Approximately 3.5% of all July 2019 car sales were 2018 model years, according to data.
“This is the maximum percentage of new car sales of older models since at least 2005”
Now, automakers needs to pay roughly $1,100 in incentives to move 2018 model year cars.
Car Dealerships now looking forward to sell off cars from the 2019 model year to bring in 2020′s shiny new models, they’re running into a problem.
A full 3.5% of all July’s new car sales were 2018 model years, according to the expert. It means Approximately49,000 of the 1.4 million new cars sold in the U.S. in July were last year’s models. The percentage of new 2017 models that sold last July was 2.5%, he said Monday.
Having a lot of 2018 models on the lot isn’t good for business. Experts points out, automakers are spending about $1,100 more per car in incentives to move 2018 cars of their lots than 2019 models, cutting into profits for automakers.
Experts estimates that there may be another 30,000 cars from 2018 still waiting to be sold.
With so much 2018 inventory still on dealer lots, car dealers are hesitant to stock new 2020 models, he said. For perspective, car dealerships were able to move older models off their lots faster during the Great Recession than now, in July 2008 only .9% of all new car transactions were cars from 2007.
“Need to production cuts, the industry isn’t getting any bigger and hard choices might have to be made.