Car dealers are facing a significant inventory crisis as new vehicle sales are projected to decline in 2026. The episode discusses insights from Cox Automotive, highlighting a shift towards a buyer's market, particularly for affluent consumers. The hosts debate the impact of inventory levels on sales strategies, with Ford showing growth in entry-level models while other manufacturers struggle. The conversation also touches on the importance of pre-purchase inspections and the contrasting fortunes of brands like Nissan and General Motors in navigating this challenging market landscape.
Today on CarEdge Live, Ray and Zach discuss the latest Q4 sales and inventory data in 2026. Tune in to learn more! Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com
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"...fleet sales have been kind of the buoy for auto manufacturers and it seems like maybe they've tapped into that a little bit too much. So you've got fleet sales expected to fall 6%..."
Fleet sales are when companies or government organizations buy many cars at once instead of just one at a time. This can help car manufacturers sell more vehicles quickly.
Fleet sales refer to the sale of multiple vehicles to a single customer, typically businesses or government agencies, rather than individual retail customers. These sales often involve bulk purchases and can significantly impact a manufacturer's overall sales figures.
"...to take any more of the stagnant, stellantis and Nissan product off of those manufacturers' hands."
Stellantis is a big car company that makes many different brands of cars, like Jeep and Chrysler. It was created when two car companies joined together.
Stellantis is a multinational automotive manufacturing corporation formed from the merger of Fiat Chrysler Automobiles and PSA Group. It includes brands like Jeep, Chrysler, Dodge, Peugeot, and Citroën among others.
"Now, dad, the expectation for retail used vehicle sales, you see it there as well, is year over year decline in retail sales as expected..."
Retail sales are when regular people buy cars from dealerships instead of businesses buying many cars at once. It's how most people get their cars.
Retail sales refer to the sale of vehicles directly to consumers, as opposed to wholesale or fleet sales. This is where individual buyers purchase cars from dealerships.
"...as expected as to your point, affordability pressure sustains demand for lower priced vehicles."
Affordability pressure is when people find it hard to buy cars because they are too expensive. This makes them look for cheaper cars instead.
Affordability pressure refers to the financial strain consumers face when trying to purchase vehicles, often due to rising prices, interest rates, or economic conditions. This pressure can lead to a shift in demand towards more affordable options.
"So again, record hybrid sales, entry-level trim growth,"
Hybrid sales are about cars that use both gasoline and electricity to run, which helps save fuel and reduce pollution.
Hybrid sales refer to the sales of vehicles that use both a traditional internal combustion engine and an electric motor, providing better fuel efficiency and lower emissions.
"...on the Maverick Ranger and Bronco Sport rose 41% in the fourth quarter. The Maverick in particular had a strong year..."
The Ford Maverick is a small truck that is easy to drive and park, making it a good choice for people who want a truck without the bulk. It was first sold in 2021 and is known for being budget-friendly.
The Ford Maverick is a compact pickup truck that was introduced in 2021, designed to offer a versatile and efficient option for consumers looking for a smaller truck. It has gained popularity for its affordability and practicality.
"...on the Maverick Ranger and Bronco Sport rose 41% in the fourth quarter..."
The Ford Bronco Sport is a smaller SUV designed for people who like outdoor activities and off-roading. It looks tough and can handle rough terrain.
The Ford Bronco Sport is a compact SUV that emphasizes off-road capability and rugged styling, appealing to adventure seekers. It is part of the Bronco family, which has a storied history in off-road vehicles.
"Well, they also got rid of the F-150 Lightning. So, you can look at just one side of the equation here, but I actually give a lot of credit to Ford."
The Ford F-150 Lightning is an electric version of the popular Ford F-150 truck. It's designed to be environmentally friendly while still being useful for work and everyday tasks.
The Ford F-150 Lightning is an all-electric version of Ford's best-selling F-150 pickup truck, designed to offer the same utility with zero emissions.
"as these dealers try and sell down prior model year inventory."
