0:00 / 0:00
Dealers Can't Sell 1,000,000 LEFT OVER NEW CARS | Episode 990

Dealers Can't Sell 1,000,000 LEFT OVER NEW CARS | Episode 990

CarEdge Live Dec 29, 2025 36 min
0:00
0:00

About this episode

Over 1 million new cars from the 2024 and 2025 model years are left unsold as we approach 2026, creating a unique opportunity for buyers. The hosts discuss how dealerships are motivated to clear this inventory, often offering significant discounts. They dive into the implications of unsold vehicles, including potential issues like 'lot rot' and the importance of pre-purchase inspections. The episode also covers how warranties work for these unsold cars and offers insights on negotiating better deals as the year-end approaches.

Filter:
|
Technical Too Afraid to Ask
Brand

Penske

"Well, if you're working for Mr. Roger Penske, you're getting an SD email because you're not supposed to have any of last year's model year vehicles left over moving into the new year."

Penske is a company that owns many car dealerships, so when someone talks about them, they’re referring to those stores.

Concept

dealership

"But it puts extra pressure on the dealerships to get rid of them."

A dealership is a place where you can buy cars, like a big car shop.

Concept

model year vehicles

"So as a dealership employee, you're looking at it as I have to do whatever needs to be done to see to it that those vehicles, the remaining 2024s and God knows you shouldn't have any of those."

Cars are grouped by the year they were made, and dealers want to sell older cars before a new model comes out.

Concept

lot rot

"And unlike a fine line, cars don't because lot rot takes its toll."

When cars sit on a dealership lot for too long, they can get damaged by rain, sun, or dust—this is called lot rot.

Car

Ford F150

"Ford at the beginning of the month had 16,298 leftover 2024. So if I'm a Ford dealer out there and I'm sitting on a leftover 2024 F-150 and we are now five days away from 2026, what am I doing to get rid of that new 2024 F-150 that's still on my lot?"

The F‑150 is a big truck that people use for work and fun. It’s popular because it can haul heavy loads and still feel comfortable inside.

Concept

used car depreciation

"To your point, who knows if it's actually two years old, but the two-year model years, I mean, that would have been depreciated as a used car."

Cars lose value quickly after you buy them. Knowing how much a car has dropped in price can help you decide if it’s a good deal.

Part

manufacturing plate

"Just open up the driver's door and on the pillar or at the bottom of the pillar ... will be a manufacturing plate that will list the VIN number and the month and year..."

Inside the car, near where you sit, there’s a little plate that shows when and where the car was made. It helps you know how old the car really is.

Term

VIN number

"Just open up the driver's door and on the pillar or at the bottom of the pillar ... will be a manufacturing plate that will list the VIN number and the month and year..."

Every car has a special code called the VIN that tells you exactly what make, model, and year it is. It’s like a birth certificate for the vehicle.

Car

Chevrolet Tahoe

"This Chevy Colorado is going to be more negotiable than the Tahoe right next to it..."

It’s a big SUV made by Chevrolet that can carry families and tow trailers.

Car

Chevy Colorado

"This Chevy Colorado is going to be more negotiable than the Tahoe right next to it..."

It’s a small pickup truck made by Chevrolet that can haul cargo and do light work.

Concept

2024 model year

"And that's a great idea if you're buying especially at 2024 because to your point, it could be well over two years old right now heading into its third birthday post-production."

It means the car was made in 2024, so it has newer features and updates.

Term

battery issues / constant draw

"There are constant draws on batteries whether the car is turned on or not because of all the electronics and technology that's built in."

It means the car’s battery can lose charge even when it’s not running because of gadgets inside.

Term

battery charge

"So you want to make sure that the battery has the requisite charge so that I don't know 30 days after you purchase it, you're not buying a battery."

Make sure the battery is fully charged when you get the car so it starts right away.

Term

dealer auctions

"Those dealers will sell those cars. They may not get sold to a retail customer. They may get sold as used cars at the dealer auctions."

Dealer auctions are places where car dealers sell their leftover cars to other people or businesses. It’s a way to get rid of cars that didn’t sell in stores.

Brand

Acura

"let's say you're buying a new, I don't know, Acura, but from a Lexus dealership"

Acura is Honda’s premium car brand, making cars that are often more upscale and reliable.

Brand

Lexus

"but from a Lexus dealership, like you've got questions to ask"

Lexus makes luxury cars that are known for being very reliable and comfortable.

Concept

Car Edge Car Search

"So for those of you that are unfamiliar on the Car Edge Car Search, you can click Make Model or Vin. We've entered a Vin here."

Car Edge Car Search is a website feature where you can look up cars by typing the brand, model, or the car’s unique code (VIN). It helps you find details about a vehicle fast.

