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Slow Transition to 2018 Model Year

November 8, 2017 0 Comments

The transition into the 2018 model year is a slow one, if October’s “historically-low” numbers are any indication.

Edmunds, an online provider of vehicle information and industry research group, has reported that 73 percent of sales in October involved vehicles from MY2017, while October 2016 had 62 percent of sales made up of MY2016 vehicles.

October sales did well overall, though, with nearly 1.4 million vehicles sold last month. However, not all manufacturers enjoyed the high numbers; specifically, Fiat-Chrysler saw its sales fall 13 percent as compared to last year.
According to Edmunds, a strong fourth quarter could help make the way for a strong 2018, hopefully before more incentives are needed to move 2017 vehicles off dealership lots. As dealers try to offload the older models and close the year on a high note, customers will likely be treated to an influx of holiday sales and incentives. Unsurprisingly, over the past few years, Black Friday sales have averaged 15 percent of total November U.S. car sales, according to Edmunds.

The research group predicts continued high incentives and “pulling up sales events” that usually roll out in December, but could help boost sales this month.

Has your dealership been enduring low MY2018 sales? Do you have a strategy to sell the rest of your MY2017 vehicles so you can focus on the 2018s?

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