Prior model year inventory means cars that were made in earlier years but haven't been sold yet. Dealers often try to sell these older models at lower prices to clear out space for new cars.
Prior model year inventory refers to unsold vehicles from previous production years that dealerships still have in stock. These vehicles are often sold at discounted prices to make room for new models.
"if they are interested in those remaining new 2024 and 2025 models to be able to get some sizable discounts."
2025 models are cars that will be made for the year 2025. They will have new features and styles compared to older models.
2025 models refer to vehicles that are designated as new for the 2025 model year, which will include updated features and designs compared to previous years.
"if they are interested in those remaining new 2024 and 2025 models to be able to get some sizable discounts."
2024 models are new cars that are made for the year 2024. They often have the newest styles and technology.
2024 models refer to vehicles that are designated as new for the 2024 model year, which typically includes the latest features, designs, and technologies from manufacturers.
Incentives are discounts or special deals that car companies offer to help sell their cars. They can make buying a car cheaper or easier.
Incentives are promotional offers provided by manufacturers or dealers to encourage consumers to purchase vehicles. These can include cash rebates, low-interest financing, or special lease offers.
"You can see here, Dad, Nissan's best-selling model was the Rogue or is the Rogue, yet sales fell 11% year over year."
The Nissan Rogue is a small SUV that many people like because it has a lot of room inside and is safe to drive. It's a good option for families or anyone needing extra space.
The Nissan Rogue is a compact crossover SUV that has been a popular choice for families due to its spacious interior and advanced safety features. It typically competes with other compact SUVs in the market.
"...ll 11% year over year. Now, at the same time, the RAV4 and the CRV both posted strong gains."
The Toyota RAV4 is a type of vehicle called an SUV, which stands for Sport Utility Vehicle. It's known for being practical and comfortable, making it a great choice for families or anyone who needs extra space for passengers and cargo.
The Toyota RAV4 is a compact SUV that has gained popularity for its reliability, spacious interior, and fuel efficiency. It is often discussed in the context of the competitive SUV market, particularly against rivals like the Honda CR-V, as both models frequently see strong sales figures.
"...The Nissan Rogue is a compact crossover SUV known for its spacious interior..."
A compact crossover SUV is a type of vehicle that is bigger than a regular car but smaller than a full-size SUV. They are great for families because they have more room and are easier to drive.
A compact crossover SUV is a vehicle that combines the features of a car and an SUV, offering a higher driving position and more cargo space than a traditional sedan. They are popular for their versatility and comfort.
"...the MSRP is $43,650, the dealer's advertising it..."
MSRP is the price that the car maker suggests the dealer should sell the car for. It's like a guideline for how much the car should cost.
MSRP stands for Manufacturer's Suggested Retail Price, which is the price that the manufacturer recommends a dealer sell the vehicle for. It's a starting point for negotiations when buying a car.
The dealer advertising price is how much the dealership is saying the car costs. Sometimes it's lower than the price suggested by the car maker.
The dealer advertising price is the amount that a dealership is promoting for a vehicle, which can be lower than the MSRP. This price can vary based on market demand and dealership strategies.
"let's see what the actual out-the-door price is from this dealership."
The out-the-door price is the final amount you pay for a car, including taxes and fees. It tells you exactly how much money you'll need to spend to drive the car home.
The out-the-door price is the total amount a buyer pays for a vehicle, including all taxes, fees, and additional costs. It's important to know this figure to avoid unexpected expenses when purchasing a car.
"Let's go back and just peek really quickly. What was the invoice price on this? $41,290."
The invoice price is what the car dealer pays to get the car from the manufacturer. Knowing this can help you negotiate a better price when buying a car.
The invoice price is the amount a dealer pays to the manufacturer for a vehicle. It is often used as a baseline for negotiations between the buyer and the dealer.
"about General Motors, Dad, oh, it's down here, dealership inventory,"
General Motors is a big car company that makes many different types of vehicles, including trucks and SUVs.
