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These Automakers Can't Lower Prices Fast Enough | Episode 1096

These Automakers Can't Lower Prices Fast Enough | Episode 1096

CarEdge Live Jun 24, 2026 31 min
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About this episode

Automakers can’t cut prices fast enough, and the hosts dig into why: inventory is piling up, lease penetration is sliding, and “nobody buys base” pricing doesn’t match what shoppers see in ads. They cite average new-car transaction prices near $52,000 and Cox Automotive/KBB data showing big gaps between MSRP and what’s actually built. The conversation spotlights Slate’s $24,950 electric truck, demand signals like 180,000 reservations, and even nameplate nostalgia like the Honda Element.

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Technical Too Afraid to Ask
Concept

oversupply of inventory

"[551.8s] Now, you and I have had some interesting guests recently. [554.5s] Obviously, we had Joe Lewis a while back with Mazda who has an oversupply of inventory. [558.5s] We had Tyler from Ackerman Toyota earlier this week, and he has an undersupply of inventory."

It means there are too many cars sitting around compared to what people are buying right now. When that happens, car sellers usually have to offer deals to get rid of them.

Concept

undersupply of inventory

"[558.5s] We had Tyler from Ackerman Toyota earlier this week, and he has an undersupply of inventory. [562.8s] So there's nuance here. [564.3s] But there are certain automakers, Dad, that are seeing more red than they are black in"

It means there aren’t enough cars available for buyers. When supply is tight, it can be harder to find the car you want and prices may not drop as quickly.

Term

lease penetration rates

"[575.4s] Absolutely, it is. [577.0s] I mean, I'm shocked that lease penetration rates are down. [581.6s] That to me is one of the most important statistics that any of these manufacturers,"

This is how many cars are being leased instead of bought. If fewer people lease, it can change how fast car companies can sell cars and how soon those customers come back later to buy or lease again.

Concept

negative equity

"[607.5s] If you're putting them into a 67 or eight year loan, even if they wanted to [613.7s] come back in three years, they can't because there's so much negative equity associated"

Negative equity means the car is worth less than what you still owe on it. So when you try to switch cars, you may have to deal with that “owes more than it’s worth” problem first.

Term

incentive dollars

"So to see that lease penetration going backwards again, that should be a warning sign for the automakers out there that perhaps they're spending their incentive dollars in the wrong place."

Incentive dollars are the discounts or promotional money a car company offers to make a car cheaper. The idea is to get more people to buy, but if it’s not working, it’s a sign something else is wrong.

Term

day supply of inventory

"It's the day supply of inventory. We look at this all the time."

Day supply of inventory is a way to estimate how many days the cars on lots would last. If it’s high, it means there are too many cars and not enough buyers, so prices and incentives usually have to change.

Concept

incentives

"These are the automakers that are lowering prices, that are offering big incentives whose dealers are feeling the pain most right now."

Incentives are the deals a car company offers to help you buy or lease. If the incentives aren’t getting people to shop, it can mean the overall pricing or value still isn’t attractive enough.

Brand

Land Rover

"Many with a 99 days supply almost there on the cusp of 100, Land Rover, Genesis, Mitsubishi, Volkswagen, Buick, Chrysler, Ram, Jeep, Dodge, all of these brands have a 100 or or nearly 100 days supply of inventory, meaning that they're in a position where they are inundated with inventory and not enough customers are buying them."

Land Rover is one of the brands called out as having a lot of cars sitting around relative to sales. That usually means the company may need to offer bigger deals to move inventory.

Brand

Mitsubishi

"Many with a 99 days supply almost there on the cusp of 100, Land Rover, Genesis, Mitsubishi, Volkswagen, Buick, Chrysler, Ram, Jeep, Dodge, all of these brands have a 100 or or nearly 100 days supply of inventory, meaning that they're in a position where they are inundated with inventory and not enough customers are buying them."

Mitsubishi is included in the list of brands with lots of cars sitting on lots. That’s a sign sales aren’t keeping up, so incentives or price cuts may be needed.

Brand

Genesis

"Many with a 99 days supply almost there on the cusp of 100, Land Rover, Genesis, Mitsubishi, Volkswagen, Buick, Chrysler, Ram, Jeep, Dodge, all of these brands have a 100 or or nearly 100 days supply of inventory, meaning that they're in a position where they are inundated with inventory and not enough customers are buying them."

Genesis is one of the brands mentioned as having too many cars on hand compared to demand. When that happens, brands often have to offer stronger discounts to sell them.

