Winter Wheels

American car dealers rev up the winter sales season. This year-end, they are rolling out generous incentives and discounts to clear out older vehicle stocks and make way for the exciting new models arriving in the new year.

For over four years, year-end sales have been a tradition, with automakers typically offering minimal discounts. This strategy has helped dealers clear inventory, but this year is different. The average transaction price (ATP) for new vehicles in November 2023 dropped by 1.5% to $48,247 compared to the previous year, according to Kelley Blue Book. In 2019, the ATP for the same period was $39,203.

Inventory Overdrive

Adding to the excitement, inventory levels are currently at their highest since the early spring of 2021. Dealers and automakers are making a sprint to create space for the influx of new models set to hit the showrooms by January.

Offers

Automakers are already making their move, slashing prices and offering enticing incentives to attract more buyers to the showroom floor. In November alone, new-vehicle sales incentives skyrocketed by 136% year over year, signaling a shift from a seller's to a buyer's market, according to Cox Automotive. Average incentives are now circling around the $2,500 mark.

Brand Spotlight

Stellantis-owned Jeep takes the lead with the highest inventory at 128 days at the start of December, according to Cox Automotive. To sweeten the deal, Jeep is offering substantial discounts on the Gladiator truck and Compass crossover—$8,257 and $5,851 off their sticker prices, respectively.

More Brands, More Savings

It's not just Jeep; other brands like Kia, General Motors' Chevrolet, Mercedes, and Hyundai are also joining the festivities, offering holiday discounts on select vehicles.

From High Prices to Savings

In recent years, new vehicle prices reached all-time highs, prompting some customers to consider used options. Despite fewer units sold, automotive retailers and carmakers enjoyed hefty profits, thanks to the surge in vehicle prices.