Car dealers in the US are set to end 2023 by offering generous incentives and discounts during winter sales, with the aim of clearing out older vehicle inventory to capitalize on sustained demand from consumers in the new year, Reuters reported on Wednesday.
During the past four years, US automakers have offered minimal discounts to prospective customers with their year-end sales as they looked to cash in on new vehicle demand, the media outlet noted.
The initiative comes as inventory levels are currently at their highest since the early spring of 2021.
As well, the average transaction price (ATP) for new vehicles in November 2023 fell 1.5% to $48,247 from a year ago, which is still higher than the $39,203 figure for the same period in 2019, according to data from Kelley Blue Book.
"New-vehicle sales incentives were up 136% year over year in November, indicating the new-vehicle market is shifting to a buyer's market, not a seller's market," Cox Automotive wrote in a report.
Jeep, a vehicle brand owned by Stellantis, held the highest inventory at 128 days at the beginning of December, Cox Automotive added.