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

Blue and white RV parked on beach facing the ocean.
Industryby Lauren LawrenceSeptember 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 →
Photo of two men and one woman on a discussion panel
Industryby Hannah MitchellSeptember 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 →
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industryby Lauren LawrenceAugust 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...
Mitsubishi shadow line-up
Industryby Hannah MitchellAugust 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
Mechanic holding a vehicle diagnostic device while standing above an open car hood
Industryby Hannah MitchellAugust 24, 2026

Recalled Vehicles Hit 5-Year High

Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.

Read More →
Ad Loading...
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Orange BMW car on empty road.
Industryby Hannah MitchellAugust 14, 2026

BMW Concept Car Makes Fuel to Burn

The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.

Read More →
Ad Loading...
Six men standing for photo outside of car dealership
Industryby Lauren LawrenceAugust 13, 2026

South Carolina Auto Group Downsizes

Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.

Read More →
Ad Loading...