Car buyers face slimmer pickings as new vehicle inventory shrinks

“[Tariffs are] clearly impacting every manufacturer in a different way,” Cox Auto’s Executive Analyst Erin Keating. (3 min. read)

Author

Marcus Amick
May 19, 2025

Consumers shopping in May might face more challenges than those who purchased vehicles last month.

The details: According to a Cox Automotive report, new vehicle inventory took another dip in April, continuing its decline from March thanks to stronger than usual demand.

“The threat of tariffs affecting prices clearly pushed shoppers into the showrooms at the end of March and for the first few weeks of April. But the sales pace is slowing,” Cox Automotive Executive Analyst Erin Keating, told CDG News.

  • May kicked off with a total supply of 2.49 million new vehicles on dealer lots across the U.S., down 7.4% from the 2.69 million units at the start of April and down 10.5% from a year ago. 

  • New-vehicle days’ supply, at the start of May, was 66, down 16 days compared to last year and down six days from last month. 

Why it matters: Some of the decline in inventory can be also attributed to seasonal patterns, but dealer lots aren’t being replenished at the same rate, contends Cox.

“Manufacturers seem to be holding back production with a wait-and-see attitude to see how the tariffs shake out,” Keating explained.

Digging deeper: Finding that “perfect ride” isn’t the only challenge car shoppers are encountering in holding off until May to make that big purchase. Average new vehicle listing prices are ticking up. 

  • The average new vehicle listing price at the end of April was $48,656, up $774 (1.6%) from the revised $47,882 at the start of the month and up $1,318 (2.8%) from a year earlier. 

  • New-vehicle sales incentives declined to 6.7% of ATP for the month, down from 7% in March. 

  • Ram, Lincoln, and Cadillac saw the largest month-over-month increases in listing prices among volume brands. Meanwhile, BMW, Buick, Mitsubishi, and Dodge saw declines month over month.

“[Tariffs are] clearly impacting every manufacturer in a different way, and one that doesn’t show domestics as a clear winner,” added Keating. 

Bottom line: May's shrinking inventory shows how rapidly consumer advantages can vanish in today's auto market, especially given the uptick in reactive manufacturing decisions.

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