General Motors, commonly known as GM, is one of the largest automobile manufacturers in the world, producing a wide range of vehicles under various brands such as Chevrolet, GMC, Cadillac, and Buick.
"oh, it's down here, dealership inventory, which includes vehicles in transit"
Dealership inventory is the number of cars that a car dealership has ready to sell. It includes cars that are already on the lot and those that are on their way to the dealership.
Dealership inventory refers to the total number of vehicles that a dealership has available for sale, including those in transit to the dealership. Managing this inventory is crucial for dealerships to meet customer demand and maximize sales.
"which includes vehicles in transit that climb 19% year over year"
Vehicles in transit are cars that are on their way to a dealership but haven't arrived yet. They are part of the dealership's total inventory.
Vehicles in transit are cars that have been ordered by a dealership but have not yet arrived at the dealership. This term is important for understanding how dealership inventory levels fluctuate based on deliveries.
"that climb 19% year over year to 486,000 at the end of December."
Year over year means comparing something from this year to the same time last year to see if it has grown or shrunk.
Year over year (YoY) is a financial term used to compare a statistic or metric from one year to the same period in the previous year. It's often used to assess growth or decline in sales, inventory, or other metrics.
"So GM is trying to follow the Toyota Playbook a little bit, tighter inventory, increasing the sales obviously."
Tighter inventory means having fewer cars available for sale, which can make them seem more desirable and help the dealership sell them faster.
Tighter inventory refers to a strategy where a company keeps fewer vehicles in stock to create a sense of scarcity, potentially increasing demand and sales. This approach can help manage costs and improve profitability.
"...on what happens with this Nissan dealership advertising a vehicle $9,000 below MSRP. We'll see what it actually is."
Dealer fees are extra costs that a dealership might charge when you buy a car. These can include things like paperwork or preparation fees, and they can add up quickly.
Dealer fees are additional charges that a dealership may add to the price of a vehicle, which can include documentation fees, preparation fees, and other administrative costs. These fees can significantly affect the final price you pay for a car.
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It's noon here in Ventner City, New Jersey,
at our nation's capital, Washington, DC.
And this is Carage Live for Tuesday, January 6th.
With your host, me, Ray here in Ventner and Zach.
Well, somewhere near a Costco or a dealer.
I don't know where's.
Are you in your apartment?
No, I'm actually at the office today.
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Dad, today's leading topic.
Car dealers are drowning in inventory.
We're going to do a market update 2026.
We're going to kick things off, Dad,
with the latest information from Cox Automotive.
This just came out this morning.
Hot off the presses.
Cox Automotive forecast new vehicle sales at $15.8 million
down from 2025 as market fragmentation slows growth.
So we're going to go through all the different bullet points
they have here.
But the high level, Dad, is the auto industry
is expecting to contract year over year, not
grow year over year.
For the first time in a while here,
the projection isn't that we're going to grow.
It's that we're actually going to contract.
That's the first and most important thing
for everyone in our community to understand
is we are looking at a continuation, I'd say,
of a buyer's market in 2026 as sales slow.
Buyer's market, if you're wealthy.
Not so much a buyer's market if you're average or below
average income wise.
But yes, I believe the manufacturers
have consigned themselves to the fact
that they can make as much as they have in the past
by selling fewer vehicles to fewer people.
Just they're going to be much more expensive vehicles
that those fewer people are buying.
So yeah, it could be a buyer's market
for those who have the funds to participate.
I continue to disagree with my dad when it comes to this.
I actually have some great data today
that we're going to reference with regards to here.
Ford record hybrid sales entry level trim growth
fuel Ford 6% sales gain in 2025.
So we'll continue to have divergent opinions here
as we see manufacturers and my opinion
continue to lean more into entry level options.
But first, let's stick with just the Cox data here
for a moment and we'll talk about some of those vehicles
where there is a surplus of inventory.
That the highest level piece here,
I'm going to go down to it right here.
