What’s Happening With New Car Inventory in the US Right Now?
If you’ve been car shopping lately, you might’ve noticed something odd: dealership lots look fuller than they did a year ago, but prices aren’t skyrocketing like before. As of the end of July, US dealers were sitting on about 2.68 million new vehicles—enough to last 73 days at the current sales pace, according to Cox Automotive. That’s a noticeable dip from the 2.83 million cars in stock just a month earlier, and inventory is down 4.7% compared to last year. In fact, this is the fourth-lowest inventory level in the past year, with the absolute low point hitting 67 days’ supply back in April.
Why Are Some Brands Swimming in Unsold Cars While Others Are Lean?
Here’s where things get interesting. While the industry average is down, not every automaker is feeling the squeeze. Land Rover, for example, has a whopping 130 days’ worth of cars on hand—more than four months of inventory. Ram isn’t far behind at 121 days, with Lincoln, Audi, Mitsubishi, Jeep, and Genesis all hovering above the 99-day mark. That’s a stark contrast to brands that have managed to keep their lots leaner, which often means better pricing power and less pressure to discount.
What’s Driving These Inventory Swings?
A big piece of the puzzle is tariffs. The Trump administration’s tariffs shook up the automotive supply chain, causing uncertainty and, for a while, higher prices and tighter inventories. But now, data shows inventory levels have bounced back to where they were before those tariffs hit. The market’s adapting. Some brands, especially those with less flexible production or slower-selling models, are still playing catch-up. Others have tightened their belts and managed inventory more aggressively.
Are New Car Prices Finally Coming Down?
Here’s the good news for buyers: the average new vehicle listing price in July was $48,480, down 0.3% from the previous month. While that’s still 2.8% higher than last July, it’s a sign that the relentless upward march in car prices is slowing. The recent dip in prices comes as sales have surged—over 1.1 million new vehicles sold in July, a jump from just over a million the year before. More cars on lots and more buyers in showrooms? That’s a recipe for a more balanced market.
Which Brands Are Holding the Line on Pricing?
Despite the rollercoaster of tariffs and supply chain headaches, most automakers haven’t slashed prices dramatically. Even with some brands sitting on big piles of unsold cars, they’re resisting the urge to flood the market with discounts. That’s partly because the cost of building cars—labor, materials, shipping—remains high. But it’s also a strategic move: keeping prices stable helps protect brand value and resale prices, even if it means slower turnover for some models.
How Does This Affect Your Next Car Purchase?
If you’re shopping for a new car, timing and brand choice matter more than ever. Brands with higher inventories—think Land Rover, Ram, or Mitsubishi—may be more willing to negotiate, especially on slower-selling models. On the flip side, brands with tighter inventories can afford to hold firm on price. It pays to do your homework: check local inventory, compare prices, and don’t be afraid to walk away if the deal doesn’t feel right. The market is shifting, and buyers who are patient and informed will have the upper hand.
What’s the Real Impact of Tariffs on the Car Market?
Tariffs were supposed to protect American jobs and manufacturing, but the reality has been more complicated. While they did push prices up initially and caused some short-term shortages, the market has largely adjusted. Automakers have found ways to manage supply, and consumers are seeing a bit of relief at the dealership. Still, the average price of a new car is higher than it was before the tariffs, and some brands have taken bigger hits than others. The lesson? Policy changes ripple through the market in unpredictable ways, but the industry is remarkably resilient.
Where Do We Go From Here?
The big takeaway? Navigating the new car market isn’t about waiting for the perfect moment or expecting prices to crash overnight. It’s about understanding the trends, knowing which brands have leverage, and being ready to act when the right deal pops up. Start with one change this week—maybe expand your search to include a brand with higher inventory or brush up on your negotiation skills. Odds are, you’ll spot the difference by month’s end.