NISSAN TELLS DEALERS TO SELL CARS AT A LOSS
Dealers can discount 2024 models by up to 10 percent below invoice.
The average transaction price for a new car continues to hover at around $47,000. Automakers had the upper hand in the market with pandemic-induced constraints resulting in more demand than supply, but now that’s behind us. New car inventories are rising, especially at Nissan, which has a nearly 100-day supply of new metal. The company hopes that letting its dealers sell their 2024 models at a loss will help move more units.
A memo sent to dealers and obtained by Automotive News revealed that the automaker is allowing its dealers to discount its 2024 lineup by up to 10 percent below invoice. Nissan likely wants to clear out lots to make room for incoming 2025 models, like the new Kicks. Dealers can even discount the seven-year-old, second-generation Armada up to 15 percent.
"In the past six months, we've realized that there is not a bad deal on a Nissan," a dealer soure told Automotive News. "If somebody wants to buy a car, you throw caution to the wind and just make a deal."
Nissan’s inventory woes arrive a month after the automaker announced solid sales for the first quarter. Sales were up 8.5 percent through the first three months of the year after a robust 2023, but the company has also seen its fleet sales surge. Nissan ended last year with a respectable 22.2 percent increase in sales compared to 2022, but that hasn’t been enough to reduce its inventory.
You likely won’t find a discount on heavy-hitters like the GT-R or pricier trims like the $52,000 2024 Pathfinder Platinum. Dealers told AN they’ll target the discounts on slow-selling models and sparsely optioned trim levels. Sorry supercar fans.
Nissan’s Big Plans:
Source: Automotive News
2024-05-09T17:11:30Z dg43tfdfdgfd