Car

Ford F150 Lightning

"And that will then pull up a vehicle. So here we, oh goodness. We've got a 2023, pull the comments off, 2023 new Ford F-150 Lightning Platinum. Now for those of you that don't remember, these electric vehicles from Ford, the dealer invoice price was the same"

The Lightning is a truck that runs on electricity instead of gas. It can still pull big loads but it’s quiet and doesn’t produce exhaust fumes.

Car

Mazda Cx5S

"He said something about incentives that made no sense. Any input on this, it took me by surprise because of Mazda CX-5S. So, Dad, this is in Florida, which I also love to see. Will the out-the-door price change by $2,000 if I choose a 60-month financing and put $10,000"

The CX‑5 is a small SUV that feels like a car when you drive it. It’s comfortable, good on gas, and has a nice interior.

Term

customer cash incentive

"From space, however, Mazda CX-5 has a $2,000 customer cash that cannot be stacked with a special APR."

It’s a money‑off deal that the dealer gives you right away when you buy. Think of it as a coupon that lowers what you pay for the car.

Term

special APR

"From space, however, Mazda CX-5 has a $2,000 customer cash that cannot be stacked with a special APR."

It’s a special, lower interest rate you can get on your car loan for a short time. It helps you pay less money over the life of the loan if you qualify.

Term

taxable

"well, the rebate shouldn't be taxable. Well, in some states it is."

Taxable means the amount you pay might have sales tax added, depending on state rules.

Car

Ford Maverick

"...d the dealer for an outdoor price on a 2025 Ford Maverick XL Hybrid, listed at $29,400 and online had a dea..."

The Maverick is a small truck that’s easy to drive and saves gas. It’s a good choice for people who need a pickup but don’t want a huge vehicle.

Term

sales tax rate

"you can add somewhere between 8% and 12% to the agreed upon selling price in order to come up with your outdoor price."

It’s the extra money you pay to the government based on how much the car costs and where you live.

Term

motor vehicle fees

"I don't know what the motor vehicle fees are."

These are extra costs the state adds when you register your car, like a registration fee and title fee.

Term

days on market

"you can see inventory on particular cars. How many for sale and days on market, etc."

When a car sits on the dealer’s lot, each day it counts as one day on market. A low number means it sells fast; a high number means it’s been there long.

Term

inventory

"you can see inventory on particular cars. How many for sale and days on market, etc."

A dealer’s inventory is the list of cars they have on their lot. Knowing how many cars are available can tell you if a model is popular or rare.

Car

Mazda Cx50

"prices on Mazdas will continue to soften. When I make my deal, the dealership is telling me why wait the prices will be higher in 2026. We have a CX-50 right now. Do you have any insight to share on 2026 Mazdas? Yeah, Dad, the prices of 2026 new vehicles will be higher than 2025 new vehicles."

The CX‑50 is a small SUV that looks tough and can handle light off‑road adventures. It’s still easy to drive on the highway.

Term

MSRP

"...raising new car prices without changing the MSRP..."

MSRP is the price a car maker says you should pay for a new car before any extra charges like dealer fees or destination costs are added.

Term

destination fees

"...destination fees get jacked up."

Destination fees are extra money you pay so the car can travel from where it’s built to the dealership where you buy it.

Car

Hyundai Ionic

"...ff here, Dad, I thought I had settled on my 2025 Hyundai Ionic 5 SEL to lease, having terrible luck with my Los ..."
Car

Tesla Model

"...al on here, but what do you think of the current Tesla Model Y lease, and do you think there are better optio..."

The Model Y is a car that runs on batteries and can drive about 300 miles on one charge. It’s known for its quick acceleration and lots of tech features.

Term

community forum

"on the community forum, where there would be people who are familiar with it and could help"

It's like a chat room where people talk about cars.

Car

Toyota Camry Hybrid

"... much should I expect off MSRP on a 2025 or 2026 Camry hybrid? We've got the zip code here. Also, do we lose Bl..."

The Camry Hybrid is a car that uses both gas and electricity to save fuel. It’s known for being reliable and comfortable.

Brand

Blackbook

"do we lose Blackbook on car traffic?"

BlackBook gives you the price a car is worth on the used-car market.

10 cars featured

Request an Explanation

Heard something you'd like explained? We'll add it to this episode.

Sign in to request explanations for terms you heard.

Want to learn more?

Browse our glossary for plain-English explanations of automotive terms, jargon, and concepts.

Explore Terms

Help improve this episode

See something that's not quite right? Our annotations are AI-generated and can sometimes miss the mark. Click the flag icon on any annotation to suggest a correction.

Report incorrect info
Suggest better explanations
Flag missing cars