The expectation is total new vehicle sales
will fall 2.4% year over year.
Retail new vehicle sales is expected to fall 1.5% year
over year and fleet sales are expected to be down 6.1%.
I find that interesting because in a lot of ways
fleet sales have been kind of the buoy for auto
manufacturers and it seems like maybe they've tapped
into that a little bit too much.
So you've got fleet sales expected to fall 6%,
retail sales expected to fall 1.5%.
Yeah, apparently there aren't enough fleet customers
out there to take any more of the stagnant,
stilantis and Nissan product off of those manufacturers' hands.
And they have fleeted themselves up
so that there is nowhere to go in fleet sales
other than down because of that.
Now, dad, the expectation for retail used vehicle sales,
you see it there as well,
is year over year decline in retail sales
as expected as to your point,
affordability pressure sustains demand
for lower priced vehicles.
So the expectation is that new vehicle sales
will decline year over year
and used vehicle sales will decline year over year.
I was surprised to see that on the use car side
of being honest that Cox is saying it's both sides
of the market, new and used,
where we will see these declines.
That's because people are stressed financially.
It is, I think I saw statistics somewhere.
I don't know where in one of the articles
that I was reading today
that for people with family incomes
in excess of $150,000,
there was growth in auto sales
or those were larger participants in the market.
And so I think the average person isn't making,
isn't living in a household that's making
$150,000 or more a year.
And because of rising costs of any number of items,
whether it be automobile insurance,
which keeps going up,
whether it be the cost of maintenance
for your existing vehicle,
because the cost of many of those parts have gone up.
It is just more and more difficult
for more and more people to find themselves
in the market either for a brand new car
or even a relatively in comparison
to the costs of new cars,
relatively inexpensive used car.
It is, so yeah, I'm not really surprised
that they're expecting a decline
in both new and used car sales.
I think the reality is
that people were stretched financially
and stressed financially.
And at some point they have to start making,
I don't know, cuts.
For sure, Pops, but how do you reconcile
the Ford News this morning?
So again, record hybrid sales, entry-level trim growth,
Ford posted record settings, sales in doubt.
When you dig into the data here,
I'm gonna scroll down here.
You can see it's, yeah, right here.
Combined sales of the entry-level trims
on the Maverick Ranger and Bronco Sport
rose 41% in the fourth quarter.
The Maverick in particular had a strong year,
but deliveries up 18% to a record 155,000.
Entry-level Excel trim sales rose 30%.
Ranger sales were up 53%.
The entry-level Excel was up 82%.
So how can you, you know, looking at,
this is just data, this is not opinion.
This is just data.
How can you continue to come on here
and say that the manufacturers
are not going to respond to the market?
Because I always reference
the first viral video you ever had on YouTube.
There is no such thing as an unsold new car.
This latest data from Ford's fourth quarter performance
demonstrates and shows that they are going back
to entry-level options
because their dealers are drowning
in that overpriced inventory
that hasn't been selling for years.
So how do you reconcile this, Pops?
I'm not sure that I do,
but I also know that Ford dropped the escape.
So, you know, what are we looking at here?
We're looking at nothing but trucks.
You're talking about the Maverick, the Ranger,
okay, and if you want to get crazy and say,
okay, the Bronco Sport,
okay, that's a small SUV.
There is going to be a small subset of customers
that some of these manufacturers are going to address.
And maybe Ford has tapped into that.
Certainly Nissan has not been able to do it.
Stalantis has not really been able to do it.
I believe that General Motors,
between some of their models,
might have done it a little bit.
But I still, it's my opinion.
And, you know, opinions are wonderful
because they're kind of like the buttholes.
Everybody's got one, okay?
Whether it's right or wrong,
I just, I still, in my mind,
see these manufacturers producing more upscale,
higher profit margin, higher trim level vehicles,
and catering to those folks much more so
than they're catering to the rest of us.
You look at Subaru, sales were down last year.
You look at the Mazda,
which is considered a relatively inexpensive
affordable brand.
