CarGurus, Inc. (CARG): PESTLE Analysis [Nov-2025 Updated]

You're defintely right to be scrutinizing CarGurus, Inc. (CARG) right now; the market is forcing a massive shift. The company isn't just navigating high interest rates that suppress auto loan affordability and increased state-level scrutiny on financing disclosures-it's also in a race to pivot with technology. The core challenge is hitting their projected 2025 Revenue of around $1.65 Billion while simultaneously pushing Digital Retail (DR) to account for 20% of total revenue, all while competing with aggressive AI integration from big tech. This PESTLE analysis cuts through the noise, showing you exactly where the political headwinds, economic pressures, and technological opportunities will dictate CARG's near-term valuation.

CarGurus, Inc. (CARG) - PESTLE Analysis: Political factors

The political landscape in 2025 presents CarGurus, Inc. with a fascinating duality: a clear market opportunity driven by trade policy, but also a growing regulatory headache from state-level consumer protection and data privacy laws. You need to focus on compliance right now, because the cost of non-compliance is rising fast.

Trade policies affecting new vehicle supply, indirectly boosting used car demand

The most immediate and positive political factor for CarGurus is the ripple effect of US trade policy on the automotive supply chain. The 25% tariff on imported vehicles and auto parts, which largely went into effect on April 3, 2025, is a game-changer for the used car market. Analysts now project that new vehicle prices could rise by up to $10,000 as a direct result of these tariffs, pushing more buyers toward affordable used alternatives. That's a huge shift in consumer behavior.

This political action directly strengthens the core of CarGurus' business model. The Manheim Used Vehicle Value Index showed the average daily sales conversion rate in March 2025 hit 65.8%, a strong increase from the three-year average of 60.8%. This signals a hotter, faster-moving used car market, which means more revenue opportunities for the dealers who use CarGurus to generate leads and for CarGurus' own digital retail products. Simply put, tariffs make your inventory more valuable.

Increased state-level scrutiny on online auto financing disclosures

While federal efforts like the FTC's Combating Auto Retail Scams (CARS) Rule were overturned by the Fifth Circuit Court of Appeals on procedural grounds, the regulatory pressure hasn't disappeared-it has simply shifted to the states. You're seeing a significant rise in state legislation aimed at banning junk fees, hidden fees, and promoting pricing transparency in auto sales and financing.

For example, California introduced its own CARS Act legislation in February 2025, which attempts to implement many of the same consumer protection provisions the FTC had sought. Plus, the Federal Trade Commission (FTC) clarified its Safeguards Rule in June 2025, classifying many dealerships as financial institutions. This mandates a written information security program to protect customer financing data, which is crucial for CarGurus' dealer partners and its own online financing tools. If your dealers aren't compliant, their ability to process leads from your site is compromised.

Potential federal regulation on data privacy, impacting dealer lead generation

The lack of a single federal data privacy law means CarGurus and its dealer network must navigate a complex, state-by-state regulatory maze. In 2025, a wave of eight new state comprehensive privacy laws is taking effect, including those in Delaware, Iowa, Nebraska, New Hampshire, New Jersey, Tennessee, Maryland, and Minnesota. This brings the total number of states with comprehensive privacy laws to around 20 by early 2026, covering approximately half of the US population.

These laws, like the California Privacy Rights Act (CPRA), require explicit consent for data collection and give consumers the right to opt out of the sale or sharing of their personal information. This directly impacts the core of lead generation, which relies on the seamless flow of consumer data. The industry is defintely moving toward a first-party data strategy, and any platform that relies on third-party data for targeted advertising or lead scoring faces rising compliance costs and legal risk.

Lobbying efforts by dealer associations to maintain franchise laws

Traditional franchised auto dealer associations remain a powerful political force, constantly lobbying to protect the existing franchise model against online disruptors and direct-to-consumer sales. Their primary goal is to maintain state-level laws that require manufacturers to sell through a franchised dealer network, a system that indirectly limits the growth of fully online retail models.

In 2025, groups like the North Carolina Automobile Dealers Association (NCADA) and the Houston Automobile Dealers Association (HADA) have been actively advocating to strengthen these laws. In California, the California New Car Dealers Association (CNCDA) is lobbying against Senate Bill 766 (SB 766), a bill they view as a direct attack on their ability to operate, which includes provisions that would delete existing consumer-centric pre-contract disclosure statutes. Their political action committees (PACs), such as the Committee of Automobile Retail Dealers (CARD) of Georgia, provide financial support to legislators concerned with the welfare of the automotive business. This sustained, state-level lobbying effort is a permanent headwind for any online platform that seeks to disintermediate the traditional dealer.

