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Home»Automotive»Tariffs Drive Drop in Vehicle Inventory, Spike in Prices – Remarketing
Automotive

Tariffs Drive Drop in Vehicle Inventory, Spike in Prices – Remarketing

News/Media ReleaseBy News/Media ReleaseMay 17, 2025No Comments4 Mins Read
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Tariffs Drive Drop In Vehicle Inventory, Spike In Prices
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In the beginning of May, the new-vehicle days’ supply was 66, down 16 days from last 12 months and 6 days from last month.

Whilst the whipsaw of adjusting tariff policy dominated the headlines, the dynamics of the April new-vehicle market unfolded as expected. 

Recent-vehicle sales saw momentum from late March and into April, before petering out. Recent-vehicle inventory declined further, by 7.4% from March, in response to the Cox Automotive evaluation of vAuto Live Market View data released May 16.

May opened with a complete supply of recent vehicles on dealer lots across the U.S. at 2.49 million units, down 7.4% from the two.69 million units at first of April and down 10.5% from a 12 months ago. Seasonal patterns persist, because it is just not unusual to see sales rise in the course of the traditional “spring bounce.” 

Inventory, nevertheless, is just not being replenished at the identical rate. Some automakers are likely holding the road on deliveries and production, as everyone struggles with the uncertainty surrounding the Trump Administration’s tariff policies.

Cox Automotive’s vAuto Live Market View days’ supply relies on the estimated retail sales pace for probably the most recent 30-day period. In the beginning of May, the new-vehicle days’ supply was 66, down 16 days from last 12 months and 6 days from last month. As automakers prepare to bring 2026 model-year vehicles to showrooms and introduce post-tariff-announcement pricing, inventory is anticipated to rise, but higher prices may further slow the pace of sales.

The 30-day sales pace peaked in mid-April but ended the month higher by lower than 1%, because the market cooled notably in the ultimate two weeks. The actual urgency was in late March and early April. Still, that push faded as consumer sentiment stabilized after the rhythm of trade negotiation announcements became normalized, and consumers shifted to a more measured car-buying approach. The market may return to a more normal balance of “wait and see” and “buy now” attitudes. Yr over 12 months, the sales pace was up 10.8% at the top of April.

Recent-Vehicle Listing Prices Increase in April

This can be a supply-side story, and there was clearly more demand and traffic within the showroom during March and April, selling down available vehicles. The rise in average listing price shows market-level dynamics had more of an impact on pricing than a change in invoice or manufacturer’s suggested retail price.

At the top of April, the common latest vehicle listing price was $48,656, up $774 (1.6%) from the revised $47,882 at first of the month and up $1,318 (2.8%) from a 12 months earlier. Nonetheless, the increases weren’t across the board, as some brands like BMW, Buick, Mitsubishi, and Dodge saw declines month over month. This reinforces the uneven distribution of impacts that the tariff uncertainty creates available in the market. Amongst volume brands, RAM, Lincoln, and Cadillac saw the biggest month-over-month increases in listing prices.

As reported earlier, in response to Kelley Blue Book, a brand new vehicle’s average transaction price (ATP) was $48,699 in April, up 2.5% month over month and up 1.1% 12 months over 12 months. Recent-vehicle sales incentives declined to six.7% of ATP in April, down from 7% in March.

What to Expect in May and Beyond

Consumers are questioning what it means to be “made in America” and whether the popular model or segment is more significant. Data indicates tariffs may raise costs for some vehicle models, but automakers remain uncertain how the added expense could inflate consumer pricing.

Ford is among the many few brands which have announced higher pricing for specific vehicles made outside the U.S., while other brands develop their pricing strategies and promise to carry the road on current model-year products. This era presents a market share challenge; despite the potential shift towards a seller’s market, thorough consumer research can result in unexpected purchasing decisions.

This Article First Appeared At www.automotive-fleet.com

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