Their sales were down last year.
And not insignificantly.
So, yes, Ford has seen some growth
in their entry-level models,
while other manufacturers of more mass market
entry-level models have seen sales declines.
So, how do you marry the two of those
and come to any type of real conclusion?
I'm not sure.
I hear you, Pops.
I hear you.
However, I'm gonna pull up the commentary
directly from Ford.
And we can talk about them getting rid of the escape.
Well, they also got rid of the F-150 Lightning.
So, you can look at just one side of the equation here,
but I actually give a lot of credit to Ford.
Yes, they got rid of the escape.
They also got rid of the very expensive F-150 Lightning.
The quote here, Dad, from Andrew Frick,
who's the president of Ford Blue and Model E,
is, quote, we're growing share in beating the trend
because we offer a great range of products
from accessible entry-level models
to high performance off-roaders.
Our growth across record hybrid sales shows
that our power of choice approach,
offering gas, hybrid, and electric,
is exactly what consumers are looking for right now.
I continue to think, Dad, that the manufacturers
will be as nimble as they possibly can be
to replace all that overpriced inventory
that they were producing in the prior years
and get cheaper options into consumers' hands
because you and I both know this,
the dealers can't drown in inventory and perpetuity.
And some brands will do this effectively
and others may do it more poorly.
For example, the other headline today
that we can talk about is Nissan.
Nissan is trying to rectify
their dealer inventory situation
and their stair step program with their dealers.
Nissan has struggled mightily.
Nissan's year of pain,
tariffs and product missteps flatline 2025 sales.
Nissan's an example of a brand
who is trying to move nimbly here but is struggling.
So I think there will be winners and losers
as we move through 2026.
More broadly, I think the market will be a loser
because it is very clear
that there is an oversupply of inventory
and not enough cheap options.
And these manufacturers struggle
to produce the cheap options
because they set up their manufacturing processes
to produce to your point
more expensive high-content vehicles.
So I guess I would just like to comment.
There's gonna be winners and losers, I think.
I don't disagree with you about the winners and losers.
But I believe honestly,
if you look at what Cox is anticipating for 2026,
where we're gonna see a decline in sales,
we're gonna-
Yeah, new and used, yep.
So if you are a manufacturer,
are you going to cater to the people
who find it much easier to afford a vehicle
that is higher priced
and has a higher profit margin for you?
Or are you going to cater to that smaller group of people
that are considering new affordable options
that are less profit margins for you
as a manufacturer?
And so I think if they're anticipating sales declines,
I think they're gonna concentrate
on the higher profit margin vehicles.
If they know they're gonna sell less or fewer,
then, you know, well, the ones we do sell
have to have a lot of profit in them.
I'm not saying they're going to abandon
some of the more affordable options.
I just think they realize that there's fewer
and fewer people who can actually participate
and afford those.
And so the choice for those folks,
rather than getting a brand new car
that we might consider affordable,
are considering pre-owned cars
that are eminently more affordable for them.
So, you know, the beauty of this is God willing,
I'm around a year from now.
We can have this conversation and we can look back
and we can see how it all played out.
But I just don't see them giving up
their high profit margin vehicles
if they're going to anticipate selling fewer vehicles.
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I hear you loud and clear.
That being said, dad,
let's take a peek at the vehicles
that manufacturers are drowning in inventory wit.
So over on the CarEdge CarSearch,
I have filtered to new cars from 2024 to 2025.
We are down, y'all, to 866,297.
So if you were watching this show,
what was it, maybe a week, two weeks ago?
We had a video where it was titled,
There Are A Million Unsold New Cars Heading Into 2026.
This number has come down significantly, dad.
This is a huge decrease week over week or over two weeks,
well over 100,000 2024 and 2025 vehicles
being sold in the past two weeks,
as these dealers try and sell down prior model year inventory.
I'm gonna come down here really quickly.
We've got some lingering 2025 Lexus vehicles.
