US New Car Inventory Rebounds as Prices Ease in 2025

The U.S. automotive industry has been navigating turbulent waters since the imposition of tariffs under President Donald Trump. Yet, fresh data reveals an important shift: new vehicle inventory levels have recovered to near pre-tariff numbers, while average listing prices have begun to fall—positive news for car buyers nationwide.

Key Takeaways

• New vehicle inventory reached 2.68 million units in July 2025—comparable to pre-tariff supply levels.
• Average listing price declined to $48,480, down 0.3% from the previous month.
• Sales surged in July, with more than 1.1 million vehicles sold across the U.S.
• Inventory supply varies by brand, with Land Rover, Ram, and Lincoln holding the highest stock levels.
• Despite tariffs, pricing stability suggests resilience from manufacturers absorbing part of the cost.

Inventory Trends: Supply Bounces Back

Cox Automotive data shows that as of July 31, 2025, new car inventory in the U.S. stood at 2.68 million vehicles, equal to 73 days of supply. While this is slightly lower than the 2.83 million vehicles recorded in early July, it reflects a consistent stabilization compared to the dramatic fluctuations seen immediately after tariff measures were introduced.

Interestingly, these figures still mark the fourth-lowest inventory levels in the past 12 months, with supply previously dipping to 67.2 days in April and hovering around 71 days in March and May. The most recent decline was driven by an impressive surge in sales, underlining strong consumer demand even in a challenging economic climate.

Sales Surge in July

July 2025 proved a remarkable month for automakers, with 1,101,474 new vehicles sold nationwide. That represents a clear jump from the 1,013,764 vehicles sold during the same period in 2024.

The rise in sales indicates that buyers remain active despite pricing pressures caused by tariffs. This resilience suggests that American consumers are adapting to higher base costs while benefiting from recent price softening.

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Manufacturer Inventory Differences

Not all carmakers are in the same position. While the industry’s average sits at 73 days of supply, 24 manufacturers report inventories above that benchmark.

• Land Rover leads with the highest inventory at 130 days’ worth of supply.
• Ram follows with 121 days, while Lincoln sits at 117 days.
• Audi (114 days), Mitsubishi (109 days), Jeep (104 days), and Genesis (99 days) also hold stock levels far above the industry average.

High inventory levels for these brands could trigger competitive pricing, discounts, and dealer incentives as they attempt to move cars off lots faster.

Price Movements: Relief for Buyers

The average new vehicle listing price in July was $48,480, a slight 0.3% month-over-month decrease. While modest, this decline signals the beginning of potential relief for consumers who have faced steadily rising prices over the past few years.

However, prices remain 2.8% higher than in July 2024, illustrating the long-term effects of tariffs and inflationary pressures. Manufacturers, despite absorbing significant tariff-related costs, have managed to hold pricing relatively steady to maintain competitiveness.

Technical Snapshot: July 2025 Market Data

What This Means for the Industry

The stabilization of U.S. car inventory, paired with easing prices, highlights the adaptability of automakers in a tariff-driven economy. While some manufacturers face oversupply, others benefit from strong demand.

For consumers, the environment may present greater bargaining power at dealerships, especially for brands with higher stock levels. On the industry side, maintaining balance will be key: too much inventory risks deep discounting, while too little could deter buyers unwilling to pay premiums.

The Road Ahead

Despite the turbulence brought by Trump’s tariffs, the U.S. automotive market is showing resilience. With inventory returning to healthier levels and prices beginning to soften, both automakers and buyers may find renewed confidence heading into late 2025.

The coming months will be critical as manufacturers navigate supply chain pressures, tariff impacts, and consumer demand. If sales momentum continues, the industry could enter 2026 with a stronger footing than many predicted.