CarGurus, Inc. (CARG) - PESTLE Analysis: Economic factors

The economic landscape in late 2025 presents a clear headwind for CarGurus, Inc.'s core business: high borrowing costs are directly suppressing consumer demand, even as used vehicle inventory stabilizes. This dynamic creates a challenging environment for your dealer clients, which in turn pressures CarGurus' revenue growth, making the original aggressive targets defintely harder to hit.

High interest rates suppressing consumer affordability for auto loans.

The Federal Reserve's sustained high-interest-rate policy is the single biggest threat to auto affordability right now. When the cost of money is high, monthly car payments jump, pushing price-sensitive buyers out of the market. For a new car, the average interest rate (Annual Percentage Rate, or APR) for a 60-month loan sits around 7.07% as of November 2025.

The real pain point is in the used market, which is CarGurus' bread and butter. Used auto loan APRs for a prime borrower (credit score 661-780) are running at approximately 9.39%, based on Q2 2025 data. For subprime buyers (score 501-600), the rate can skyrocket to 18.90%. This high cost of financing forces consumers to either delay purchases or buy a significantly cheaper, older vehicle, shrinking the addressable market for your dealer customers and reducing their return on investment (ROI) from CarGurus' subscription services.

Used car inventory stabilization, pressuring CarGurus' pricing power.

Used car inventory levels have stabilized in 2025, which is a double-edged sword. While more cars mean more listings on the CarGurus platform, the normalization of supply pressures dealers' ability to charge premium prices. As of early November 2025, the total used vehicle inventory nationwide reached a new high for the year at approximately 2.26 million units, representing a 10% year-over-year increase.

The market's days' supply-a key metric-was 48 days in early November 2025. This stabilization means dealers must work harder to move metal, shifting their focus from simply listing to demanding more measurable ROI from every marketing dollar, including their CarGurus spend. The average used vehicle listing price was still high at $25,945 in early November 2025, but the increasing inventory suggests price pressure will continue to build.

Projected 2025 Revenue of around $926.43 Million, a modest growth challenge.

The company is navigating a challenging growth environment, primarily due to the strategic pivot away from the lower-margin Digital Wholesale segment. Here's the quick math: CarGurus' total revenue for the last twelve months (LTM) ending September 30, 2025, stood at approximately $926.43 million. This figure, while solid, is a far cry from the more ambitious long-term estimates, highlighting the modest growth challenge in the near term.

The core Marketplace segment is strong, generating $232 million in Q3 2025 revenue, a 14% year-over-year growth. But the sharp decline in the Wholesale and Product segments offsets this, resulting in only a 3% total revenue increase for the quarter. The company's future revenue trajectory is now almost entirely dependent on its ability to monetize the Marketplace segment more deeply, which brings us to dealer cost pressures.

Inflationary pressures increasing dealer costs for subscription services.

Inflation isn't just a consumer problem; it's a dealer problem, and it directly impacts CarGurus' pricing strategy. Dealers face rising operational costs for everything from labor to lot maintenance. When you layer on increasing subscription fees, the pressure on their margins becomes intense.

CarGurus is effectively passing on a form of inflation through its monetization strategy. The U.S. Quarterly Average Revenue per Subscribing Dealer (QARSD) is the concrete evidence of this pressure. In Q3 2025, U.S. QARSD grew by 7.9% year-over-year to $5,375. This increase comes from dealers adopting more of CarGurus' value-added products, like AI-powered tools and subscription upgrades. While this is a win for CarGurus' financials, it raises the dealers' customer acquisition cost (CAC). If a dealer's vehicle sales volume doesn't keep pace with this 7.9% increase in their CarGurus bill, they will inevitably scrutinize the platform's value proposition, which is a key near-term risk.

CarGurus, Inc. (CARG) - PESTLE Analysis: Social factors

Growing consumer comfort with fully digital, end-to-end car purchases

You and your peers are watching a fundamental shift: the car purchase is becoming a digital transaction, not just a digital search. This trend is a massive tailwind for CarGurus, whose platform is designed to facilitate this exact move from a listings site to a full digital retail solution. Honestly, the consumer comfort level with high-value online purchases has reached a critical mass.