Let's see here, let's go to page three,
see what shows up there.
Mini Cooper's dad, 256 days on the lot,
177 days on the lot, Jaguar's 370 days on the lot,
Cadillacs in here, dad, sitting for well over 200 days.
So there's still a lot of aged,
and quite frankly, if I pause here,
expensive 77,135,000 inventory out there.
So no matter what, when we do see these headlines
that say, hey, sales are going to slow in 2026,
and we also see contradictory headlines,
hey, Ford posting best performance ever,
and we're seeing aggressive growth
in our entry level options.
There is a bit of dissonance here
because there's still the vehicles
that have already been produced
that were produced quite frankly a year, two years ago
that are sitting on the ground
that still have to get sold.
So what comes out of the production lines next
versus what's already out there,
there's 850 to 875,000 new cars out there
that remain unsold that need to move quickly.
And that's where as a consumer,
even if it is maybe a higher trim level
or more high content,
it's probably where you have
the most negotiability right now.
Well, perhaps, and I would suggest you sit there
and you're like, my God, look how many they moved.
And I look at it differently and go,
look how many are left.
And here's the reality,
if they didn't move those vehicles
in the last two weeks of the year
and now we're into January and February,
two of the slowest sales months of the year,
when the hell are they going to be able to move them?
And so I think, yes,
there could be many opportunities
for consumers out there
if they are interested in those remaining new 2024
and 2025 models to be able to get some sizable discounts.
Will those discounts be as big as perhaps
they might have been at the end of last year?
I'm not certain.
Will there be incentives?
I'm pretty sure.
Will the dealers themselves be motivated?
I would hope so because like I've said in the past,
this stuff is not like a fine wine.
This is not getting better with age.
This is not like dry aged beef.
It's not getting better the longer you dry age it, okay?
This is, these are mechanical vehicles
that need to be driven,
that need to have their parts lubricated,
that need to be run around.
And when they're sitting there,
they're not getting better, they're starting to rot.
The stuff is starting to fall apart.
And so, yeah, what are they gonna do
with that 866,000 of those
one were in January and February?
Talk to us a little bit, Dad.
You ran dealerships for decades.
What does January and February look like at the dealership?
And again, you have told the story many times,
you worked for owners who said,
do not carry prior model year inventory into the new year.
What happens with those few prior model year vehicles
and I say few, but 860,000 out of the 3 million new cars
for sale right now are prior model year.
It's a substantial amount.
So walk us through a little bit.
Take us back down memory lane.
If you were drowning in unsold cars,
you know the market sentiment is that you're gonna have
a slower sales year this year than you did last year.
How are you managing your dealership?
Well, it depends where in the country you are.
If you are in the upper Midwest and the Northeast,
where it's cold and it's snowy and it's miserable
and it's January and February
and you have to fight mother nature
along with the buying public out there,
it becomes eminently more difficult.
And so in those areas where foot traffic would be down,
you just don't see as many customers coming in.
Well, whatever customers do come in
to a dealership, you have to realize
that those folks are there for a reason
and that reason is to buy a vehicle
and your job, both as a salesperson
and as a sales manager, is to not screw that up, okay?
You cannot let those people leave
without having achieved the goal that they came in with
which was to go home in a new vehicle
because who in their right mind is going to a dealership
when it's 15 degrees outside and wanting to look at cars?
Only somebody that actually has an intention
of buying one or needs one.
So if I was in the Northeast or the upper Midwest,
whatever customers came in, I am treating them
like they're the only people I'm going to see that day
and I am going to work with them in a collaborative way
to figure out what the best vehicle is
for them to go home in.
Now, if you're in the Southwest or the South
where it's warmer and the weather doesn't impact
floor traffic quite as much,
but you are overloaded with 24s and 25s and they're new,
you have to reward your salespeople.
You have to put special commissions on those vehicles.
You might even reward your salespeople with $25
for every time they just show one to a customer
where they walk the customer over to one
and suggest that that might be the vehicle for them.
