The supply of new and used cars to meet our lot is declining as customers compete to buy cars before President Trump’s tariffs surge.
By early April, the average day supply for new vehicles across the country measures the time it takes to sell, but it rapidly shrunk from 91 days in March to just 70 days. Cox Automotive Analysis. That number usually shifts about 5-7 days per month, not the 21st.
“Reduction” [new] Cox’s chief economist Jonathan Smoke said: Tuesday’s report update.
According to the report, inventory fell to a level not seen since 2023, with supply in April 10 days lower than the previous year.
Sales of the new vehicle are 22% ahead of last year’s seasonally adjusted pace, Smoke said. Logistics companies have also seen a “surge in sales of second-hand cars,” with sales of used cars about 7% higher this year than 2024.
“Taxes rose sharply in March sales, particularly reducing inventory levels for manufacturers who already have low stock levels,” Cox Auto Analysts announced.
“As a result of these tariffs and stock tightening, and without Washington’s policy changes, consumers should expect new vehicles to be priced higher by summer and reduced discounts.”
Trump slapped vehicle imports at a 25% tariff on April 3, and taxed auto parts he followed in early May.
Major automakers, including key manufacturers in the US, are relying heavily on parts from other countries, and are threatening to send costs across the industry.
Auto dealers across the country spiked into customers in March as Americans tried to beat a cost crash.
As of March 31, the total supply of new vehicles in lots across the US was 2.69 million, down 10.2% from 2.99 million units at the beginning of March, according to Cox Auto Analysis. That figure has fallen 2.4% from the same period last year.
Several mainstream car manufacturers have seen consumables shrink significantly. Lincoln, for example, felt that supply would drop 54 days that day, according to the report.
Trump has recently shown that he may temporarily exempt the auto industry from the trade war, similar to how he cut the stricter rates of most countries to 10% for 90 days when negotiations were made.
“I’m looking at something to use it to help some car companies,” Trump told reporters in the Oval Office on Monday.
He said it would need time for carmakers to move production from Canada, Mexico and elsewhere to the US.
“And they need a little time because they’re going to make them here, but they need a little time, so I’m talking about that.”
However, if car tariffs are maintained, companies should expect a continuous decline in production and sales. This will increase the price of both new and used cars, Cox Auto Analyst said.
In the meantime, automakers have been stepping up production efforts in the US to soothe Trumps and escape import taxes.
For example, General Motors announced that pickup truck production has increased at its Indiana facility, and cancelled cancellations will be downtime at its Tennessee factory.
Conversely, Stellantis, which owns Jeep, Ram and Chrysler, temporarily fired 900 US employees after implementing a production suspension.
Ford Motor and Stellantis have lowered the prices of their new vehicles in a special deal to invite customers on tariff alert.
