Dealers Can't Sell NEW CARS | Ford & Mazda Dealer Joins the Show | Episode 1061

This refers to new vehicles that dealerships have in inventory but can’t sell. The episode is framing a market problem: dealers are stuck with cars they’ve already purchased/received, which affects pricing, incentives, and cash flow.

This refers to the dealership group Joe Lewis represents. It’s a business entity with multiple store locations, relevant because the episode is about how dealers are handling unsold new inventory.

Lincoln is Ford’s luxury brand. In this context, it indicates Joe Lewis manages a Lincoln dealership store, which matters because the discussion is about how specific dealer networks are selling (or not selling) new cars.

Mazda is a Japanese automaker. Mentioning that Joe Lewis manages a Mazda store helps frame the episode’s focus on how dealers across different brands are dealing with unsold new cars.

Ford is a major American automaker. The mention indicates Joe Lewis also has involvement with a Ford dealership, which is especially relevant since the episode title references Ford dealer issues.

The hosts describe using the “CarEdge car search” tool as part of a recurring “live experiment” to quantify dealer inventory. They filter for new cars that are still 2025 or older and then compare counts by brand.

“Dealer inventory” is the stock of new cars a dealership has on its lot (and in its pipeline). When inventory is low—like having “zero” of a certain model—dealers can’t sell what customers want, even if demand exists.

The hosts connect sales issues to “supply and demand,” meaning demand for cars vs. how many cars are available. When supply is tight, dealers may have fewer cars on lots and customers may be pushed toward older model-year vehicles.

“Production constraints” are limits in manufacturing that keep automakers from building enough vehicles on time. These can come from parts shortages, labor capacity, or scheduling changes, and they directly affect how many cars dealers can get.

“Model-year rollover” is the period when automakers transition from one model year to the next, and dealerships receive the newer cars later than expected. If the new model-year cars arrive late, lots can be short on the newest inventory.

The “inventory versus brands” idea is that different automakers can have different levels of unsold stock at any given time. More leftover inventory usually means more discounting and less negotiation pressure for shoppers.

“Lingering 2025s” refers to new cars from the 2025 model year that haven’t sold yet and are still sitting on dealer lots. When inventory ages, dealers often become more motivated to discount the cars to move them.

Incentives are manufacturer- or dealer-funded offers that reduce the effective cost of a new car—often through cash rebates, special financing, or other promotions. They tend to increase when a model year is sitting longer on lots.

“Better rates” refers to lower interest rates on auto loans or financing terms that make monthly payments cheaper. When inventory is aging, lenders and manufacturers may offer more attractive financing to stimulate sales.

“Leftover 25s” means remaining 2025 model-year cars that are still unsold into a later shopping season. These are often discounted because dealers want to clear space and reduce the time cars sit on the lot.

“Aged inventory” refers to vehicles that have been on a dealer’s lot for an extended period. Longer aging often leads to more aggressive pricing or incentives because dealers want to reduce carrying costs and make room for newer stock.

The Ford Maverick is a compact pickup truck sold by Ford. In this segment it’s used as an example of “aged inventory” on a dealer lot—here, the truck has been sitting for roughly 411 days, which typically makes it more negotiable.

A courtesy vehicle is a car the dealer provides to a customer temporarily, usually while their own vehicle is being serviced or repaired. In this context, it’s being used as a loaner, which can affect how long a new car sits on the lot before it’s sold.

A recall is when a manufacturer asks owners to bring vehicles in for a fix due to a safety or compliance issue. If a recall affects a specific vehicle, it can delay sales because the car may be held until the issue is corrected.

A loaner program is when a dealer provides a vehicle to customers temporarily, typically while their car is being serviced. If a new vehicle is used as a loaner, it can end up sitting longer on the lot and may be treated differently by buyers.

“Days old” refers to how long a vehicle has been in inventory since it was built or first put into service. Longer time on the lot often increases the likelihood of discounts and incentives to clear inventory.