So you have to pull out all the stops as a manager
and just figure out how it is you're going to get
the floor traffic that shows up
to drive home in a new vehicle.
Now, not every manufacturer is the same.
I want to jump back here to Nissan, Dad.
And then I want to jump over to General Motors.
Again, we're getting last year's final sales data.
You can see here, Dad, Nissan's best-selling model
was the Rogue or is the Rogue,
yet sales fell 11% year over year.
Now, at the same time, the RAV4 and the CRV
both posted strong gains.
So this is an interesting opportunity for customers
because if you're going into a Nissan dealerships,
let's jump back over to the car search really quickly
here and now let's go Nissan.
And instead of just looking at all vehicles out there,
let's actually double-click in here on the Rogue.
There are still, wow, look at this,
there are still 1,317, 2024 and 2025 Nissan Rogues for sale
nationwide.
I'm curious what the trim breakdown is here.
So interesting, it's kind of all across the board,
but let's look at the platinum,
the most expensive one here.
I mean, you've got dealers sitting for 184 days,
300 days, 178 days on these 2025 Rogues, Dad.
There, I mean, look at this,
the MSRP is $43,650, the dealer's advertising it
for $35,150.
Yes.
And let me ask you a question.
I don't know anything about this dealer at all.
But do you really believe they're giving $8,500 off?
I have no reason not to believe it right now,
but we can obviously start a negotiation with them
and check in tomorrow, you wanna do that?
Yeah, because until you go in
and then they start hitting you with all the...
So let me do this, Dad, let me...
So the target price that we're suggesting
is $34,096.
Yes.
So $9,000 off of MSRP, this is crazy.
Yes.
Let's start negotiating, let's see what happens.
Yes.
So tomorrow on the show, we'll take a peek at this,
we'll see what the actual out-the-door price is
from this dealership.
Great, we have that now over in our dashboard
and we shall wait and see.
It's messaging the dealer right now.
So stay tuned, we'll see what that price actually is.
But Dad, I think it is an example.
It's kind of a desperation that you can find.
Nissan dealers, what was it actually?
Let's go back and just peek really quickly.
What was the invoice price on this?
$41,290.
You know, and the stair step program
that they had in place
and that they're moving towards in 2026.
Well, it doesn't include $6,000 in extra money
to the dealer.
I mean, I believe the maximum amount moving forward
is $1,000 if you hit your objective.
So it will be interesting.
I look forward to seeing what Wasler and Nissan has to say.
And because it's just a suspicion
that that price, the advertised price,
includes rebates and incentives
that nobody can qualify for all of them.
You know, like you need to be a recent college graduate
who happens to be a first responder
and is active for a retired military
all at the same time.
And then whatever other little incentives
or regional incentives there are,
having spent 43 years in retail automotive,
I don't wanna say I'm suspicious of that price
actually happening,
but I am, well, suspicious of that price actually happening.
Here's the online listing.
My opinion, in my humble opinion.
Here's the online listing just to pull it up
just to share that on this how it's advertised.
So $8,500 in savings, you do price details.
It just says it's an $8,500 discount.
So let's see again, whoops.
No, what was the disclaimers?
See dealer for details essentially.
Okay.
Let's see that.
But again, to be clear,
we just initiated the AI negotiating agent
to reach out to the dealership
for this particular vehicle
to negotiate to get that out the door.
So let's see what happens.
We'll check that tomorrow.
So that's Nissan.
That's one side of the spectrum, Dad.
The other side of the spectrum would be General Motors.
Now General Motors for the year, Dad,
actually saw their sales go up 5.6%.
Their sales slipped 7%.
In the fourth quarter a lot of that had to do
with electric vehicles.
One of the things I found super interesting
about General Motors, Dad,
oh, it's down here, dealership inventory,
which includes vehicles in transit
that climb 19% year over year
to 486,000 at the end of December.
So GM is trying to follow the Toyota Playbook
a little bit, tighter inventory,
increasing the sales obviously.
