Top 10 New Vehicles that Languish on Dealer Lots
Anyone who has to manage an inventory of products, no matter the type of business, has to find the perfect balance. On one hand, the customer must benefit from the widest selection, but on the other, products can’t sit around on the shelves for too long, especially if they have an expiry date. It’s also the case with the automotive industry, new vehicles in particular.
As we all know, new cars are stamped with model years, at least in America, which makes them lose value on an annual basis, whether they’re on the road or parked on dealer lots. Dealerships can’t keep these vehicles in stock too long, especially if they were purchased from the manufacturer through financing.
An interesting statistic calculated in the United States every month is the number of days in inventory of makes and models. In theory, a high number means a model stagnates and has trouble finding buyers. In these cases, substantial rebates or financial incentives will likely be offered to liquidate inventory. Sometimes, a manufacturer will interrupt production at the assembly plant in order to reduce inventory, temporarily laying off its employees. For example, a number of 100 means it will take one hundred days to sell what’s in stock.
Inversely, a low number of inventory days usually means the model sells well, at the detriment of a wide selection for the consumer. A number of 30 hints that there are just enough vehicles in inventory for a month of sales. Manufacturers that skilfully master their inventory are Subaru (26 days of inventory), Volvo (27), BMW (42), Toyota (46) and Mercedes-Benz (51). The worst are Mitsubishi (125), Fiat Chrysler Automobiles (82), Ford (73), the Volkswagen Group (72) and General Motors (71). The industry average currently is 63 days.
So here are the top 10 vehicles in the United States with the highest number of days of inventory, or the ones that are currently languishing on dealer lots. The numbers were recorded on January 1st, 2017.
10- Buick Cascada
The Cascada is a four-passenger, compact convertible imported from Europe. An interesting car with a turbocharged, 1.6-litre four-cylinder engine that develops 200 horsepower as well as a power-folding soft top. However, with an inventory of 159 days, or a little more than five months, either consumers aren’t attracted to it or General Motors messed up its sales forecasts. We better understand why GM Canada decided not to add it to Buick’s line-up in our country.
9- Mitsubishi Lancer
The Lancer’s production should end this year, after 10 years on the market with any major changes. No replacement is in sight, as Mitsubishi prefers concentrating its efforts on its SUVs. Not to worry, though, because the Lancer’s inventory in United States is good for 161 days, so they’ll be plenty available for several months.
8- Honda CR-Z
Honda’s sporty little hybrid two-seater never found its place on the North-American market, and is retiring after the 2016 model year. A bunch will nevertheless be sold during 2017, with an inventory good for 169 days, or five and a half months.
6- Acura ILX (tie)
Proportionally, the ILX is more popular in Canada than in the United States. However, the automaker has a good inventory available in Trumpland. It could stop assembling them and still have enough for 175 days’ worth of sales, or almost six months.
6- Buick LaCrosse (tie)
It was completely redesigned for the 2017 model year, and is more comfortable and quieter than ever. It’s also very attractive, adopting the brand’s new styling language. General Motors expects to sell a lot of them, since the LaCrosse’s inventory on January 1, 2017, is good for 175 days.
5- Dodge Dart
Like the Honda CR-Z, production of the compact Dart has ended after the 2016 model year, after a brief career during which the sedan never succeeded in attracting buyers away from the Honda Civic, the Toyota Corolla and the Mazda3. However, many Darts will still be sold with some enticing incentives in 2017, with a 182-day inventory left.
3- Buick Regal (tie)
This sporty Buick sedan hasn’t changed for a while now, and its sales have been slightly dropping in the past few years. General Motors has plenty of in-stock Regals though, good for 196 days, or six and a half months of sales.
3- Chrysler 200 (tie)
Another Fiat Chrysler Automobiles car that struggles to find buyers. And yet, it was a sedan destined for greatness with elegant styling, efficient powertrains and available AWD. In the United States, there’s a 196-day inventory ready for the taking. The 200 will likely retire at the end of the 2017 model year.
2- Mitsubishi Mirage
An interesting car for its ride comfort and excellent warranty, but its modest output and the U.S. market’s general disdain for small cars result in lukewarm sales for the Mirage. Mitsubishi has a good inventory of its minicar, though, good for 205 days of sales in the United States.
1- Fiat 500L
The 500L refuses to leave its dealerships by lack of interest or, arguably, because of its rather high price. FCA has an inventory for 225 days of sales, or about seven and a half months. And yet, it’s a vehicle that offers undeniable versatility. At least buyers have a wide selection to choose from and will be able to negotiate a good price.