XLP appears to be a trim or package designation mentioned in the segment, used to discuss how expensive this Maverick is. However, the exact meaning of “XLP” isn’t clear from the provided transcript alone.

Lariat is a trim level on Ford vehicles, typically indicating a higher equipment package than the base versions. In this segment, it’s used to illustrate that higher trims can push the Maverick’s price up toward $40,000.

“411 days” refers to how long a specific vehicle has been sitting in dealer inventory. Long lot times are a key signal in pricing discussions because the dealer may need to reduce the price to clear aging stock.

The Ford Bronco Sport is a small SUV in the Bronco lineup. The hosts mention multiple Bronco Sports sitting on the lot for hundreds of days, using them to illustrate how dealer inventory aging influences negotiation and incentives.

A floor plan is a financing arrangement dealers use to pay for new vehicles while they sit on the lot. The lender provides the money up front, and the dealer pays interest (and sometimes fees) until the car is sold.

Here, “interest” refers to the cost of borrowing money for inventory financing. When vehicles sit unsold, the dealer continues paying interest on the borrowed amount, which increases the effective cost of holding the car.

In this dealer-finance context, “incentivized” means the dealer is financially motivated to sell vehicles quickly because holding inventory costs money. The interest and financing structure create pressure to move cars off the lot.

Time on dealer inventory (how long a car sits on the lot) can signal issues like an unpopular configuration, higher-than-expected pricing, or slower demand for that specific trim. Dealers often use this as a reason to discount or change strategy to move the unit.

The Lincoln Aviator is a luxury SUV, and the “Black Label” is Lincoln’s top-tier trim level. A “Black Label” model typically includes more premium features and options than lower Aviator trims, which is why this specific 2025 example is described as one of the most expensive builds.

“Black Label special edition” refers to a specific higher-content variant within the Black Label trim. In practice, it usually means additional unique styling and/or equipment beyond a standard Black Label build, which can affect both pricing and how quickly it sells.

A “full rear console” is a center console area for rear-seat passengers, typically including storage and controls and sometimes rear climate/charging features. It’s a premium cabin feature that can make a luxury SUV more appealing for families and road trips.

“Asher Gray metallic paint” is a specific exterior color option, and “metallic” indicates the paint contains metallic flakes that change how it reflects light. The speaker also notes it as a priced option (“a 750 ad”), meaning it adds cost to the vehicle.

“Reserve” here is being used as a trim level above the base Aviator but below Black Label. The speaker contrasts it with Black Label pricing and describes it as the “nicer trim level” in a certain price band.

In this context, “sticker” means the manufacturer’s suggested retail price (MSRP) shown on the vehicle’s pricing sheet. The speaker is saying the dealer was only allowed to advertise the car at that MSRP figure for about a year due to “Black Label rules.”

“Black Label rules” refers to dealer marketing restrictions tied to the Black Label program. The speaker explains that for a period, dealers couldn’t advertise discounts or other pricing and had to show only the sticker price on their website.

MAP pricing stands for “minimum advertised price.” It’s a policy where an OEM (car manufacturer) sets the lowest price that dealers are allowed to advertise publicly, even if the dealer can sell for less. The goal is to prevent price wars and keep the brand’s pricing structure from collapsing.

OEM means “original equipment manufacturer,” i.e., the company that builds the vehicles. In this context, the OEM controls dealer advertising rules like MAP pricing and can restrict aggressive pricing until certain sales/inventory targets are met. That’s why dealers may be contractually limited in how they market discounts.

Minimum advertised pricing is the full phrase behind MAP pricing. It limits how low dealers can advertise a vehicle’s price, which can delay aggressive promotions until the manufacturer’s conditions are met. In practice, it affects how quickly shoppers see discounts online.

“Call for price” is a sales tactic where the dealer avoids publishing a specific advertised price. The segment suggests this can be used to comply with brand rules while still letting shoppers request a quote (sometimes via a website) rather than seeing a lower-than-MSRP price publicly.

