On the Dash:
- Used-vehicle demand rose 2.3% year over year in August, extending a steady growth trend.
- New inventory fell to its lowest level of 2026 as consumer interest continues to favor more affordable vehicles.
- Improving supplies of two- and three-year-old used vehicles could give dealers more off-lease inventory to work with.
According to the latest CarGurus Intelligence Report, new-vehicle inventory carried an unusual mix in August, with next-year models making up just 12.4% of stock, well below the 22.1% to 25.2% range recorded from 2023 through 2025. The shift emerged as new-vehicle demand kept softening and used-vehicle demand extended its yearlong run of steady growth.
New-vehicle sales fell nearly 4% year over year in August, erasing the gains seen in May and June. Automakers still pulled back new inventory during the month, dropping it to the lowest level so far this year, though it remained close to 2025 levels. Consumer interest in affordable vehicles continued to draw down availability of models priced below $40,000, a trend that likely pushed the average list price to $51,700. Market days supply for vehicles under $30,000 stood at about 52 days, compared with 91 days for vehicles priced above $80,000.
The report also found several factors behind the model-year gap, such as high-volume 2027 models, including the next-generation Chevrolet Silverado and GMC Sierra, which are scheduled to launch later this year. Some automakers are extending the 2026 model year instead, as Nissan is doing with its 2026.5 Rogue. The comparison also reflects how last year’s launches were timed, since some 2026 models reached dealers earlier in the calendar year, while the 2026 RAV4 didn’t begin arriving until December 2025. With total inventory flat and a higher share of current-model-year vehicles on lots, automakers may also be timing 2027 arrivals to align with 2026 departures to avoid swelling overall inventory.
Notably, pickups carried some of the highest 2026 inventory levels among the segments tracked, with days on market ranging from about 60 to nearly 112.
Used-vehicle market holds
According to the report, used-vehicle demand rose 2.3% year over year in August, continuing a steady growth trend that has held for several months. Although inventory dipped slightly, it remained well above last year’s levels. Supplies of two- and three-year-old vehicles improved, a potential sign that rising off-lease volume is beginning to reach the market. Additionally, time-on-lot metrics held steady, and average used prices stayed at $30,200 for the fourth straight month. Used prices typically cool seasonally in the final third of the year, and it remains to be seen whether that pattern holds or elevated retail demand keeps values propped up.
