How to Get a New SUV at a Steep Discount
SUVs are trendy nowadays and it seems like the majority of new vehicle buyers are choosing SUVs over sedans. However, the problem is that SUVs are an expensive vehicle.
Fortunately, SUVs are available across the country for much lower prices that you would normally find. Dealers are sitting on too much inventory which is forcing them to offer discounts to clear the new SUVs sitting on their lots.
If you are in the market for a new SUV, now is a great time to take advantage of the incentives and buy your dream vehicle on a sweet discount.
Dealers Have Too Many SUVs on the Lot
It’s common to see rows of sparkling new vehicles sitting on car dealership lots awaiting a willing customer. Usually, car dealers are cautious about the number of cars they keep. It becomes difficult for them to sell their inventory if they stockpile too many vehicles.
Unluckily for them but luckily for you, auto dealerships are facing this exact problem right now: there’s way too many vehicles sitting on the lot waiting to be sold. Since customers are not purchasing as many new vehicles as predicted, new vehicle are starting to pile up and dealers are stuck with too much inventory.
The obvious problem is the slow rate of sales. The price of the latest SUVs keeps increasing each year. According to The Drive, the average price of a full-size SUV was $60,437 last year. Today, the same SUV vehicle costs around $62,437. Buyers just don’t seem motivated to pay those high prices. According to The Wheel, auto sales totaled 17.55 million three years ago, but this year they predict a dip to below 17 million.
As sales are decreasing, dealerships have to work harder to sell SUVs. Interestingly, car-makers are still creating new models and sending more of the latest SUVs to dealerships each year. This causes the dealerships to end up with more cars than they are able to sell. Experts estimate around 4 million unsold vehicles are sitting in the showrooms.
If dealerships are unable to move this excess inventory of unsold SUVs it will have a negative impact on their bottom line.
More SUV Leases Are Ending
In addition to the problem of excess vehicles that dealerships are unable to sell, there’s an additional problem: there’s an influx of like-new SUVs coming off their leases.
Leasing became popular among SUV fans a few years ago as low monthly payments enabled buyers to afford a brand new SUV at a reasonable price for the duration of their lease.
But now those leased SUVs are coming off their leases and being returned to dealerships across the USA.
2019 was the first year that witnessed the influx of SUVs coming off lease. The trend is expected to continue for a few years, according to Detroit Free Press.
The ‘home-coming’ of these off-lease SUVs is like the arrival of new models at dealerships. Many are in excellent condition, with low mileage and jam packed with modern and high-tech features. The influx of these off lease vehicles will only cause dealerships to offer more incentives and promotions.
Besides selling brand-new SUVs, dealerships now have to sell these off-lease models too. This situation adds to their costs. According to the industry newsletters, holding a big inventory costs car dealers more money in interest and storage costs. This is what makes dealers want to clear any inventory that isn’t selling fast.
What Does This Mean for Anyone Finding a New SUV?
Dealerships across the US are desperate to increase sales to gain some profit and also to get rid of the extra inventory. So, this is an ideal opportunity for anyone in the market for a new SUV.
Experts believe this increased pressure and surplus of inventory will contribute to decreasing SUV prices. Industry observers anticipate deals offered by dealerships to increase, and for unbelievable prices to be found on off-lease, late-model SUVs.
Now buyers will have even more choices of discounted SUVs. In other words, it means auto companies and dealerships will compete with each other to give you a better offer. This will lead dealerships to lower prices, offer huge incentives and provide enticing discounts in order to make sales.
Huge discounts and incentives are already available. General Motors is staging month-long promotions to give major discounts, and Nissan is giving buyers over $5000 in cash back incentives on specific models.
In the long run, theses offers and discounts won’t be going away so long as there are unsold SUVs sitting on the lot. It’s always best to compare prices and incentives as dealerships and automakers are competing with each other to attract you.
You should compare the offers and make sure to find who is giving you the biggest savings on your new SUV.