CarGurus's own data for the second quarter of 2025 shows this clearly. Adoption of their Digital Deal solution-which lets buyers complete steps like financing and trade-in valuation online-is now at approximately 12,000 dealers. More critically, Digital Deal Leads account for more than 27% of all email leads, showing high intent from consumers. The most telling number is the year-over-year (YoY) growth: shoppers completing the full Digital Deal submission flow increased by a staggering 68% YoY.

Here's the quick math: nearly one-third of high-intent leads are already leveraging the digital tools to get finance and appointment details done before even stepping into a dealership. Still, what this estimate hides is the lingering preference for the in-person test drive; a July 2025 survey noted that 90% of buyers still prefer a traditional or hybrid process over a fully digital one. So, CarGurus's success hinges on perfecting the omnichannel experience (online research plus in-person test drive) rather than pushing a pure Direct-to-Consumer (DTC) model.

• Digital Deal dealer adoption: ~12,000
• Digital Deal Leads share: >27% of email leads
• Full digital submission growth: 68% YoY rise

Demographic shift towards urban, multi-modal transport, reducing car ownership

The demographic shift, particularly in dense urban centers, presents a complex risk/opportunity for CarGurus. Younger generations, especially Gen Z, are less focused on car ownership as a status symbol, citing concerns over cost, environmental impact, and urban congestion. Rising costs-including fuel, insurance, and parking-are making car ownership less viable in cities.

This macro-trend is fueling the growth of the broader mobility sector (Mobility-as-a-Service, ridesharing, micromobility). The global mobility sector is forecasted to grow from $389 billion in 2023 to an estimated $1.1 trillion by 2035. Digital services, which is where CarGurus's core competency lies, are the greatest driver, with an average annual growth forecast of 25% compared to just 9% for the wider mobility sector.

For CarGurus, the clear action is to use its leading digital platform to capture value from this shift. If a person buys fewer cars, they are more likely to use a platform that offers the most value for the one car they do buy, or to use the platform to sell it when they move to a city. The growth of car-sharing services in North America and Europe, expected to reach $6.9 billion in 2025, signals a market CarGurus could defintely explore for partnerships or new product lines.

Strong preference for transparent, upfront pricing models over negotiation

The social demand for pricing transparency remains one of the strongest drivers for CarGurus's core business model. For years, the traditional dealership model has struggled with consumer trust. A 2024 survey highlighted that 76% of Americans do not trust dealerships to be honest about pricing, and a massive 86% are concerned about hidden fees when buying or leasing a vehicle.

This deep-seated mistrust is exactly what CarGurus's proprietary Instant Market Value (IMV) system-which ranks listings based on price competitiveness-was built to counteract. It provides a clear, data-driven anchor price, which buyers strongly prefer over the old negotiation model. Even though a federal appellate court vacated the FTC's Combating Auto Retail Scams (CARS) rule in early 2025, which was intended to save consumers over $3.4 billion by enforcing transparency, the consumer desire for it has not changed.

The table below shows the stark consumer sentiment that CarGurus's platform directly addresses, making it a trusted intermediary.

Used car market perception improving due to certified pre-owned (CPO) programs

Affordability pressures in 2025 have pushed more buyers into the used car market, but they are seeking reliability. This has significantly improved the perception of used vehicles, particularly those backed by Certified Pre-Owned (CPO) programs. CPO vehicles bridge the gap between a new car's peace of mind and a used car's lower price point.

The used car market is robust, with most retail sales growth in 2025 concentrated in vehicles priced under $30,000, a segment that accounted for roughly 73% of the year-over-year increase in used sales. CPO sales are a key component of this growth, running about 3% higher year-to-date in 2025 compared to 2024. In July 2025 alone, CPO sales jumped 5.4% YoY, totaling nearly 223,000 units.

This trend is a clear opportunity for CarGurus to further integrate CPO listings and CPO-specific financing options into its platform, giving consumers the assurance they crave. The US used car market is on a trajectory to reach 50.92 million units by 2033, expanding at a Compound Annual Growth Rate (CAGR) of 3.36% from 2025, with CPO programs as a major growth driver. CarGurus must ensure its dealer solutions fully support the merchandising and digital presentation of CPO inventory to capture this value-conscious but quality-focused consumer.

