May served as a pivotal transition month for the U.S. automotive market. While overall sales experienced a year-over-year increase, the pace decelerated significantly as the previous surge in demand, fueled by tariff uncertainties, began to cool.
Despite a slight rebound in consumer sentiment, affordability concerns persist, underscored by elevated interest rates and rising average transaction prices, with new vehicle inventory averaging $44,365 and used at $28,913.
The remainder of 2025 is anticipated to be challenging, as ongoing tariff uncertainty could lead to higher prices and a sustained slowdown in sales.
In this dynamic environment, data-driven decisions are more critical than ever for dealers to optimize inventory, precisely identify demand, and implement effective pricing strategies.
Carryover & Markdown Trends From May
- Carryover for new decreased by 1% MoM to 51%, 3% higher than last year.
- Carryover for used held steady MoM at 44%, inline with last year.
- Percent of units sold with a markdown held steady MoM for new and increased by 3% for used.
- New aged ending inventory decreased by 2% MoM while used increased by 3%.
- Used aged inventory increased by 1% YoY and new by 2%.
Lotlinx May Vincensus Update: to download the full report on inventory and markdown trends, click here.
