The Car Market Is FLOODED With UNSOLD NEW CARS | Episode 1056

The hosts are talking about a backlog of unsold inventory—new cars that dealers have on their lots but haven’t been sold yet. When that inventory stays high, it often pressures automakers and dealers to offer bigger discounts, incentives, and more negotiation room.

CarEdge.com is referenced as the sponsor and as the place the hosts use for a “car search” tied to the unsold-inventory discussion. Listeners may want to treat it as a source for current listings, pricing, and inventory data.

The hosts specify that the unsold inventory includes model years 2025 and older. Older unsold new cars often face steeper incentives because they’re harder to sell as newer model years arrive.

To “liquidate inventory” means to sell off remaining stock quickly, often by discounting heavily, to convert cars into cash. In dealership terms, liquidation is typically the end-stage response when cars aren’t moving and capital is tied up.

Inventory management in dealerships is the practice of aligning how many cars a store has on hand with how quickly they sell. The goal is to avoid building up aged, slow-moving stock that ties up cash and can require discounting later.

The Tesla Model Y is an all-electric compact SUV known for its role in the EV market and for being a high-volume model. It’s mentioned in the context of tracking daily sales by model so inventory can be matched to real demand. That makes it relevant to discussions about dealership stocking and how quickly cars move.

“Aged inventory” is unsold stock that has been sitting for a long time, often becoming harder to sell as it gets closer to the next model year. Dealers may need to offer incentives or price cuts to move aged units.

The segment suggests dealers may not be “accruing interest” on the money tied up in remaining 2025 vehicles, reducing the urgency to sell. In practice, dealers’ financing costs and floorplan arrangements can affect how painful it is to hold inventory.

“Replenish their stock with 2026s” means replacing older unsold units with newer model-year inventory. The discussion implies dealers might be delaying that switch despite the potential for 2026 cars to sell sooner.

The Ford Bronco Sport is Ford’s compact SUV built on a smaller platform than the full-size Bronco. In this segment, the hosts are using Bronco Sport inventory data to show how long certain model-year examples are sitting unsold on dealer lots. That “sitting time” is a key indicator of how competitive pricing may be in different regions.

The segment highlights specific examples of Bronco Sport units sitting for extremely long periods (e.g., around 900+ days). Long lot time usually indicates weak demand for that model-year/spec in that area, which can correlate with discounting and incentive offers. It’s a practical way to identify where pricing pressure is likely strongest.

A “buyer’s market” describes a situation where inventory is plentiful and demand is weaker, giving shoppers more leverage. In auto retail, this often shows up as higher days-supply, more discounts, and more negotiating room on out-the-door price. The hosts are using regional inventory data to argue that buyers can find better deals.

The Ford Bronco is a rugged, off-road-focused SUV built for drivers who want capability beyond normal commuting. It’s often discussed in the context of pricing and shopping strategy because demand can vary by trim and model year, affecting whether buyers have more leverage. That’s why it comes up in questions about whether it’s a “buyer’s market.”

“Market days supply” is an inventory metric that estimates how long it would take to sell the current stock of a vehicle at the current sales pace. Higher days-supply numbers generally mean more unsold cars sitting on lots, which can lead to stronger incentives or negotiation leverage. It’s commonly used to compare demand and inventory balance across regions.

Here, “incentive” refers to financial or marketing reasons that would motivate Ford or dealers to reduce prices and sell the remaining vehicles. The hosts argue that if there’s no incentive to clear inventory, prices may stay higher than the market would suggest.

The engine compartment is the area under the hood where the engine and many related components sit. The hosts mention rodents potentially building nests there, which is a storage-related risk for vehicles that sit for long periods. This is relevant because unsold new cars may have been on lots or in storage long enough for pests to become an issue.

The segment links dealer inventory levels to pricing power: when a manufacturer has many unsold new cars, dealers may be more willing to negotiate to reduce stock. This is why the hosts emphasize “best deal” and “precautions” when shopping unsold new vehicles. The underlying idea is that supply pressure can outweigh typical pricing norms.

The Toyota RAV4 is a compact SUV that the hosts use as a reference point for how different brands can have very different inventory and pricing conditions. In this segment, they’re implying that the RAV4 is in a healthier demand position than the other vehicle being discussed.

Recalls are manufacturer-initiated (or regulator-mandated) safety or compliance fixes for vehicles with identified issues. The hosts connect recall frequency to consumer confidence and sales performance, asking how many recalls the Bronco has had and why.