CarGurus, Inc. (CARG) - PESTLE Analysis: Technological factors

You're looking at CarGurus, Inc. (CARG) and seeing a company that's all-in on tech, and you're right. The core of their strategy for 2025 isn't just about listing cars; it's about using Artificial Intelligence (AI) to fundamentally change how dealers and consumers transact. This shift is critical because it moves them from a high-volume, lower-margin listing service to a high-value, high-margin software and data partner. It's a smart pivot, but it also opens them up to a new class of competition.

Aggressive AI integration for personalized search and vehicle valuation tools

CarGurus is defintely leveraging AI to deepen engagement and create a new revenue stream. In June 2025, they rolled out an AI-powered search experience that lets consumers use natural, conversational language to find a vehicle, moving beyond simple keyword searches. This is a direct play to capture higher-intent buyers, and early pilot results show AI search users are spending more time on the platform. This is a simple metric, but it's a powerful one.

For dealers, the AI push is even more strategic. The Q3 2025 launch of PriceVantage, an AI-powered used vehicle pricing tool, is a key product. This tool uses real-time consumer demand data to give dealers predictive analytics on pricing, turn-time, and lead potential. This focus on software and data is why management believes their AI-powered product suite will expand their total addressable market from the current $3.5 billion U.S. dealer marketplace spend to include an additional $4 billion in U.S. dealer software and data products. That's a massive expansion of the opportunity.

The consumer-facing generative AI shopping assistant, CG Discover, also showed strong traction in Q3 2025, with traffic nearly tripling quarter-over-quarter and leads growing 3.3X. Here's the quick math: higher-quality leads mean higher dealer ROI, which strengthens the subscription model.

Competition from large tech firms entering the digital retail (DR) space

While CarGurus has a strong market position, the success of the digital retail (DR) model is attracting formidable rivals. You need to watch the large tech firms-the ones with near-unlimited capital and massive user bases-because they pose the biggest existential risk. The online car market is projected to reach $722.79 billion by 2030, growing at an annual rate of 17.5%, so everyone wants a piece.

The biggest concern is a company like Amazon, which has already partnered with manufacturers to support car sales, leveraging its immense user trust and logistics network to enter the space. This maneuver bypasses the traditional dealer relationship model that CarGurus relies on. Also, established competitors are not standing still; Cars.com launched its own AI-powered search engine in November 2025, matching CarGurus' core innovation almost immediately. Competition is fierce.

Expansion of digital retail offerings, aiming for 20% of total revenue

The company's strategic pivot involves winding down the low-margin, transaction-heavy CarOffer business to focus squarely on the higher-margin Marketplace and Digital Retail solutions. The goal is to get dealers and consumers to complete more of the transaction online. Although the specific 20% target for digital retail revenue isn't a publicly guided number, it represents the kind of aggressive internal goal necessary to drive the shift toward scalable software monetization.

For the full year 2025, the Marketplace segment-which includes all digital retail solutions-is guided to bring in between $902 million and $907 million in revenue, with a stable non-GAAP gross margin of 93%. This is where the value is. The Digital Deal product, which facilitates online-to-offline transactions, is the primary vehicle for this expansion. The focus is on increasing the revenue generated per subscribing dealer (QARSD) by selling them more of these high-margin software tools.

Need for continuous platform security investment against cyber threats

As CarGurus focuses on digital retail and dealer software, they become a more attractive target for cyber threats. Moving money, personal data, and proprietary pricing algorithms means the risk profile rises substantially. Across the industry, global cybersecurity spending is projected to exceed $210 billion in 2025, driven by the weaponization of generative AI by threat actors.

While CarGurus does not break out a specific cybersecurity budget, a large digital enterprise like this should be allocating a significant portion of its IT budget to defense; typically, large organizations dedicate 10% to 20% of their IT budget to cybersecurity. Failure to invest here is not an option when cybercrime is predicted to cost the world $10.5 trillion in 2025. A major data breach would instantly erode the consumer trust they've spent two decades building, which is the foundation of the entire business model.

The action here is clear:

• Invest in AI-powered security tools to counter generative AI attacks.
• Prioritize third-party risk management for dealer data integration.
• Ensure the security budget scales with the revenue growth of the $4 billion software market expansion.

