- Prices of new cars aren’t rising much despite hefty tariffs
- The inventory of cars for sale is growing
The average new car buyer in America paid $48,907 in June, about $108 more than in May.
Americans aren’t paying much more, and automakers are asking less. The average new car was listed for $48,749 in June. That’s $84 less than listing prices in May.
So far, carmakers are doing everything they can to prevent steep tariffs on new cars and car parts from raising the manufacturer’s suggested retail price (MSRP) on most cars.
Related: Is Now the Time to Buy, Sell, or Trade-in a Car?
But sales are slowing dramatically. It’s more difficult to import a car or the parts to build one than it was in spring, but the average dealer’s inventory is actually growing as new vehicles arrive faster than people looking to buy them.
Average Sticker Price up Just 3% From Previous Year
- Despite 25% tariffs, prices are just 3.1% higher than a year ago
The average new car’s listing price sits just 3.1% higher than it did in June 2024. Some automakers have managed to drop prices — both BMW and Mercedes saw their listing prices decrease over the past year.
But dealers aren’t discounting cars by much. New car incentives rose just 0.1% month-over-month. Discounts made up just 6.9% of the average sale. Before the COVID-19 pandemic, that same figure was routinely over 10%.
Inventory Returning to Normal for Some Brands
- Carmakers aim for a 75-day inventory
- The average brand ended June with 82 days’ worth of cars to sell
An old industry target tells car dealers to aim for a 75-day supply of new cars to sell: 60 days’ worth on the lot and another 15 on order or in transit.
When President Donald Trump announced new tariffs, Americans rushed to buy the cars sitting on dealer lots at pre-tariff prices. We saw the average inventory fall as low as 66 days in April.
Related: How Each Car Brand is Handling New Tariffs
But sales have slowed. The average dealer ended June with an 82-day supply.
That figure still differs from brand to brand.
Some, like Audi, Dodge, and Mazda, are well over the industry average. Shoppers should expect to have an easy time finding precisely the right car at those dealerships, and may have negotiating leverage.
Others, like Toyota and its Lexus luxury brand, remain so understocked that shoppers might have trouble locating the exact car they want, and find little flexibility on prices.