So you're gonna find that dealerships
that are drowning in inventory
and in 2026 have different playbooks
based on the manufacturer.
Your Nissan, your desperation level is different
than General Motors where your actual inventory levels
are down almost 20% year over year.
Yeah, and also the difference
between, say, Nissan and Toyota,
two of the more popular Japanese brands,
the divergence couldn't be any greater.
Toyota has perfected building just enough
or slightly less than enough of vehicles
to match the man.
And Nissan has figured out a way
to continue building more vehicles
than the demand exists for those vehicles.
So one of those dealers is making a boatload of money
and the other one of those dealers
is losing a boatload of money
and wondering how it is
that they're supposed to become profitable.
Yeah, and when you're selling your car
is at maybe an $8,000 or $9,000 discount,
I don't think that's a path to profitability.
Let's come here to the chat dad earlier
in the show, Foreign Runners,
giving roadworthy company some flowers
and a kind of contribution to us
and also saying here that the cost
of all vehicles, pre-purchase inspections
are as important as ever.
So true, protect yourself from junk.
Thank you, Foreign Runners, for that
and thank you, Roadworthy Company.
Dad, do you wanna explain briefly
what a pre-purchase inspection is
and why it's so important
and why you might even recommend it
for some new vehicles
even though it's typically only been reused?
Well, let me phrase it in terms of real estate.
When you buy a home,
one of the contingencies in a home
is it is contingent upon a home inspection.
So what is that?
That's where an independent set of eyes comes in
and goes through the house
and sees if there's any issues with the house.
Well, the same applies to a pre-owned car
and could also apply to some older new cars
that have been sitting around with dealership
lots for a while.
So you wanna get an independent set of eyes
to look over the vehicle, do measurements,
check it all out
and see if there's any issues
that need to be corrected
prior to you taking the vehicle off the lot
and completing the transaction.
Oftentimes, the inspector will find things.
Well, guess what?
When they do find things
that gives you additional negotiating power
to say to the dealership,
well, I need you to A,
either take care of what they found wrong with it
or I need you to lower the price enough
so that I can take care
of what they found wrong with it.
So that's what a pre-purchase inspection is.
It is to get an independent set of eyes
to look at the vehicle
and see what might be going wrong
or what the dealership might have missed
when it reconditioned the vehicle.
Boom.
How did I do?
Sounds like you know what you're talking about,
Pops, which we all greatly appreciate.
All right, we've got the message
we sent to the dealership,
so let's see here.
Well, you'll have to tune in for tomorrow's show.
And actually, as I say that,
we've got an announcement for tomorrow's show,
but we've got the message,
they've texted, they've emailed the dealership,
so let's see here what pricing we end up getting back
when they follow up with us,
so we'll keep you posted on that.
So actually, we will not have a show tomorrow.
I'm in transit, I'm flying out to California,
so we're back on Thursday,
and then unfortunately, I'm also out on Friday.
So tune in on Thursday.
Thursday we've got another show,
we'll have to do an update here
on what happens with this Nissan dealership
advertising a vehicle $9,000 below MSRP.
We'll see what it actually is.
Just $8,500.
$8,500.
Don't exaggerate by an extra $500.
We want an extra $1,000 off.
So that's because, well,
we are an unreasonable consumer.
Yeah, exactly.
And yes, I'm going back to California
so flying out there tomorrow,
but yeah, excited for that.
Dad, let's do it all again on Thursday.
How's that sound?
I shall be available.
And hopefully, when I say it's noon here in Venter,
it'll be 9 a.m. wherever the hell it is in California
that you will be.
Northern California this time, San Francisco.
And so yes, I am looking forward to that.
Cool.
Well, thank you everyone so much for tuning in today.
If we can help you out with anything,
like we said at the outset of the show, caredge.com.
We'll be back here on Thursday.
Enjoy your afternoon and we'll see you back here soon.
Thank you, everybody.
See you Thursday.
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