“Inventory” is the stock of vehicles a dealership currently has available to sell. Splitting it into “new” and “used” matters because those categories have different pricing, demand, and turnover rates.

A “pressure test” is a way to challenge an assumption or estimate by putting it under scrutiny. Here, the host’s inventory numbers are being questioned against the dealer’s real data.

“Two month supply” is a dealer inventory metric that estimates how long the current stock would last if sales continue at a steady pace. The speaker says they’ve historically kept closer to a two-month level, then tried to increase it.

A “three month supply” means the dealer currently has enough inventory to cover roughly three months of sales at their current selling rate. The speaker is pleased with this level because it gives them more cars to sell.

Rebates are manufacturer-funded discounts offered to buyers, typically to reduce the effective price of a new vehicle. The speaker notes that rebates are “good,” implying stronger incentives that can help move inventory.

The Mazda CX-5 is Mazda’s compact crossover SUV, and the speaker is discussing the 2026 model’s arrival and how customers are responding. They mention pricing relative to the MSRP and note a change to the interior shifter/knob that affects some buyers.

The “shifter knob” refers to the physical gear-selection control in the center console. Some buyers prefer traditional shifter designs, so removing or changing it can be a point of emotional attachment even if the driving experience is similar.

“Unsold cars” refers to vehicles that are sitting on a dealer’s lot without being sold yet. The longer cars remain unsold, the more pressure dealers feel to “turn it over quickly” through pricing, promotions, or incentives.

“Turn it over quickly” is dealer-speak for selling cars fast and replacing them with new inventory. It helps reduce the time cars sit on the lot and limits how much the dealer has to discount later.

“Inventory gets real scarce” means there are very few cars available for dealers to sell. When supply is tight, dealers can often keep prices higher because customers have fewer alternatives and wait times increase.

In this context, “discount” means reducing the sale price (or effectively lowering it with incentives) to move inventory. Dealers discount more when they have too many cars sitting on the lot.

A “factory rep” is a representative from the automaker who monitors dealer performance and inventory flow. The speaker is implying the automaker expects the dealer to sell cars rather than let them pile up.

“Oversupply of inventory” means dealers have more cars on hand than shoppers are buying. When that happens, dealers may struggle to sell new cars at full price and may rely more on incentives or discounts.

“Days supply” is an inventory metric that estimates how long it would take to sell the current number of vehicles at the current sales rate. Higher days supply usually signals slower demand and often leads dealers to offer bigger discounts to move cars.

“Miata” is a nickname for the Mazda MX-5 Miata, a small two-seat roadster. In this segment, it’s mentioned as one of the models sitting on dealer lots longer than usual due to high inventory.

The Mazda CX-30 is a compact crossover SUV. The speaker uses it as an example of a model with a very high “days supply” figure, meaning the dealer has enough inventory to last far longer than typical sales pace.

In dealer sales operations, “authorized” refers to the limits placed on salespeople for what they can approve—often including discount levels, incentives, or deal structure. The speaker is setting up how much flexibility sales staff have when inventory is high.

The Toyota Supra is a performance sports coupe built for quick acceleration and a driver-focused experience. It’s significant in sales discussions because it can be a high-demand model, but its “days supply” can still vary based on trim and market conditions. In the podcast, it’s referenced in the context of what counts as above-average inventory time (over 90 days).

“Day supply” is a dealer inventory metric that estimates how long current stock would last at the current sales pace. A “less than a 60 day supply” implies relatively tight inventory, which usually supports more urgency to sell or more leverage in pricing.

A “hundred seventy six day supply” is an inventory metric indicating how many days of sales the current stock would cover. Compared with a short supply, a very high day-supply number suggests the dealer has more cars than it can sell quickly, which can lead to more aggressive sales pressure.

The Lincoln Navigator is a full-size luxury SUV designed for comfortable seating, a spacious interior, and a more upscale driving experience. It’s brought up in the podcast in the context of comparing Lincoln models and how salespeople should communicate product differences. The mention of the Navigator alongside the “Aviator” points to dealership conversations about which vehicle fits a customer’s needs.

