Jeep Dealers Are Drowning In Unsold SUVs But Still Won’t Cut You A Better Deal

Key Takeaways

• One-third of new vehicle inventory is priced below $40,000.
• Toyota has the tightest supply of any brand in the US.
• Jeep’s stock runs at double the industry days’ supply figure.
• Average new car prices are nearing $50,000.
• Jeep dealers are struggling with unsold SUVs, but still won’t offer better deals.

What’s Behind the High Average New Car Price?

The average price of a new car in America is consistently hovering around $50,000. However, this number is skewed by the growing mix of premium trucks, luxury SUVs, and high-end EVs. In reality, nearly one-quarter of all new vehicles available in June were priced between $30,000 and $40,000.

How Does Jeep’s Inventory Compare to Other Brands?

Jeep has the highest inventory levels in the industry, with a 160-day supply. This is more than double the industry average. In contrast, Toyota has the tightest supply of any brand, with a 37-day supply.

Why Aren’t Jeep Dealers Offering Better Deals?

Despite having the highest inventory levels, Jeep dealers are not offering better deals. In fact, Jeep’s incentives came in at 6.7 percent of ATP in June, under the 7 percent industry average. This means that buyers may not be able to negotiate a better price, even with the high inventory levels.

What Does This Mean for Buyers?

While the average new car price may be high, there are still many affordable options available. Buyers can find new vehicles priced below $40,000, and some brands, like Toyota, have relatively low inventory levels. However, buyers may not be able to negotiate a better price at Jeep dealerships, despite the high inventory levels.

How Does the Broader New-Car Market Look?

Despite concerns over affordability, inflation, and geopolitical uncertainty, the broader new-car market has remained remarkably steady this year. Inventories have stayed balanced, sales continue at a healthy pace, and while the average transaction price may be high, there are still many affordable options available.

Frequently Asked Questions

Q: What is the average price of a new car in America?

The average price of a new car in America is consistently hovering around $50,000. However, this number is skewed by the growing mix of premium trucks, luxury SUVs, and high-end EVs.

Q: Which brand has the highest inventory levels?

Jeep has the highest inventory levels in the industry, with a 160-day supply. This is more than double the industry average.

Q: Why aren’t Jeep dealers offering better deals?

Despite having the highest inventory levels, Jeep dealers are not offering better deals. In fact, Jeep’s incentives came in at 6.7 percent of ATP in June, under the 7 percent industry average.