Expect Big Discounts on 2023 Model Year Vehicles this Memorial Day Weekend
The automotive market has undergone seismic shifts since early 2019, with vehicle prices reaching unprecedented heights due to a combination of supply chain disruptions and increased demand. However, as the dust begins to settle, a new narrative is emerging for consumers: the prospect of significant discounts on 2023 model-year cars.
Data analysis reveals that dealerships are currently holding onto a larger inventory of 2023 model-year vehicles than usual, reminiscent of pre-pandemic levels. Back in May of 2019, about 6.7% of vehicles on lots were from the outgoing model year. This number saw a sharp decline in the following years, hitting a low of 3.7% in 2022 due to supply chain issues that throttled production. Fast forward to today, and the figure has finally rebounded, with 6.8% of inventory now composed of 2023 models.
This surplus in inventory is anticipated to lead to significant discounts, especially ahead of this Memorial Day weekend. Research suggests that dealers are offering an average discount of $4,147 off the MSRP for 2023 models—more than double last year’s average discount for 2022 models. This is a silver lining for consumers navigating what has been a challenging market, offering a unique opportunity to get more value on a new vehicle purchase.
An analysis by Edmunds, a leading automotive information site, sheds light on the situation further. The automotive market, particularly over the last few years, has been anything but predictable. With limited inventory, buyers had little to look forward to in terms of discounts. However, the current trend indicates a shift, potentially signaling a return to more traditional sales practices.
Edmunds’ research also pinpoints specific brands where consumers may find above-average deals. Notably, Dodge, Chrysler, and Jeep are offering substantial discounts, often exceeding $6,000 off MSRP. Volkswagen, Volvo, and Infiniti are not far behind, with discounts averaging over $5,000. This suggests that many dealers are eager to clear out their 2023 inventory to make room for the next model year, leading to potentially great deals for shoppers.
It’s worth noting that it’s not just 2023 models that will be on sale. Edmunds reports that even some 2024 models are being offered at an average discount of $1,741. This indicates a broader trend of competitive pricing and is a call to action for consumers ready to purchase a new vehicle.
The current surplus and resulting discounts can be seen as a pivot from automakers’ previous statements during the pandemic, where many vowed to cut back on production to avoid surplus inventory. Despite these claims, it appears that some brands have reverted to previous practices, to the benefit of consumers in the market for a new car.
For potential buyers, this situation represents a golden opportunity to leverage the surplus of 2023 model-year vehicles towards securing significant savings. Shoppers are encouraged to research, compare, and negotiate to find the best deals possible this holiday weekend, keeping in mind their budget and not being afraid to haggle.
In summary, while the landscape of the automotive market has changed dramatically over the past few years, the current overflow of 2023 model-year vehicles suggests that this Memorial Day weekend may be an ideal time for consumers to purchase a new car at a significant discount. With a little patience and negotiation, buyers could drive away with a deal that would have been unthinkable just a year ago.
