The average days’ supply for new vehicles has slipped to 70 days
New car availability in the United States is declining and consumer preferences are shifting, new data has revealed. In July, inventory across the country fell 6.1 percent month-over-month to roughly 2.65 million units, indicating a tightening of the US auto market that has been ongoing since November 2024.
Read: Inventory And New Car Prices Fall Despite Trump’s Tariffs
It’s been revealed that the average days’ supply for new vehicles has dropped to 70 days, a significant decline from 97 days earlier this year. This updated figure uses dealer-advertised inventory rather than manufacturer sales reports, offering a closer, more immediate look at what is actually on the ground.
Several brands reported significant inventory reductions from June. Nissan fell 15 percent, Mercedes-Benz dropped 14 percent, Chevrolet slipped 9.6 percent, and Honda declined 9.3 percent. In contrast, Volkswagen inventories rose 9.5 percent, while BMW posted a 5.4 percent increase.
Prices Under Pressure
Alongside shrinking supply, prices are showing subtle shifts. The average MSRP eased to $50,772 in July, a $385 drop from June. Discounts also thinned, falling from $3,405 to $3,226. While these are not drastic changes, they reflect a market where tighter supply is nudging incentives downward.
Electric vehicles are not immune to the squeeze. As of July, S&P Global reports there were approximately 188,000 EVs in inventory, a 4.9 percent decline year over year and 11.6 percent down from the previous month. This fall can be largely attributed to the impending expiration of the federal EV tax credits.
Key EVs to have experienced inventory declines include the Hyundai Ioniq 5 (-1.9 percent), Chevrolet Equinox (-16 percent), and Honda Prologue (-25 percent). By comparison, inventory of the Ford Mustang Mach-E has increased 10.4 percent since June.
Inventory declines are also being experienced across hybrid vehicles, falling from 67 days in June to just 58 days in July. Supply is even thinner in some markets, dropping to 47 days in Dallas and 46 days in Houston.
Pickups and Tariff Effects
Significant inventory declines have also been reported across the full-size half-ton pickup segment, dropping 13.4 percent year over year and 9.7 percent month over month. Inventories of the Toyota Tundra are particularly tight, plummeting 37 percent since June, or roughly 11,000 units.
Tariff policy remains another influential factor. In July, about 884,000 vehicles were still labeled “pre-tariff,” down from 948,000 the month prior. The steady decline highlights how trade measures continue to work their way through supply chains.
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Brad Anderson’s lifelong affair and fascination with cars started young. Before even graduating high school,… Read full bio

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