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

The outside of a blue Gregg Young Chevrolet dealership.
Industry•by Lauren Lawrence•October 22, 2026

Nebraska Rooftop Changes Hands

The Gregg Young Automotive Group has sold its second dealership to Janssen Auto Group, both in Plattsmouth, Neb.

Read More →
Two white men's shaking hands
Industry•October 15, 2026

Penske Auto Group Deal a Record

The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.

Read More →
Rows of cars parked in exterior lot
Industry•by Hannah Mitchell•October 8, 2026

War Toll a Damper on Used Auto Prices

Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.

Read More →
Ad Loading...
Mechanic cleaning interior of engine
Industry•by Lauren Lawrence•October 8, 2026

Bridge the Maintenance Gap

With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.

Read More →
Ford F-150 truck rounding a curve
Industry•by Hannah Mitchell•October 1, 2026

California Store Has New Owner

The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.

Read More →
crane lowering a pipeline into the ground
Industry•by Lauren Lawrence•October 1, 2026

BMW Plant Pursues Cleaner Energy

BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.

Read More →
Ad Loading...
Two dodge cars outside of dealership.
Industry•by Lauren Lawrence•September 17, 2026

Auto Affordability Inches Up

The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.

Read More →
Five men smiling for photo in front of Honda car dealership.
Industry•by Lauren Lawrence•September 10, 2026

Ohio Auto Group Under New Ownership

After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.

Read More →
Blue and white RV parked on beach facing the ocean.
Industry•by Lauren Lawrence•September 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Ad Loading...
Photo of two men and one woman on a discussion panel
Industry•by Hannah Mitchell•September 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Ad Loading...