Brand

Jeep

"Many with a 99 days supply almost there on the cusp of 100, Land Rover, Genesis, Mitsubishi, Volkswagen, Buick, Chrysler, Ram, Jeep, Dodge, all of these brands have a 100 or or nearly 100 days supply of inventory, meaning that they're in a position where they are inundated with inventory and not enough customers are buying them."

Jeep is one of the brands called out for having too many cars on hand. That usually means sales aren’t keeping up, so incentives or discounts may rise.

Brand

Dodge

"Many with a 99 days supply almost there on the cusp of 100, Land Rover, Genesis, Mitsubishi, Volkswagen, Buick, Chrysler, Ram, Jeep, Dodge, all of these brands have a 100 or or nearly 100 days supply of inventory, meaning that they're in a position where they are inundated with inventory and not enough customers are buying them."

Dodge is mentioned as having a lot of inventory relative to sales. When cars sit too long, brands typically respond with bigger incentives to sell them.

Brand

Volkswagen

"Many with a 99 days supply almost there on the cusp of 100, Land Rover, Genesis, Mitsubishi, Volkswagen, Buick, Chrysler, Ram, Jeep, Dodge, all of these brands have a 100 or or nearly 100 days supply of inventory, meaning that they're in a position where they are inundated with inventory and not enough customers are buying them."

Volkswagen is one of the brands said to have a lot of inventory compared to sales. When that happens, it often leads to more discounts to get cars moving.

Brand

Ram

"Many with a 99 days supply almost there on the cusp of 100, Land Rover, Genesis, Mitsubishi, Volkswagen, Buick, Chrysler, Ram, Jeep, Dodge, all of these brands have a 100 or or nearly 100 days supply of inventory, meaning that they're in a position where they are inundated with inventory and not enough customers are buying them."

Ram is mentioned as having a lot of inventory compared to sales. When that happens, the brand often needs to offer stronger deals to move vehicles.

Brand

Chrysler

"Many with a 99 days supply almost there on the cusp of 100, Land Rover, Genesis, Mitsubishi, Volkswagen, Buick, Chrysler, Ram, Jeep, Dodge, all of these brands have a 100 or or nearly 100 days supply of inventory, meaning that they're in a position where they are inundated with inventory and not enough customers are buying them."

Chrysler is one of the brands said to have inventory sitting longer than it should. That’s typically a sign sales are lagging, so incentives may increase.

Term

93 day supply

"but they're right there at a 93 day supply. And General Motors with their sales being down is especially interesting because if I come here,"

“Day supply” is a way to measure how many days of car sales a dealership’s current inventory can cover. If it’s high, it means there are a lot of cars sitting around; if it’s low, the lots are closer to being sold out.

Company

General Motors

"And General Motors with their sales being down is especially interesting because if I come here, Chevrolet actually has a 72 day supply of inventory."

General Motors is a big car company that makes multiple brands of vehicles. Here, they’re mentioned because their sales performance affects how many cars are sitting in inventory.

Brand

Chevrolet

"if I come here, Chevrolet actually has a 72 day supply of inventory. So there's a lot of pressure right now."

Chevrolet is one of GM’s car brands. The host mentions it to show how many days of cars are available on lots, which can hint at whether prices may need to drop.

Brand

GMC

"Now, Catalan-Rack only has a 62 day supply. So which brands is it? It looks like it's GMC and Buick because Buick is sitting at 113 day supply."

GMC is a GM brand, especially associated with trucks and SUVs. The host brings it up because the inventory numbers suggest how hard it might be to move vehicles without incentives.

Brand

Buick

"It looks like it's GMC and Buick because Buick is sitting at 113 day supply. Yeah. That'd be a lot of cars."

Buick is a GM brand. The host cites Buick’s inventory “day supply” to suggest there are more cars sitting around longer than some other brands, which can lead to discounts.

Term

base options

"between affordable options, which all these manufacturers are able to market the fact that they actually do have affordable options and like, oh, Joe, we're going to come to you next. But not a lot of people actually buy the base options that these manufacturers produce."

“Base options” refers to the lowest-trim, lowest-cost versions of a vehicle as marketed by automakers. The host’s point is that even when brands advertise affordability, many buyers don’t actually purchase those entry-level configurations.

Company

Cox Automotive

"And we have some really interesting data here from Cox Automotive. Let me pull this up on the screen."

