The average transaction price for a new car is currently around $47,000, with automakers like Nissan facing inventory challenges following pandemic-induced demand. In an effort to clear out older models and make room for incoming ones, Nissan is allowing dealers to discount their 2024 lineup by up to 10 percent below invoice. This includes the ability to discount the seven-year-old Armada by up to 15 percent. Despite solid sales in the first quarter of the year, Nissan has seen its inventory rise, prompting dealers to target discounts on slow-selling models and basic trim levels.
**Rising Inventory Woes**
Nissan’s inventory levels have been on the rise, with the company currently holding a nearly 100-day supply of new vehicles. Sales were up 8.5 percent in the first quarter of the year, but fleet sales have also surged, contributing to the rising inventory levels. The company’s sales saw a significant increase in 2023 but have not been enough to reduce inventory levels.
**Discount Strategy**
In an attempt to move more units and clear out lots, Nissan is allowing dealers to discount their 2024 lineup by up to 10 percent below invoice. This includes models like the Kicks and even the seven-year-old Armada, which can be discounted by up to 15 percent. Dealers are focusing their discounts on slow-selling models and sparsely optioned trim levels, rather than high-demand models like the GT-R or the $52,000 Pathfinder Platinum.
**Dealers’ Perspective**
Dealers have noted that there is currently not a bad deal on a Nissan, with the company eager to make deals and move inventory rapidly. The discount strategy aims to free up space for incoming 2025 models while also providing customers with incentives to make a purchase. Despite inventory challenges, Nissan remains optimistic about its sales potential and the effectiveness of its discount strategy.
**Looking Ahead**
As Nissan continues to navigate inventory challenges and market trends, the company is focused on maintaining sales momentum and moving inventory efficiently. By offering discounts on older models and slow-selling units, Nissan hopes to attract customers and create space for new models. Dealers are optimistic about the potential for increased sales and clearing out lots to make room for upcoming 2025 models. Despite current challenges, Nissan remains committed to adapting to market conditions and meeting customer demand.
**Conclusion**
In conclusion, Nissan’s inventory challenges have prompted the company to implement a discount strategy to clear out lots and make room for incoming models. By allowing dealers to discount their 2024 lineup and even offering discounts on the seven-year-old Armada, Nissan hopes to attract customers and move inventory efficiently. Despite rising inventory levels, the company remains optimistic about its sales potential and the effectiveness of its discount strategy. Dealers are eager to make deals and capitalize on the opportunity to offer discounts to customers. As Nissan continues to navigate market trends and inventory challenges, the company is focused on maintaining sales momentum and adapting to meet customer demand.