market Reaction: Kaufer's purchase saw a 7.5% increase at the peak of Thursday's trading, with CARG reaching a high of $34.93, reflecting positive market sentiment towards the stock.
- Tennant Investment: On the same day, James T. Glerum Jr. purchased 8,163 shares of Tennant at $61.25 each, totaling approximately $499,980, marking his first buy in the past year and signaling optimism about the company's outlook.
- Stock Fluctuation: While Glerum Jr.'s investment is currently up about 4.4%, Tennant's stock dipped 0.1% on Thursday, indicating a cautious market stance towards its shares.
See More
CARG Stock 52-Week Highs and Lows Analysis
- Price Fluctuation Analysis: CARG's stock has a 52-week low of $24.65 and a high of $39.42, with the last trade at $34.13, indicating significant price movement within this range and reflecting market interest and investor sentiment changes.
- Market Trend Observation: The current price of $34.13 is approximately 86.7% of the 52-week high, suggesting strong performance in the market, which may attract more investor attention, especially influenced by technical indicators like the 200-day moving average.
- Investor Sentiment Assessment: The price fluctuations of CARG stock could impact investor decisions, particularly as the current price approaches the high point, leading investors to consider profit-taking or holding for potential further gains.
- Technical Analysis Signals: CARG's performance is closely tied to its 200-day moving average, and investors should monitor changes in this indicator to assess future price trends and market sentiment.
See More
Investment Analysis of Stocks Under $50
- Golden Entertainment Risks: Golden Entertainment (GDEN) trades at $28.55, with a 1.8% annual revenue decline over the past five years indicating market positioning issues, and a low free cash flow margin of 6% limiting growth investment capabilities, suggesting caution for investors as management's investments are destroying value.
- CarGurus Growth Potential: CarGurus (CARG) at $35.82 per share has achieved a 26.2% annual compounded EPS growth over the last three years, with a platform that is difficult to replicate leading to an impressive 86% gross margin, while a 14.9 percentage point increase in free cash flow margin provides more resources for future growth initiatives.
- Fluence Energy Outlook: Fluence (FLNC) is priced at $12.27, boasting a 33.8% annual revenue growth over the past five years, indicating market share gains, with a 36.4% annual compounded EPS growth and decreasing cash burn showing a transition towards a self-sustaining business model.
- Market Environment Shift: The current market is rapidly separating quality stocks from expensive ones, with AI advancements prompting investors to adopt more forward-looking strategies to identify potential high-return stocks, and StockStory's weekly list of six new stocks offers crucial insights for investors.
See More
Amazon Autos Expands, Threatening Traditional Auto Listings
- Online Car Buying Trend: According to Allied Market Research, online car buying is expected to triple by the end of the decade, indicating a significant shift in consumer acceptance that could transform traditional auto sales models.
- Amazon's Market Strategy: Amazon Autos is rapidly expanding from a niche pilot to a broad vehicle marketplace, aiming to enhance online sales capabilities through partnerships with dealerships, thereby shortening sales cycles and improving efficiency, while dealers retain control over transactions.
- Changing Competitive Landscape: Amazon's entry poses a threat to companies focused on vehicle listings and dealership leads, such as Cars.com and CarGurus, as these companies, despite their strong brand presence, may struggle against Amazon's vast consumer reach.
- Dealers' Role: While Amazon is not yet selling cars directly or taking a cut from dealership transactions, its platform allows consumers to complete transactions online more easily, which could have profound implications for traditional dealerships and auto sales models in the future.
See More
Amazon Autos Rapidly Expands into Marketplace
- Market Expansion Plan: Amazon Autos is rapidly transitioning from a pilot program to a broad vehicle marketplace, with online car buying expected to triple by the end of this decade, indicating significant market potential and strategic value.
- Collaboration with Dealers: Rather than taking a cut from transactions, Amazon collaborates with dealerships to enhance their online presence and shorten sales cycles, thereby improving overall operational efficiency and strengthening dealers' competitive positions.
- Threat to Competitors: Amazon's entry poses a serious threat to vehicle listing and lead-generation companies like Cars.com and CarGurus, although it has yet to fully replicate Carvana's nationwide inventory and distribution capabilities.
- Shifts in Consumer Behavior: As consumers increasingly prefer online car buying, Amazon's model may transform traditional purchasing processes, with dealerships still controlling transactions and pricing, but Amazon's extensive reach will position it significantly in future markets.
See More
Surging Demand for Used Cars and Fuel-Efficient Vehicles Creates New Opportunities
- Used Car Sales Surge: In Q1 2026, sales of nearly new used cars (two years old or younger) increased by 24% year-over-year, driving significant growth in the used market, particularly for compact models priced under $30,000 like the Chevrolet Trax and Toyota Corolla, indicating a strong consumer preference for value.
- Demand for Older Models Rises: Among budget-conscious buyers looking around $10,000, sales of 8- to 10-year-old vehicles grew by 4% year-over-year, while vehicles over 11 years old saw a 7% increase, highlighting a robust market segment despite economic pressures as consumers seek affordable options.
- New Vehicle Supply Tightens: As of March, the new vehicle market days supply reached 73 days, significantly above the industry target of 60 days, with hybrids experiencing the tightest supply at just 47 days, reflecting strong consumer demand for affordable and efficient vehicles, particularly Toyota's hybrid models.
- Fuel-Efficient Vehicles Gain Popularity: Rising gas prices have driven a notable increase in interest for electric and hybrid vehicles, with new EV listings seeing a 31% increase in views, and used EV sales rising nearly 30% year-over-year, demonstrating a dual focus on environmental sustainability and cost-effectiveness among consumers.
See More
CarGurus and Tennant Executives Increase Stock Holdings
- Executive Purchase: CarGurus Director Stephen Kaufer bought 30,766 shares at $32.50 each on Tuesday, totaling a $1 million investment, indicating strong confidence in the company's future prospects.
- Market Reaction: Kaufer's purchase saw a 7.5% increase at the peak of Thursday's trading, with CARG reaching a high of $34.93, reflecting positive market sentiment towards the stock.
- Tennant Investment: On the same day, James T. Glerum Jr. purchased 8,163 shares of Tennant at $61.25 each, totaling approximately $499,980, marking his first buy in the past year and signaling optimism about the company's outlook.
- Stock Fluctuation: While Glerum Jr.'s investment is currently up about 4.4%, Tennant's stock dipped 0.1% on Thursday, indicating a cautious market stance towards its shares.
See More
CARG Stock 52-Week Highs and Lows Analysis
- Price Fluctuation Analysis: CARG's stock has a 52-week low of $24.65 and a high of $39.42, with the last trade at $34.13, indicating significant price movement within this range and reflecting market interest and investor sentiment changes.
- Market Trend Observation: The current price of $34.13 is approximately 86.7% of the 52-week high, suggesting strong performance in the market, which may attract more investor attention, especially influenced by technical indicators like the 200-day moving average.
- Investor Sentiment Assessment: The price fluctuations of CARG stock could impact investor decisions, particularly as the current price approaches the high point, leading investors to consider profit-taking or holding for potential further gains.
- Technical Analysis Signals: CARG's performance is closely tied to its 200-day moving average, and investors should monitor changes in this indicator to assess future price trends and market sentiment.
See More
