Slowest-Selling 2023 Vehicles Piling up at Dealerships: We Smell Sweet Deals
While some supply chain issues remain, automobile production is mostly back to pre-Covid numbers. But some new car models are languishing on dealership lots with huge supplies you won’t believe. In some cases, there are 20,000 sitting around. And in the case of the 2023 Jeep Compass, over 35,500 are available in dealer lots and back lots for sale.
What is dealership “Market Day Supply?”
Dealers and manufacturers normally access supply and demand by market day supply or MDS. That’s the number of each model in one’s inventory divided by average daily sales in a 45-day period. It reflects the model’s desirability to the public.
So a low MDS indicates a hot seller that the dealer cannot satisfy the pace for with its existing inventory. And a high MDS means a slow seller that is stacking up. Obviously, you want low, not high MDS.
But with this information, should any of these high MDS vehicles be what you’re looking for, or if you’re just sniffing around for new dealership deals, you can expect plenty of compromise from your dealer. Since floor plans necessitate quick sales before added insurance and loan expenses begin adding up, dealers want to dump the slow sellers to make room for the hot sellers.
With a 753 Market Day Supply, are dealerships making deals?
Manufacturers know a model’s MDS backward and forwards, so they will sometimes offer off-the-books incentives to dealers that aren’t publicly known. So don’t think that a model like the Jeep Renegade, with a 753 Market Day Supply (yes, 753 days!), can’t be sold for far less than the MSRP. Dealerships have to be making deals.
When you look at the Renegade’s supply from the manufacturer’s perspective, it becomes more alarming. The MDS amounts to a two-year supply of them if Jeep shut down the assembly lines today. Yikes! So even if you’re not interested in a new Renegade, after seeing this, you might be now.
Here’s the MDS top 10 list
Below is the list of the models with the highest MDS as of the end of May 2023 from CarEdge:
|Make||Model||Market Day Supply||Total For Sale||Total Sold in the 45-day period|
|Chevrolet||Silverado 4500 Medium Duty Chassis Cab||443||1171||119|
|RAM||Ram 2500 Pickup||403||19710||2201|
|RAM||Ram 1500 Classic||328||4340||596|
Both Ram and Jeep products seem to be ripe for the picking. And for families looking for a deal on a new minivan, you can’t beat that Chrysler Pacifica Hybrid. If a luxury SUV is more you’re style, there’s the Lincoln Corsair. So these aren’t turkeys by any means.
But sales will increase as these manufacturers and dealers are extremely motivated to make deals on these vehicles. So hurry on out there and start doing some hard negotiating.