Unsold Cars are Pushing Prices Down for Shoppers

Too Many Cars, Too Few Buyers

When a car dealership has too much unsold inventory, it’s more than just a cluttered lot. It can hurt its financial health. For buyers, though, that same pressure on dealerships can open doors for serious deals, especially if you know how to read the signals. Below, we’ll explore how unsold cars are pushing prices down for shoppers, so you'll know how to score better deals.

Why Unsold Inventory is a Problem for Dealerships

Dealerships generally don’t pay for their inventory outright. Instead, most use floor-plan financing, which is a kind of short-term loan from manufacturers or finance arms that essentially funds the cars sitting on their lots. The longer a car sits unsold, the more interest a dealer pays on that loan, cutting into their profit margin.

Moreover, lots have limited space. Vehicles that overstay their welcome block room for fresher, more desirable models. Aging cars lose appeal. Today’s “new" car becomes tomorrow’s carryover model. Manufacturers also expect dealerships to meet quotas and accept manufacturer incentives or penalties tied to volume. If inventory lingers, dealers may need to make aggressive moves to avoid being penalized or sidelined in receiving future allocations.

Recent data shows the scale of the problem: in late 2024, new-vehicle inventory in the U.S. rose to over three million units, pushing “days’ supply" (how long current inventory would last at current sales pace) into the 80s, well above ideal levels. In 2025, leftover 2024 models numbered in the tens of thousands nationwide. Experts suggest buyers aim for 15–20% off MSRP on leftover units.

Given all that, dealers facing pressure from unsold stock are more willing to offer incentives, rebates, better financing and added perks just to move cars off their lots.

Brand Cases

Each brand is impacted differently by inventory glut, depending on popularity, luxury positioning and supply dynamics. Buyers who understand these brand-specific pressures can better target where discounts are likeliest.

Audi & BMW (Luxury Segment)

Luxury brands like Audi and BMW often have higher pricing flexibility, but also risk steeper depreciation when inventory lingers. In lean demand periods, these brands may increase incentives or offer lease deals to attract more buyers. Because their sales volumes are smaller, individual dealers with aging luxury units may be especially motivated to deal. That said, luxury manufacturers tend to be more careful about maintaining brand prestige, so deep discounts are less common than in mainstream segments.

Ford & GM (Mass Market, Trucks & SUVs)

These two are more exposed when inventories build, especially in high-volume segments like trucks and SUVs. For example, Ford has been reported to offer discounts as large as $17,000 off MSRP on certain unsold 2024 models in aggressive clearance efforts. Trucks like the F-150 or heavy duty GM pickups often have high sticker prices, so percentage discounts translate to big dollar savings. Dealers may also offer 0% APR financing, cash rebates or special trade-in bonuses to clear excess inventory.

Kia & Honda (More Controlled Supply)

Some brands manage inventory more tightly to avoid oversupply. Kia, for instance, is often cited for offering more discounts or APR incentives when demand softens. Honda, however, tends to be more conservative. Because certain Honda and Toyota models are so reliable that demand usually stays steady, dealers may not feel as pressured to slash prices. But when a particular trim or color lags, that’s where deals can appear.

In short, with brands like Ford and GM, you might find larger discounts in dollar terms. With Kia, you might find more common but smaller incentives. With Honda, expect fewer deep cuts, but good deals on specific variants.

How Buyers Can Leverage Oversupply to Get Better Deals

Here’s how to spot and exploit opportunities when dealerships are burdened with unsold inventory:

1. Look for Carryover and/or Last-year Models

Vehicles made for a previous model year (e.g. 2024s being sold in 2025) often take longer to move. Dealers know these lose appeal once newer models arrive. You have leverage to push harder discounts. In markets where 2024s are still on lots, discounts of 15%–20% off MSRP are quoted as reasonable targets.

2. Be Flexible on Trim, Color and Options

The more rigid your preferences, the less room the dealer has to discount. If you’re willing to accept a less popular color or fewer options, you gain negotiating power. Dealers are usually more motivated to unload the “hard to sell" variants.

3. Ask for Dealer Holdback or Floor-plan Relief

Because dealers receive holdbacks (a small percentage of MSRP that the manufacturer pays back to the dealer) and because they incur floor-plan costs, in a stressed inventory situation they might give up holdbacks or absorb some floor-plan expense to make a sale.

4. Combine Incentives, Rebates and Financing Offers

Manufacturers often layer incentives on top of dealer discounts: cash rebates, 0% or low-APR loans or deferred payment plans. Ask whether your deal includes all possible factory incentives and whether you qualify for regional or seasonal bonuses. Dealers under inventory stress may be more willing to stack incentives.

5. Shop at Quarter-end or Year-end

Dealerships feel the pressure most strongly close to month-end, quarter-end or especially year-end, because they need to meet sales quotas. That’s when they might be most flexible. Dealers may also receive “bonus payments" from manufacturers for hitting sales targets, so they’ll want to push any lingering inventory.

6. Get Multiple Quotes and Leverage Dealer Competition

The more dealers you involve in quoting, the more pressure they face to beat each other. If Dealer A knows Dealer B has the same model competing heavily, that intensifies the discounting. It’s particularly helpful when nearby markets differ in demand—traveling a bit farther may score you a far better offer.

7. Focus on Total Out-the-door Cost, Not Just Monthly Payment

Never let them hide costs in “low monthly payments" by stretching terms or increasing fees. Focus on the all-in price. Because dealers want to clear inventory, they may sacrifice margin somewhere, but you must extract it in your contract.

Risks and Caveats

Not all inventory pressure means unlimited discounts. Be aware of the following:

• Popular models or trim combinations may still be in tight supply — dealers have less wiggle room there.
• Some incentives exclude high-demand trims, colors or newly released models.
• Dealers can use “market adjustment" fees to offset discounts.
• Be careful of financing traps or add-on packages disguised as “perks."

Automakers may also respond to excess inventory by cutting production, reducing future allocations to dealers, which could tighten supply.