A “value rating” is an evaluation of how well a vehicle holds value relative to others, typically incorporating expected depreciation and ownership costs. Here, the hosts use Car Edge’s grade to argue the Bronco Sport’s value outlook is weak.

Depreciation is how much a vehicle’s value drops over time, often driven by demand, incentives, and perceived reliability. The hosts cite Car Edge’s estimate of total ownership cost where a “lot of that is depreciation,” linking weaker sales to worse value retention.

Trim levels are different versions of the same model with varying equipment and pricing. The hosts say they’ll look at different Bronco Sport trim levels and highlight that a particular trim (“Big Bend”) is disproportionately represented among the more affordable listings.

MSRP (Manufacturer’s Suggested Retail Price) is the sticker price set by the automaker. In a slow market, dealers may discount below MSRP, and the gap between MSRP and the selling price is a key indicator of negotiation leverage.

Invoice price is the amount a dealer pays the manufacturer for a vehicle before dealer markup. Comparing invoice price to MSRP helps shoppers understand how much room there is for discounts and negotiation.

An electric vehicle powertrain is the system that generates and delivers power in an EV, typically including the electric motor(s), battery, inverter, and related control electronics. The hosts use the phrase to frame how EV inventory is behaving differently than gas vehicles in the current market.

The Ford Mustang Mach-E is an all-electric crossover that competes in the EV market. The hosts mention it in the context of Ford EVs and how dealer inventory and incentives are affected when models are discontinued or phased out.

The Ford F-150 Lightning is an all-electric version of the F-150 pickup, combining the practicality of a truck with battery-electric power. The podcast context points to it being discontinued and asks what incentives a dealer might offer when inventory sits for a long time. That’s a common way to gauge negotiation leverage in the EV truck segment.

The Ford F-150 Lightning Flash is a trim of the electric Ford F-150 Lightning lineup. The segment highlights a specific dealer situation: a Lightning Flash sitting unsold for an extended period, showing how pricing and negotiation leverage change when inventory ages.

The Ford F-150 is a full-size pickup truck and one of the most common vehicles on the road, which makes it a frequent topic for pricing, incentives, and dealer inventory. In the podcast context, the discussion centers on how a discontinued model and long sitting inventory can increase negotiation power. That’s why it’s relevant when asking about incentives for dealers holding stock.

This is a sales principle: if a customer hasn’t agreed to buy, the price (or overall deal) likely isn’t attractive enough yet. In a flooded inventory environment, it implies dealers may need to keep reducing price until demand responds.

The hosts are talking about a large backlog of unsold new vehicles sitting on dealer lots. When inventory builds up, dealers typically have to adjust pricing and incentives to move cars, because holding costs and financing pressure increase over time.

“Inventory turn” is how many times a dealership sells through its stock over a period (often measured annually). Higher turns generally mean less money tied up in unsold cars and less risk of having to discount heavily later.

The hosts note that the Wrangler (specifically the four-door version) is also contributing to Jeep’s unsold new-car inventory. Mentioning the body style is relevant because demand can differ between two-door and four-door variants.

“Price point” refers to a specific price range where buyers either start to buy or stop buying. In a market with lots of unsold inventory, dealers often test lower price points to find the level that clears stock.

Flat-spotted tires are tires that develop a temporary or permanent “flat” area from sitting in one position for too long. On used or long-lot-inventory vehicles, this can contribute to ride complaints and may require replacement or extra inspection.

Dead batteries are a common issue for vehicles that sit for long periods on dealership lots. If a battery has been drained repeatedly, it can lead to starting problems and may require replacement before sale.

A lot porter is the person who moves vehicles around the dealership lot, often for staging, cleaning, or test drives. The hosts mention lot-porter mishaps as a source of additional damage that can affect the final cost of the car.

The hosts describe using a map-based inventory tool to find “pockets” of older, longer-sitting vehicles across regions. This is a practical strategy for locating where discounts are likely to be strongest due to higher supply and slower sales.

“Market day supply” is an inventory metric that estimates how long it would take to sell the current stock at the current sales pace. Higher market-day supply generally signals weaker demand and often leads to better buyer incentives.

The Chevrolet Silverado 1500 is the half-ton version of the Silverado pickup line. The segment suggests that Silverado 1500 inventory is a significant portion of Chevrolet’s unsold new-car stock, which can influence pricing and availability.

