As of early June, new-vehicle inventory across U.S. dealerships fell to 2.47 million units, marking a 0.6% decline from May and a 12.2% drop year over year. While the market has cooled from its springtime sales surge, many dealers are maintaining leaner lots as they cautiously navigate ongoing tariff uncertainty. The average new-vehicle days’ supply increased slightly to 70, up from 67 at the end of April but still nine days lower than the same time last year.
Cox Automotive data indicates that retail sales momentum continued to slow through May, with the 30-day pace down 5.3% from earlier in the month. However, the current pace is only 1.5% below May 2024 and aligns with historical seasonal patterns. The result is a more normalized market environment compared with the elevated activity seen in March and April.
Despite the dip in volume, dealers are benefitting from greater pricing control. At the end of May, the average listing price for a new vehicle rose to $48,883, a 0.5% month-over-month increase and 3.2% higher than the same period last year. Most automakers are holding steady on broad price hikes, instead relying on reduced incentives and modest fee increases to manage profitability without triggering sharp consumer pushback.
Dealers also appear to be limiting their intake of next-model-year inventory. Historically, around 7% of available units at this time of year would be next-model-year vehicles. Currently, that figure stands closer to 3%, suggesting that automakers are delaying model transitions as they evaluate how to price vehicles amid tariff developments. Notable exceptions include BMW and Genesis, which each have approximately one-third of their stock allocated to 2026 models.
Conversely, Mitsubishi’s inventory is heavily weighted toward prior-model-year vehicles, with 40% of its stock comprising vehicles from previous model years. Mitsubishi’s pricing remains largely unchanged, while BMW saw a 2% price increase and Genesis’ prices remained stable.
Looking ahead, dealers may experience continued stability in pricing and moderate shifts in inventory. While major price spikes appear unlikely, consumers should expect fewer promotional deals as manufacturers carefully manage supply and pricing in response to tariff-related pressures and evolving demand.
