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.

Chevrolet is among U.S. automakers still stocking supply from overseas factories despite U.S. trade tariffs.
Pexels/Raduz
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.
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.”
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.
More Industry

Used EVs Defy Overall Market
While the used-car market saw three months of price declines or stagnation, the used EV segment did the opposite – rising for three straight months.
Read More →
Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →
State Follows Federal Warning on Auto Ads
The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.
Read More →