Snagging a bargain on a new car during Memorial Day weekend has been a tough thing to do for the past few years as supply chain disruptions and low inventory kept prices elevated, but steep discounts during the summer holiday are back in 2024, according to Edmunds.
The car shopping guide issued a report this week showing domestic automakers' outgoing 2023 models have piled up on dealership lots, returning to pre-pandemic levels – and dealers are slashing prices to get rid of them.
Edmunds' data shows the share of vehicles from the outgoing model year on dealer lots is at 6.8%, up from 5.4% in May of last year and 3.7% the same month in 2022. In May of 2019, the year before COVID hit, the share of 2018 models on lots was 6.7%.
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The situation means buyers are scoring deals on outgoing model years for thousands of dollars less than in recent years. The average discount for a 2023 model year vehicle is at $4,147. Last year, the average discount for the outgoing model year was $1,919. In 2022, the average discount for a 2021 model year vehicle was only $357, and in 2019, the average discount for a 2018MY vehicle was $4,600.
So which manufacturers have the greatest buildup of inventory? Dodge tops the list with 52.6% of its dealer inventory made up of 2023 vehicles. The automaker is also cutting prices the most, with its dealers offering an average of $6,753 below MSRP on the outgoing model year.
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Chrysler, another Stellantis-owned brand, has the second-highest inventory of 2023 models at 38.4%, and its dealers are offering an average discount of $6,252 per vehicle.
Buick, owned by General Motors, is third on the list with an inventory of 17.6% and discounts of $4,256, followed by Ford at 14.7% and $3,149.
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"For dealers and automakers, the trend serves as a moment of caution surrounding the old habits of overproduction and inventory glut," said Jessica Caldwell, Edmunds’ head of insights. "It’s also a reminder that the expensive vehicles now being discounted were strong sellers one to two years ago, showing just how significant high interest rates are in today’s market."