Cox Automotive is a company that collects and analyzes car-buying and pricing data. Here, they’re used as a source for the idea that the price you see in ads usually isn’t the price people actually end up paying.

Term

KBB average MSRP

"We've got the KBB average MSRP versus the published base MSRP. So manufacturers, Toyota can go out there and say for the Corolla starting at $22,150."

KBB is a well-known car pricing guide. MSRP is the sticker “starting price” the manufacturer lists, and the host is comparing those numbers to show that real purchase prices are usually higher than the ad starting point.

Car

Corolla

"But the average MSRP of a Corolla, they actually build $26,412."

The Toyota Corolla is a very common, affordable car. Here, they’re saying the price Toyota advertises isn’t what you usually end up seeing in the real average price.

Car

Chevrolet Trax

"The Chevy Trax, Chevrolet can come out and say starting at $21,600. But the Chevy Trax in average has almost a $27,000 MSRP."

The Chevrolet Trax is a small SUV/crossover. They’re pointing out that the advertised starting price is lower than the average price people end up paying.

Car

Toyota RAV4

"...ge has almost a $27,000 MSRP. Look at this at the RAV4 down here at the bottom. $31,900 base MSRP for a ..."

The Toyota RAV4 is a compact SUV, meaning it’s a taller vehicle than a car and designed for everyday driving and family use. The podcast mentions its starting price (about $31,900) to show where it lands in cost. It’s often talked about because it’s a common choice for people who want an SUV without going too big.

Concept

manufacturers say one thing and then build something else

"So this actually corroborates exactly what you've been saying forever, which is the manufacturers say one thing and then build something else."

They’re saying automakers advertise low prices, but what they actually make and stock tends to be more expensive. So customers end up seeing higher average prices than the ads suggest.

Term

3D surround cameras

"It's packed with tech like 3D surround cameras, clear site ground and rear views, driver assist features and an intuitive infotainment system."

“3D surround cameras” are cameras around the car that combine their views. They help you see what’s around the vehicle, which is especially useful when parking or driving slowly.

Term

clear site ground

"It's packed with tech like 3D surround cameras, clear site ground and rear views, driver assist features and an intuitive infotainment system."

“Clear site ground” sounds like a camera feature that helps you see the ground better around the car. That can be really helpful when you’re off-road and can’t easily judge what’s under or in front of the tires.

Term

driver assist features

"It's packed with tech like 3D surround cameras, clear site ground and rear views, driver assist features and an intuitive infotainment system."

“Driver assist features” are technologies that help the driver avoid problems. They can assist with things like staying in the lane or warning you about hazards, but you still have to drive.

Car

Defender 130

"With three models, the Defender 90, 110 and 130. There's a defender for every kind of adventure from city streets to remote trails."

The Land Rover Defender 130 is the biggest Defender version. It’s designed for maximum space while still being built for off-road adventures.

Brand

Slate

"without talking about what Slate just announced. [1352.4s] Now, Slate, for those of you that are unfamiliar, is the Jeff Bezos backed [1356.4s] automaker that also now has a connection with Carvana, which is super interesting."

Slate is a newer car company the hosts are talking about. They say it’s tied to Jeff Bezos and connected to Carvana, and they’re focusing on how much its new electric truck costs.

Brand

Carvana

"is the Jeff Bezos backed [1356.4s] automaker that also now has a connection with Carvana, which is super interesting."

Carvana is a company that sells cars directly to customers. The hosts are saying it has some kind of connection to Slate, which could change how the truck gets sold.

Concept

make them money

"There's CEO Peter R.C. told CNBC that every vehicle the company produces [1374.0s] will actually make them money, which is a crazy concept in the auto industry."

They’re talking about whether the company expects to profit on every vehicle it sells. The usual EV approach is to lose money at first and try to make it up later, so this claim is presented as unusual.

Car

Truck Slate Ev

"And that's what a Slate EV pickup trucks going to be. It is going to be as bare bones as you can get."

They’re discussing an electric pickup truck concept from Slate that’s meant to be as cheap as possible. The goal is a simple EV truck with fewer features so more people can afford it.

Term

EV

"And that's what a Slate EV pickup trucks going to be. It is going to be as bare bones as you can get."

EV means electric vehicle. It runs on electricity from a battery instead of using gasoline.

Concept

bare bones

"It is going to be as bare bones as you can get. Yeah, the concept, the idea behind it is."

“Bare bones” means the truck is built with only the most necessary features. The idea is to keep the price down by not adding lots of extras.