CarGurus, Inc. (CARG) - PESTLE Analysis: Legal factors

Enforcement of FTC Rules on Deceptive Advertising in Online Vehicle Sales

You might think the regulatory risk from the Federal Trade Commission (FTC) has eased up, but honestly, it's just shifted. The biggest near-term legal development was the Fifth Circuit Court of Appeals vacating the FTC's Combating Auto Retail Scams (CARS) Rule on January 27, 2025, on procedural grounds. This means the federal requirement for dealers to disclose the full 'Offering Price' upfront and get express consent for add-ons is currently stalled.

But here's the quick math: the underlying problem-deceptive pricing and hidden fees-didn't go away. So, states and private litigants are picking up the slack. For CarGurus, Inc. (CARG), this means the risk of being a platform for non-compliant dealer advertising remains high. The company's core value proposition of providing 'Great Deal,' 'Good Deal,' or 'Fair Deal' labels is directly undermined if its dealer partners continue to use conditional pricing to game the system.

The immediate action point is watching state-level activity. For example, California introduced Senate Bill 766, the California CARS Act, in February 2025, which essentially mirrors the vacated FTC rule. If that passes, it will force price transparency on dealers in the largest US auto market, and CarGurus must enforce its own dealer pricing guidelines with defintely more rigor.

State-Specific Licensing Requirements for Digital Retail and Brokering Services

The move toward full digital retail, where CarGurus facilitates the entire transaction, runs directly into a patchwork of state motor vehicle laws. These laws were written for physical lots, not for a national online platform. The challenge is that a company facilitating a sale can be deemed an 'auto broker' or a 'dealer,' triggering costly, state-by-state licensing, bonding, and physical location requirements.

Consider the compliance overhead: In California, an Auto Broker License is an endorsement of a retail dealer license and requires a physical business location. In Illinois, a new vehicle dealer must furnish a bond or certificate of deposit in the amount of $20,000 for each location. This is why CarGurus primarily acts as a lead generator and advertising platform, but as it pushes into transactional services, these costs become a direct headwind to scaling. You simply cannot ignore the need for a license in every state you transact in.

The table below highlights the varying legal hurdles CarGurus must clear for its transactional business expansion:

Ongoing Class-Action Risks Related to Website Accessibility (ADA Compliance)

Digital accessibility litigation under the Americans with Disabilities Act (ADA) Title III is an escalating risk for all large e-commerce platforms, and CarGurus is no exception. For the first half of 2025, ADA website accessibility lawsuits surged by 37% year-over-year, with 2,014 cases filed in federal courts alone. This isn't a minor issue; it's a litigation factory.

The core risk is that the website's design-like missing image alt text, inaccessible forms, or poor color contrast-prevents users with disabilities from accessing vehicle listings and services. The shift of cases to state courts, particularly in California and New York, is dangerous because state laws often allow for financial damages, unlike federal ADA claims which typically only allow injunctive relief.

• New York: Led the nation with 637 lawsuits in the first half of 2025.
• Florida: Saw 487 filings, making it the second most litigious state.
• California: Accounted for 380 cases, often tied to the Unruh Civil Rights Act.

Plus, CarGurus faces a separate, significant data privacy class-action risk under the California Invasion of Privacy Act (CIPA) for using third-party tracking software without explicit user consent. This specific CIPA risk carries statutory damages of up to $5,000 per violation, which can quickly become a massive liability for a high-traffic site.

Evolving Compliance Costs for International Data Transfers (e.g., in Canada/UK)

Operating in the UK and Canada means CarGurus must navigate two distinct and evolving data protection regimes, which directly impacts the cost of doing business. The regulatory environment is highly dynamic, especially following Brexit and the EU's General Data Protection Regulation (GDPR).

In the UK, the new Data (Use and Access) Act, coming into law on June 19, 2025, is prompting a review of existing data transfer guidance. While the UK's adequacy decision from the EU is expected to be extended until 2031, CarGurus must still use mechanisms like the International Data Transfer Agreement (IDTA) or the Addendum to the EU's Standard Contractual Clauses (SCCs) for transfers outside the UK. Non-compliance with GDPR for its European-related data can result in fines up to €20 million or 4% of global annual turnover, whichever is greater.

For Canada, the Personal Information Protection and Electronic Documents Act (PIPEDA) is the federal standard. While Canada has an adequacy decision from the EU, there are rising concerns that US surveillance practices could jeopardize this status, forcing Canadian companies to implement more rigorous safeguards like SCCs to protect EU data subjects. This means CarGurus needs to proactively invest in a 'safe' recipient status, which adds to the compliance budget for data mapping, Data Transfer Impact Assessments (DTIAs), and legal counsel.

