These Are The Slowest-Selling New And Used Cars That Should Command The Biggest Discounts - Forbes

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Fortunately for both new and used-vehicle shoppers, market forces affecting both ends of a dealership’s lot are finally approaching a pre-pandemic normal, with inventories again swelling and sky-high transaction prices finally falling back to Earth after seeing monumental hikes since 2019.

But while the most popular models remain strong sellers, a return to normalcy means that less-fashionable cars, trucks and SUVs are again beginning to gather dust on a dealers’ lot, which is causing the prices of some new and pre-owned models to drop more precipitously in recent weeks and months than others.

As it was when consumer demand was overwhelming and dealer inventories were slim, the situation here is governed by the law of supply and demand. For those who skipped Economics 101, this dictates that a product which is overstocked and relatively unpopular will tend to command less money than one that’s harder to come by and has buyers waiting in line to take delivery.

In the automotive retail business, the average inventory for any given vehicle is expressed in terms of what is called “days’ supply,” which is a measurement of how long it sits on the lot before finding a forever home.

According to a study of 228,000 new and used car transactions (1- to 5-year-old used cars) from July 2023 conducted by the online marketplace iSeeCars.com, top-selling new models are taking an average 29% longer to leave the lot, with popular used cars taking 26% more time to sell than at this point a year ago.

“Used-car prices were initially driven up by a lack of new-car inventory,” says iSeeCars Executive Analyst Karl Brauer. “Now there are plenty of new cars on dealer lots, but consumers aren’t rushing out to buy them,”

The study shows that the full-electric Tesla Model S sedan is the slowest-selling pre-owned model right now, taking an average 88 days to leave the lot. Among new vehicles, the Jeep Cherokee now takes up near-permanent residence at an average 129 days at a dealership, when a 60-day supply would be considered the optimal target.

Time is money in the auto retail business, and the longer a new or used model sits unsold, the more a dealer will pay in financing costs, which means the slowest selling models are the ones most likely to be granted the deepest discounts to help move the metal. Among new vehicles, those are also the rides most likely to be offered with one or more automakers’ incentives to help spur sales, including cash rebates and low-rate financing.

We’re presenting iSeeCars.com’s lists of the slowest-selling new and used vehicles below for the sake of bargain hunters, noting the average number of days they sit in stock before being sold and their average transaction prices.

Electric vehicle sales in particular have slowed dramatically in recent months, likely hampered by a wealth of new models reaching the market at a time when gas prices have dipped and negative publicity surrounding EV charging and operating ranges has proliferated. New EVs now remain in stock an average of 50 days, compared to 25 days in 2022, with used models sitting an average of 58 days now, versus 26 days a year ago.

At the other end of the ledger, the used vehicles that sell the fastest—and in turn can command the highest transaction prices—is led by the Honda HR-V (34 days), Acura ILX (35 days), Toyota Highlander Hybrid (37 days), Acura RDX (37 days) and the Hyundai Venue (38 days).

Among new cars, the models leaving a dealership’s inventory the quickest include a bevy of SUVs like the Toyota Grand Highlander Hybrid (9.2 days), Land Rover Range Rover (10 days), Toyota Grand Highlander (11 days), GMC Yukon (20 days) and the Lexus NX 350h (20 days).

These are the 10 slowest selling used vehicles right now, according to iSeeCars.com’s study, with their average number of days in stock and selling prices noted:

1. Tesla Model S: 88 days; $65,216
2. Buick Envision: 82 days; $29,057
3. Ford Mustang Mach-E: 76 days; $42,503
4. Land Rover Discovery Sport: 74 days; $30,206
5. Cadillac XT4: 72 days; $31,650
6. Tesla Model X: 71 days; $70,835
7. Land Rover Range Rover: 68 days; $75,060
8. Chevrolet Blazer: 65.9 days; $31,644
9. Chrysler 300: 64.7 days; $25,021
10. Buick Enclave: 64.3 days; $32,075

And here are the new cars that linger in stock for the longest time, with their average days to sell and transaction prices listed:

1. Jeep Cherokee: 129 days; $39,238
2. Land Rover Discovery Sport: 119 days; $53,422
3. Buick Envision: 117 days; $39,917
4. Ford Mustang: 109 days; $56,670
5. Mazda MX-5 Miata: 107 days; $34,543
6. Lincoln Aviator: 105 days; $69,283
7. Nissan LEAF: 95 days; $32,770
8. Ford Edge: 93.6 days; $42,746
9. Nissan Murano: 88.7 days; $45,130
10. Infiniti QX80: 87.2 days; $82,847

Source: iSeeCars.com. You can read the full report, including days to sell for new and pre-owned models in the top 50 U.S. metro areas here.

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These Are The Slowest-Selling New And Used Cars That Should Command The Biggest Discounts - Forbes
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