The Chevrolet Express Cargo Van is a commercial-focused van, and the hosts say it’s one of the main models showing up as unsold inventory. That matters because commercial vehicles often have different buyer demand patterns than passenger cars.

The Nissan Versa is the budget-friendly model the hosts focus on, saying there are thousands of unsold units. They question why a low-cost car around the $20,000 price point isn’t selling faster, and they note regional differences (California and Texas) where the situation varies.

“Pickup truck tax” here refers to an additional cost applied when buying a vehicle in a certain location—likely a local fee or tax that makes pickups more expensive. The hosts use it to explain why demand (and inventory) can differ by state or city.

The Honda CR-V is a popular compact SUV, and the “Touring fully loaded” trim typically means more features than base models. Here it’s used to compare used-car pricing (a 2019 with 73,000 miles) versus buying a new Nissan Versa for less money.

The hosts discuss how a large dealer discount (like $3,600 off) doesn’t automatically translate to a high profit margin. They explain that the car’s MSRP and the underlying economics (invoice price and incentive structure) determine whether a discount is feasible and how much money is actually left for the dealer.

Advertising assistance is manufacturer funding that helps dealers pay for marketing and promotions. In dealer deal math, it’s part of the additional revenue streams beyond the vehicle’s sale price.

Floor plan assistance is support from the manufacturer to help dealers pay the interest and costs of financing their vehicle inventory. The hosts later connect this to the idea that dealers may be using these funds to cover the cost of cars sitting unsold.

Holdback is a manufacturer-to-dealer payment that’s typically calculated as a percentage of the vehicle’s price and paid after the sale. It’s one of the “under the line” income streams that can help dealers make money even when the sale price is heavily discounted.

A “triple net” deal is a way of describing how dealer profitability can depend on multiple layers of manufacturer payments and financing support, not just the sale price. In this segment, the hosts emphasize that the deal structure can be complex enough that dealers may not have much margin from the base transaction alone.

When vehicles sit unsold, dealers incur ongoing costs—especially financing interest and inventory-related expenses. The hosts connect manufacturer assistance (like floor plan support) to covering the extra interest caused by cars staying on the lot.

Nissan is the automaker referenced as providing dealer incentives. In slow inventory conditions, brands like Nissan may use manufacturer-to-dealer incentives to help move specific models.

The finance and insurance (F&I) department is where dealers make additional profit after the vehicle sale. It often involves arranging financing and selling add-ons like warranties or other products, which can be more profitable than the car itself.

“March New Car Sales” refers to monthly industry sales data used to track how many new vehicles are sold. Hosts use it to argue that luxury sales fell while the problem is broader than just expensive cars.

The hosts are talking about Nissan vehicles from the 2025 model year that are sitting unsold at dealers. When a specific model year is heavily discounted, it often means inventory has been on lots longer than expected.

Rust on brake rotors can happen when a car sits, because moisture and air exposure allow surface corrosion to form. Light rust may clean off with driving, but heavy corrosion can lead to vibration, noise, or the need for brake service.

The hosts are pointing out that engines rely on proper lubrication to protect internal components. When a car sits, oil circulation and protective film formation can be less ideal, and some fluids can degrade over time.

The discussion highlights that some new-car warranties may not begin until the vehicle is sold or otherwise activated, rather than when it’s built. That can make an “unsold new” car more attractive than a used one, because coverage may still be fresh.

The segment ties the “flood” of unsold new cars to real ownership implications: cars that sit for long periods can develop issues that may not be covered the same way as typical warranty scenarios. This is a reminder that inventory age can affect inspection priorities even for new vehicles.

The hosts explain how warranty coverage timing can differ between the dealer and the factory. In practice, a car can be “under warranty” in general, but specific coverage may not apply until the vehicle is sold and the retail delivery is reported to the manufacturer.

The FTC (Federal Trade Commission) is referenced in the context of improving transparency in advertised automobile prices. For car shoppers, this matters because pricing can be confusing when ads don’t clearly reflect the final out-the-door cost.

The Toyota Grand Highlander is positioned here as a family-focused SUV with an “adult-sized third row,” meaning it’s marketed for real third-row space rather than a token seat. It’s part of Toyota’s larger three-row crossover lineup aimed at buyers who need more seating capacity.

The Toyota Sienna is referenced as a minivan with an available rear seat entertainment system. This highlights how Toyota differentiates the Sienna for family buyers by focusing on comfort and in-cabin tech for passengers.