New-vehicle inventory across the U.S. declined by 7.4% in April, falling to 2.49 million units at the start of May, according to Cox Automotive‘s vAuto Live Market View. The drop, fueled by slower production and delivery rates amid continued tariff uncertainty, has tightened supply even as demand remained elevated through early spring.
At the beginning of May, days’ supply stood at 66, a decrease of six days from April and 16 days from the same time last year. The new-vehicle inventory strain arrives just as dealers gear up to receive 2026 model year vehicles and manufacturers adjust pricing strategies in response to recent tariff announcements.
The average new-vehicle listing price rose to $48,656, an increase of $774 from the start of April and up 2.8% compared to a year earlier. While some luxury and volume brands saw slight month-over-month declines, others like RAM, Lincoln and Cadillac posted noticeable price hikes. The overall trend reflects the continued uneven effects of global trade policy on brand-level pricing.
Retail sales peaked in mid-April but slowed in the latter half of the month, with the overall 30-day sales pace finishing just under 1% higher. Despite the slowdown, year-over-year sales pace improved by 10.8% in April, signaling that consumer demand remains resilient, albeit more cautious.
With incentives falling to 6.7% of the average transaction price, down from 7.0% in March, the market shows signs of shifting toward a seller’s environment. Brands like Ford have begun adjusting pricing on select imported models, while others are holding firm as they evaluate longer-term strategies.
Dealers and manufacturers now face a complex environment where pricing, production and consumer expectations must be carefully managed heading into the summer sales cycle.
