New-vehicle inventory declined in July as consumers purchased vehicles at a faster pace than automakers replenished dealer lots. According to data released from vAuto Live Market View, available inventory at the start of August totaled 2.73 million units, down 3.5% from a month earlier and essentially flat compared with a year ago. July sales increased 8.5% from June and were up 2.9% year over year, helping reduce national days’ supply to 75 days from a revised 82 days at the beginning of July. The shift suggests the market is moving toward a healthier balance, with demand absorbing inventory more quickly than earlier in the year.
Stronger sales were particularly evident in several of the industry’s most important segments. Midsize SUVs posted one of the largest declines in days’ supply, falling nearly 14 days during the month, while full-size truck supply tightened by 10 days as sales rose nearly 16%. Performance in these high-volume segments suggests consumer demand remained healthy despite affordability challenges and elevated vehicle prices.
The average new-vehicle listing price was $49,249 at the end of July, unchanged from the end of June and up only 1.6% year over year. Stable pricing alongside declining inventory suggests stronger demand is absorbing available supply without creating upward pressure on prices. Unlike the supply-constrained environment of recent years, inventory levels remain sufficient to support consumer choice even as sales activity improves.
Meanwhile, the average transaction price (ATP) in July was $49,855, according to Kelley Blue Book, up 1.9% year over year, and the average manufacturer’s suggested retail price was $51,621 in July, also higher year over year by 1.9%.
