agent Entrepreneur logo
MenuMENU
SearchSEARCH

Demand Doesn’t Match New-Vehicle Supply

Market hangs in a ‘delicate balance’ as OEMs, dealers and consumers wait to see how trade policy plays out.

by Hannah Mitchell
July 11, 2025
Demand Doesn’t Match New-Vehicle Supply

Chevrolet is among U.S. automakers still stocking supply from overseas factories despite U.S. trade tariffs.

Credit:

Pexels/Raduz

2 min to read


New-vehicle sales are tepid despite plentiful supply and flat asking prices, Cox Automotive reported in an early July assessment that found a flat 30-day sales pace.

Inventory, at 2.8 million units as the month opened ahead of the Independence Day holiday, was up about 15% over early June but 1% below a year earlier, Cox said. The supply includes early 2026 model-year arrivals.

Ad Loading...

The inventory amounts to 82 days’ supply, up 12 days from late May when the rush of trade tariff-dodging buyers waned. Though sales were about flat in June, they fell significantly from both April and May. The pace was still up 2% year-over-year, Cox said.

It pointed out that continually shifting U.S. trade policy hasn’t yet significantly boosted manufacturer’s suggested retail prices, though many brands’ incentives have been less plentiful. 

The average June listing was $48,749, flat month-over-month though up 3% year-over-year. The average transaction price was also flat at $48,907, and incentives were also flat at about 7% of the ATP.

“Tariff negotiations have been kicked down the road for another three weeks, which means it could be the fourth quarter before we see any significant movement in overall consumer prices,” said Cox, which characterized conditions as a “delicate balance.”

“For now, patience remains a virtue, and attentive consumers may find value by tracking nuanced movements in pricing and inventory as the year progresses.”

Ad Loading...

The swelling of supply was observed across the industry. 2026 unit inventory alone is down 21% year-over-year, Cox said, pointing out that U.S. trade tariffs are especially affecting European luxury brands. 

Audi and Mercedes in particular appear to be limiting exports to the U.S., Audi having no 2026 units here so far, and Mercedes at less than 2% of available supply here being new units, according to Cox data.

In good news for bargain shoppers, many of the least expensive models are being stocked as normal, including Buicks and Chevrolets from South Korean factories and Chevrolets, Fords and Hondas from Mexico, Cox said.

DIG DEEPER: The Agent's Trojan Horse

More Industry

Group photo of men outside storefront.
Industryby Hannah MitchellMay 28, 2026

Pennsylvania Dealership Under New Retailers

The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.

Read More →
Hallway with lockered wiring and computer
Industryby Lauren LawrenceMay 28, 2026

Battery Storage Takes Priority Over EVs

U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.

Read More →
Gray-scale photo of a line of Mini cars in a dealership parking lot
Industryby Hannah MitchellMay 27, 2026

Auto Dealers Feel Better But Not Great

A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.

Read More →
Ad Loading...
Closeup photo of the front of a white car
Industryby Hannah MitchellMay 21, 2026

New-Vehicle Sales Picture Relative

A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.

Read More →
Nissan logo on front of building
Industryby Lauren LawrenceMay 21, 2026

Auto Group Acquires Third Nissan Rooftop

Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.

Read More →
Couple talking with auto salesman next to new car inside dealership
Industryby Hannah MitchellMay 20, 2026

April Less Affordable

Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.

Read More →
Ad Loading...
Wooden people figures of different colors in a row, similar to board game pieces
IndustryMay 20, 2026

Building an Extraordinary F&I Agency

Work to determine your specialized talent, because that fact will determine everything about your agency’s future.

Read More →
Ingredient card, policies and procedures, fixed operations, variable operations, data security, audit
Industryby Jim GantherMay 19, 2026

Recipe for Compliance

The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.

Read More →
Photo of new Chevrolet Bolt parked on a beach
Industryby Hannah MitchellMay 14, 2026

EVs Getting More Attractive

A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.

Read More →
Ad Loading...
Benchmark bar graph showing April 2026 EV Sales
Industryby Lauren LawrenceMay 14, 2026

EV Sales Drop in April Following Surge

North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.

Read More →