On the Dash:
- U.S. new-vehicle inventory began August at 2.68 million units, matching pre-tariff levels, with a 73-day supply.
- EV sales are rising ahead of the September 30 tax credit expiration, while incentives reached a 2025 high of 7.3% of ATP.
- Average listing prices fell 0.3% in July to $48,480 despite tariff-related cost pressures on automakers.
U.S. new-vehicle inventory began August at 2.68 million units, matching levels seen before the March 26 tariff announcements, as electric vehicle sales accelerated and incentives reached their highest level of the year. According to Cox Automotive’s vAuto Live Market View data, days’ supply stood at 73, down seven days from July, reflecting stronger sales activity.
The average listing price at the end of July fell 0.3% month over month, down $154 to $48,480, the lowest since late April. This price stability comes despite tariff-related cost pressures on automakers, signaling disciplined production and targeted incentive strategies to maintain buyer interest.
Inventory declined by 1% in July, or 25,840 vehicles, compared to the prior month. The U.S. market also recorded an 8.7% increase in new-vehicle sales month over month and a 10.1% increase year over year. Inventory remains 4.7% lower than a year ago, showing that consumer demand continues to outpace replenishment rates in many segments.
Brand-level dynamics vary across the industry. Kia, Hyundai and Mercedes are seeing higher EV sales but have been slower to restock, while Mazda and Mitsubishi are leveraging stronger incentives on key models. Nissan’s refreshed Armada and redesigned Murano have gained traction with added promotional support. Popular vehicle types such as subcompact to mid-size crossovers, SUVs and pickups, including the Toyota Tacoma and Tundra, remain key growth drivers.
Incentives in July averaged 7.3% of the average transaction price, the highest year-to-date, according to Kelley Blue Book. The average transaction price of $48,841 decreased slightly by $59 month over month, leaving pricing relatively unchanged. Year over year, most brands have kept price increases within 2%, although some have seen gains exceeding 10%.
Through the first seven months of 2025, the average days’ supply was six days lower than the same period in 2024. Analysts attribute the fluctuation to tariff announcements, measured production output and evolving EV purchase patterns as buyers look to secure federal tax credits before the September 30 expiration date.
With Model Year 2026 launches on the horizon, particularly all-new models rather than mid-cycle refreshes, analysts expect pricing to edge upward while the market remains competitive and demand-driven.
