New-Vehicle Market Sees Rising Inventory and Steady Prices Amid Tariff Uncertainty
Despite concerns over tariff-driven price hikes, new-vehicle prices have remained largely flat, with the average listing price at the end of June slipping just $84 to $48,749 and average transaction prices inching up by only $108.
Inventory is rising, with 2.83 million new vehicles available at the start of July—a 14.5% increase from June but still 1.4% below last year—yet demand hasn’t kept pace, pushing days’ supply to 82.
Next-model-year (MY2026) inventory is growing but remains over 20% below last year’s levels.
While European luxury brands like Mercedes-Benz and Audi are cautiously managing tariffed imports, BMW has significantly boosted MY2026 inventory. Meanwhile, non-luxury imports from South Korea and Mexico are replenishing steadily.
Sales incentives and pricing have remained mostly steady, and with tariff decisions delayed, the market is experiencing a slow, measured evolution rather than sudden shifts, offering patient shoppers potential value.
Check out the Fleet Insights Fleet OEM Tariff Impact Hub
Auto Industry Holds Steady Amid Rising Canada-US Trade Tensions
The Canada-US trade conflict remains unstable, with a new threat of 35% tariffs on potentially non-CUSMA Canadian goods adding to uncertainty. The automotive sector, a frequent target in this dispute, continues to face challenges. In response to U.S. tariffs, Canada imposed counter-tariffs on U.S.-built light vehicles on April 9, 2025, but granted confidential Remission Orders to five automakers that build vehicles in Canada.
Used-Vehicle Market Holds Steady as Demand Stays Strong and Affordable Options Shrink
Used-vehicle inventory across U.S. dealer lots remained stable at 2.21 million units in early July, showing little change from both the previous month and the same time last year, according to Cox Automotive.