Car

Ford Model T

"...or color. Yeah, you know, it's it's it's like the Model T, the original Ford salesman. Would you prefer it ..."

The Ford Model T is a very old car from the early days of automobiles. It’s famous because it was one of the first cars made in large numbers at a lower cost. The podcast brings it up as a historical reference point.

Concept

under $25,000

"So so the concept of having something under $25,000, $10 under $25,000. Still counts."

They’re talking about keeping the price below $25,000. That kind of price point can bring in buyers who normally wouldn’t shop for an EV.

Car

Ford F-150 Lightning

"... go. OK. So they have, you know, Ford had 150,000 lightning deposits three seconds after they they they turne..."

The Ford F-150 Lightning is a pickup truck that runs on electricity instead of gasoline. The podcast talks about how many people put down deposits very quickly, showing strong early interest. It’s a notable model because it brings electric power to a truck-style vehicle.

Car

Hyundai Venue SE Hyundai Ultra Limited

"Hyundai Venue SE Hyundai Ultra Limited Chevy Trax Trax."

The Hyundai Venue is a small, budget-friendly SUV. “SE” and “Ultra Limited” are different versions of the same model, and they can have different features and prices.

Car

Kia K4.

"Any other options here? [1609.5s] Kia K4."

The Kia K4 is a Kia car model. They’re talking about it in the context of people shopping for cheaper cars under about $25,000.

Concept

cross shop

"I don't think someone's out there, [1649.7s] cross shop and Hyundai venues and Slate pickups, [1651.9s] but maybe maybe they will just because they're looking sub 25 K."

“Cross shop” means you look at a few different cars from different brands before choosing one. They’re debating whether the same people will consider both models.

Concept

sub 25 K

"I don't think someone's out there, [1649.7s] cross shop and Hyundai venues and Slate pickups, [1651.9s] but maybe maybe they will just because they're looking sub 25 K."

“Sub 25 K” means “under $25,000.” They’re talking about buyers who are shopping in that budget range.

Car

Ford Ranger

"Small pickup trucks like the Ford Ranger were pretty popular. Mazda had had their version of it."

The Ford Ranger is a smaller pickup truck. The hosts mention it because it’s the kind of truck people associate with their younger years and may want again for nostalgia.

Car

Honda Element

"I saw today that that Honda is going to bring back the element. Yeah, that's another big story we should probably cover."

The Honda Element is a boxy, utilitarian crossover/SUV built around practicality and a distinctive “youthful” look. Here, the hosts say Honda is bringing it back, framing it as a nostalgia-driven product that can shift who buys and how pricing pressure plays out.

Concept

nostalgic buyer

"But a lot of these things bring about a nostalgic buyer. So young people."

A nostalgic buyer is someone who wants a car because it reminds them of their past. In this segment, they’re saying nostalgia can pull in a different group of people and influence pricing.

Concept

downward pressure on pricing

"That is downward. It is downward pressure on pricing, no matter how you slice it."

“Downward pressure on pricing” means the market is pushing prices down. The hosts are saying that the mix of buyers and demand can affect how low prices go.

Car

Chevy Colorado Trail Boss

"You have made the process of buying my new Chevy Colorado Trail Boss absolutely painless and actually fun... We were seriously out of the dealership with the new Trail Boss in 21 minutes."

This is a Chevrolet midsize pickup truck. “Trail Boss” is a special version meant to handle rougher roads better than a basic model, and the caller is saying the buying process for it was fast and easy.

Term

AI negotiator

"We used your AI negotiator for the $49.99 and saved at least $2,500... once we had agreed on our out the door, the negotiator basically finalized the numbers."

They’re talking about a tool that uses AI to help negotiate the car price. Instead of lots of haggling, it helps get to an agreed price and final paperwork faster.

Term

$49.99

"We used your AI negotiator for the $49.99 and saved at least $2,500."

They mention the price of the service they used—$49.99. The caller is saying that even after paying that, they still saved a lot on the truck deal.

Concept

negotiator finalized the numbers

"Literally once we had agreed on our out the door, the negotiator basically finalized the numbers."

They’re describing how once they agreed on the price, the remaining steps got completed so the final deal could be locked in. It’s basically about speeding up the “getting it done” part of buying a car.

Term

out the door

"Literally once we had agreed on our out the door, the negotiator basically finalized the numbers."

“Out the door” means the full final price you pay at the dealership—everything included, not just the sticker price. It’s the number you want to compare between different offers.

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