If you’re looking for a new car, you could score a great deal on a 2018 model. That’s according to an iSeeCars study of new cars that still have high numbers of two-year-old models on lots across the country.
While car shoppers may find that 2018 models offer some bargains, money expert Clark Howard says there’s a very good reason for that…
Study: 2018 new car models may hold the best deals
Clark says part of the reason for the surplus of older models is due to the current dealer-manufacturer incentive system. Here’s how he says it works:
“If the manufacturer is having a hard time selling a particular vehicle, they’ll go to high-volume dealers and say, ‘Hey would you take these? We’ll give you all this money.'”
He adds: “And so the dealers will take the vehicles and sometimes it will backfire on them, because they get stuck with them. And then what happens is those end up being sold [for a discount].”
The iSeeCars study, which analyzed data of two million vehicles, found that 2018 models make up only 4% of the average new car’s inventory. However, these specific models have an abundance of 2018 inventory still on the lot:
New vehicles with the highest 2018 inventory
|Rank||Vehicle||% 2018 inventory|
|1||Jeep Wrangler Unlimited||19.5%|
|4||Mitsubishi Eclipse Cross||12.5%|
iSeeCars CEO Phong Ly says that car shoppers who focus just on new model year vehicles may miss out on great car deals. “Consumers might not be aware that these cars are available and that they can present great savings opportunities.”
Clark’s take on buying a new car
Clark says just because you have your eyes set on a new car for a discounted price, it doesn’t automatically make it a good deal.
If you choose to buy a new vehicle, you’ll end up eating the cost of depreciation. That’s why Clark advises that you keep new vehicles at least 10 years.
Are you shopping for a new car, but you’re not sure where to start? Check out Team Clark’s 5 step guide to buy a new car.