CarGurus released its January 2026 Intelligence Report, showing a growing contrast in consumer demand and inventory levels between new and used cars.
Used sales demand surged to the highest level for January since 2021, up 7.2% year-over-year (YoY) on CarGurus’ Used Vehicle Demand Index. Inventory also climbed (up 5.2% YoY), but this hasn’t done much to improve prices. The average used car list price has held at $27.8K (up 1.5% from last year) with expectations that prices will rise more ahead of tax season.
New car demand started 2026 in low gear, with the CarGurus New Vehicle Demand Index down about 3% YoY. Affordability constraints (with the average new car price holding at nearly $50K), tough winter weather across many parts of the country, and falling EV interest have contributed to this softness. Inventory levels are down from December and compared to this time last year, suggesting automakers are being more deliberate in balancing supply against demand and margins.
“Used sales demand came out roaring in January, with savvy car buyers taking advantage of a month that typically offers lower prices, higher inventory, and less shopper competition before the market heats up during the tax-season rush,” Kevin Roberts, director of economic and market intelligence at CarGurus, said. “The key question now is whether this early surge signals sustained momentum. If this trend holds, it could set the tone for a competitive start to the spring selling season.”