“Inventory has grown” refers to the dealer receiving more vehicles than before, which changes how the sales team is managed. When inventory builds, dealers often shift from waiting for demand to actively pushing sales to avoid cars sitting unsold.

An internet lead is a potential customer who contacts the dealership through online channels (like a website form, email, or online inquiry). Dealers track these leads because they often convert into sales, and the dealership wants sales teams to respond quickly and effectively.

Average gross profit is the average profit a dealership makes from each car sale before operating expenses. When inventory is high and dealers discount, gross profit per vehicle can drop.

Commission is the salespeople’s pay tied to sales performance, often based on profit or units sold. If gross profit per car drops, commission can also drop unless the dealer sells enough additional volume to make up for it.

In sales, volume means the number of vehicles sold over a period. Dealers may accept lower profit per car when volume increases, so total earnings can stay steady.

MSRP stands for Manufacturer’s Suggested Retail Price. It’s the price the automaker publishes as a baseline, before dealer fees and add-ons. Dealers often advertise discounts or markups relative to MSRP.

FTC refers to the U.S. Federal Trade Commission, which enforces consumer protection and advertising rules. In this context, they’re saying the FTC is requiring certain pricing information to be advertised transparently. That’s why the hosts mention MSRP and fees being shown.

A dock fee is a charge a dealer adds to cover costs of getting the vehicle from the port (or rail yard) to the dealership. It varies by state and dealer, and it can significantly affect the out-the-door price shoppers pay. In the segment, they’re discussing the average dock fee in Georgia.

This describes a dynamic pricing strategy where a dealer changes advertised prices on a schedule based on inventory age and market conditions. In the segment, they tie it to how long a vehicle has been sitting (over a 90-day mark) and then apply a discount off MSRP. It’s meant to explain how dealers can move prices over time.

“Invoice” refers to the price the dealer pays the manufacturer for the vehicle (often called the dealer invoice). It’s commonly used as a benchmark for whether a deal is “good,” because discounts below invoice can indicate the dealer is selling with little or no margin. The segment claims the car is already under invoice.

Holdback is a manufacturer-to-dealer payment (often a percentage of the vehicle’s price) that the dealer receives after the sale. It’s part of how dealers can profit even if the sticker price looks low.

A dealer fee is an extra charge added by the dealership on top of the vehicle’s base price. It can be negotiable or fixed depending on the dealer and the state, and it’s often where “discounts” get offset.

Tag and title fees are charges related to registering the vehicle and transferring ownership paperwork. They’re often required, but the amount varies by dealer and location, so they should be itemized on the final quote.

Dealer installed options are features added by the dealership after the vehicle arrives (or bundled as part of the deal) rather than being factory-installed. Because they’re added by the dealer, they can come with markup and should be itemized and priced separately.

Accessories are add-on items installed on the vehicle (or bundled with the sale) such as protection packages, electronics, or appearance items. Dealers may price these as optional, but they can be used to inflate the deal price.

The “out the door price” is the total amount you pay to buy the car, including the vehicle price plus taxes, registration, and dealer fees. It’s a practical way to compare offers because it reflects the final checkout number rather than just the advertised price.

“Job one” is shorthand in the auto industry for the first priority production schedule—typically the main, highest-volume work a plant is set up to build. Saying “Walter is no longer job one” implies the company’s top production focus has shifted away from that item.

Memorial Day weekend is a major U.S. shopping period for new cars, and manufacturers often time promotions to coincide with it. Dealers may increase advertising and incentives around the holiday to boost traffic and sales.

“Advertised price” is the price a dealer lists publicly (often online) to attract buyers. In dealer pricing discussions, it matters because changing it can affect how aggressively the dealer can market the vehicle.

“Pricing rules” are automated or policy-based guidelines that control how a dealer adjusts vehicle prices over time. Here, the host describes a recurring schedule that lowers price every 30 days and allows further reductions if needed.