CarGurus, Inc. (CARG) - PESTLE Analysis: Environmental factors

Accelerating shift to Electric Vehicles (EVs) changing listing features and valuation.

You are seeing a fundamental, structural shift in the US auto market that directly impacts CarGurus' core product: the vehicle listing. The rapid, though volatile, adoption of Electric Vehicles (EVs) is forcing the platform to evolve beyond traditional metrics like miles-per-gallon (MPG) and engine size. For the 2025 fiscal year, the US EV market is projected to be valued at approximately $139.6 billion, with growth expected to accelerate to $439 billion by 2034.

This growth means EV-specific data points are now critical for valuation and consumer trust. EV Volumes forecasts that the pure EV market share of overall US light-vehicle sales will hit 13.5% in 2025, up from 10.3% in 2024. That's a huge jump in a single year. CarGurus has to quickly integrate and normalize data like battery range, charging speed (kW), and battery health, or risk losing relevance to EV-focused competitors. The used EV market is also heating up, with non-Tesla models like the Chevrolet Bolt averaging around $17,000, and used EVs priced under $25,000 selling faster than their gasoline counterparts.

Here's a quick look at the market shift in new vehicle sales for 2025:

Note: The recent decline in BEV and PHEV share in late 2025 is largely due to the pull-ahead of purchases before federal EV tax credits expired in September, not a long-term demand collapse.

Increased demand for carbon footprint data on listed vehicles.

While a specific consumer-facing carbon footprint label isn't yet standard on US listing sites, the underlying demand for sustainability data is rising, driven by global regulatory pressure on manufacturers. This pressure translates into consumer expectation. We know that the life-cycle greenhouse gas (GHG) emissions of a Battery Electric Vehicle are estimated to be 73% lower than a gasoline ICE vehicle. That 73% number is what the consumer wants to see quantified.

CarGurus needs to anticipate this trend by offering dealers a way to display a vehicle's estimated lifetime emissions or fuel savings. It's about translating complex environmental data into a simple, actionable financial benefit for the buyer. This information is defintely becoming a competitive differentiator, especially for the younger, more environmentally conscious buyer segment.

Key environmental data points CarGurus must integrate for 2025 listings:

• Estimated annual fuel/energy cost savings.
• Vehicle's life-cycle CO2e (Carbon Dioxide Equivalent) emissions rating.
• Battery State of Health (SOH) for used EVs.
• Source of electricity for charging (e.g., local grid mix data).

Dealer pressure to list more fuel-efficient and hybrid models.

The immediate environmental opportunity for CarGurus isn't just pure EVs; it's hybrids. Dealers are actively adjusting their inventory mix to meet consumer demand for a lower-risk transition to electrification. The share of full hybrids (HEVs) in new vehicle retail sales is expected to reach 14.5% in November 2025, a solid increase from the previous year. Also, the hybrid share of total new vehicle inventory has climbed from 7.5% in September 2024 to 11.3% in September 2025.

This shift puts pressure on CarGurus to optimize its search and filtering tools for hybrids and plug-in hybrids (PHEVs). Dealers are actively 'leaning into the right mix' of ICE, hybrids, and value models to manage profitability in a cooling market. This means CarGurus' platform needs to make it extremely easy for a buyer to compare the total cost of ownership (TCO) between a traditional ICE vehicle, a hybrid, and an EV. If you don't provide that clarity, the dealer will use a different channel that does.

Long-term risk of declining Internal Combustion Engine (ICE) vehicle listings.

The long-term risk is clear: the volume of ICE listings, which still make up the vast majority of CarGurus' revenue base, will shrink. New vehicle sales of traditional ICE models are projected to account for a record-low 75% of the US market in 2025, down from 97% in 2016. Globally, pure ICE vehicle sales declined by nearly 0.48 million units between June 2024 and June 2025.

While ICE vehicles are not going away overnight-especially in the used market-the pipeline of new ICE vehicles feeding the used market is definitely constricting. Analysts are already slashing their 2030 forecasts, with some predicting BEVs will take 24% to 27% of the new car market by the end of the decade. For CarGurus, this means the platform's revenue model must quickly diversify away from a heavy reliance on ICE listings to fully capture the growing, higher-value EV and hybrid segments. The long-term viability of the platform depends on this pivot.