US Auto Inventory Levels Rise in February 2025

According to S&P Global Mobility's Retail Advertised Inventory data, February 2025 saw a significant increase in US auto inventory levels, rising by 3.4% month-over-month for a total of 2.9 million units listed for sale. This follows two consecutive months of inventory decline.

This uptick may indicate a strategic inventory restocking at the dealer level, particularly following the typical end-of-year sell-down that often leaves dealerships with depleted stock. As of February, S&P Global Mobility has not observed tariff impacts on inventory volume but may in the coming months as OEMs adapt to the changing trade environment. 

EV inventory also experienced a 2.9% increase in February.

The following EV models demonstrated sizable inventory changes month-over-month:

• Hyundai Ioniq 5: +39%
• Audi Q6 E-TRON: +33%
• Honda Prologue: +18%
• Cadillac Lyriq: +15%
• BMW iX: -6%
• Ford Mustang Mach-E: -17%

Despite this recent increase, the industry has been right sizing EV inventory by adjusting production plans to align with slower-than-expected consumer demand.

While Tesla inventory is unavailable due to their direct-to-consumer model, the brand has experienced a notable decline in both share of EV registrations and brand loyalty over the past year. This is due to several factors, among which are an older product portfolio and increased consumer choice with more than 23 new models launched in the past year, as well as the growth of hybrid vehicles.

This decline presents a substantial opportunity for non-Tesla EVs, which are well-positioned with growing inventory levels, to capitalize on shifting consumer preferences and capture EV market share.

The average age of dealer inventory in February was 83 days, according to S&P Global Mobility research. This figure is a slight improvement from the peak of 87 days experienced in December but is up from 70 days in February 2024. A steady average age indicates that vehicles are moving through the sales pipeline efficiently, although dealers may still be cautious about overstocking.

Approximately 512,000 units of 2024 model year inventory were available in February accounting for 17% of the total stock. This is in line with prior years indicating the model year changeover is progressing normally. 

The average list price of vehicles is currently $47,003, down from a high of $51,114 in July 2023. Brands and dealers are discounting vehicles to provide consumers with more accessible pricing options. While price sensitivity is a long-term trend, it is reflected in the rise of non-luxury vehicles listed below MSRP, now at 53% compared to 43% a year ago.