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
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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.
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Analyst Views on CARG
Wall Street analysts forecast CARG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CARG is 42.38 USD with a low forecast of 40.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
6 Buy
3 Hold
0 Sell
Moderate Buy
Current: 33.420
Low
40.00
Averages
42.38
High
45.00
Current: 33.420
Low
40.00
Averages
42.38
High
45.00
About CARG
CarGurus, Inc. (CarGurus) offers a multinational, online automotive platform for buying and selling vehicles that offer both digital retail solutions and the CarOffer digital wholesale platform. The CarGurus platform enables consumers to purchase and/or sell a vehicle either online or in-person, and it gives dealerships the power to accurately price, instantly acquire, effectively market, and quickly sell vehicles, all with a nationwide reach. It operates through two segments: U.S. Marketplace and Digital Wholesale. The U.S. Marketplace segment provides marketplace services for customers within the United States. Digital Wholesale segment provides Dealer-to-Dealer and Instant Max Cash Offer (IMCO) services and products which are sold on the CarOffer platform. The Company operates online marketplaces under the CarGurus brand in Canada and the United Kingdom. It also operates independent brands, the Autolist and PistonHeads online marketplaces in the United States and the United Kingdom.
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.
U.S. Retail Sales Rise 0.6% Month-over-Month in November
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CarGurus CEO Jason Trevisan to Speak at 28th Annual Growth Conference on January 13
- Executive Participation: CarGurus CEO Jason Trevisan is scheduled to participate in a fireside chat at the 28th Annual Growth Conference on January 13, 2026, showcasing the company's leadership in the automotive shopping sector.
- Investor Relations: The event will feature a live webcast accessible from the company's Investor Relations page, ensuring that investors can stay updated on the latest company developments, thereby enhancing transparency and trust.
- Information Archiving: An archive of the presentation will be available on the company’s website for 90 days post-event, allowing investors who cannot attend live to review the content, further improving information accessibility.
- Market Position: CarGurus is recognized as the most visited automotive shopping site in the U.S., leveraging its extensive inventory selection and dealer network to continuously foster trust and transparency between consumers and dealers.
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