Negotiate Truck Prices Today; Here’s How to Navigate SUV Shortages

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Last updated May 4, 2023

Heading into this summer car buying season, patience will reward shoppers with savings. However, a closer look at market data reveals a shocking reality: deals are very hit-or-miss in 2023. Frankly, your likelihood of buying a new car under MSRP depends on what exactly you’re shopping for. On top of that, notable differences exist between regional markets. To bring much-needed clarity to the car market in 2023, we’re sharing the latest analysis from CarEdge Data. Let’s dive in.

Ford, Ram and GM Can’t Sell Their Expensive Trucks

Among the metrics employed to track the new car market, days’ supply is one of the most widely-used. Through the industry’s ups and downs from 2020 through the present, this data point was the bellwether at every turn. But what exactly is days’ supply, and how is it calculated?

Days’ supply is a calculation used in the automotive industry to determine how long it would take for dealerships to sell their current inventory of vehicles based on the average daily sales rate. It is calculated by dividing the number of vehicles in inventory by the average daily sales rate over a certain period of time.

Here’s the car buyer’s guide to auto sales jargon and terms to know.

Historically, a 60 days’ supply is considered normal or average in the auto industry. As we’re about to see, few of the top-selling models in America are anywhere near normal heading into summer.

An Abundance of Trucks, and a Shortage of Affordable SUVs

Are you in the market for a new truck in 2023? We have good news for you. There’s a huge oversupply of trucks in most markets as demand for overpriced inventory dried up earlier this year. Dealers are holding on to their trucks for too long, and with high floorplanning costs, they’re paying the price. 

Car dealer floorplanning costs refer to the interest charges that car dealerships incur when they finance their inventory with a line of credit from a bank or a finance company. Essentially, the dealership uses the line of credit to purchase new cars from the manufacturer, and then pays interest on the loan until the cars are sold to customers. The longer the cars sit on the lot unsold, the more interest the dealer has to pay. This is why it’s important for dealers to move their inventory quickly and efficiently.

Examples of Truck Negotiability

We’re seeing truck prices steadily drop in most markets. Check out these examples from CarEdge Car Search. This brand-new Ford F-150 on sale in the Dallas area has had no fewer than four price adjustments in the past few months, yet it remains on the lot after 290 days. The CarEdge Negotiability Score takes into account days on market, local supply, and other factors to give this F-150 a 97/100. The dealer is EXTREMELY likely to negotiate.

Ford F-150 prices and negotiability in 2023

This new Ram 1500 on sale near Houston, Texas has been on sale for over 285 days. The dealer has been dreading dropping the price, but seems to have finally given in recently. This is the perfect example of a new truck that would be quite negotiable.

Ram truck prices in 2023

Affordable SUVs and Sedans In Short Supply

Is it any surprise that automakers are making more of their higher margin, expensive models and far fewer of the budget models that most drivers want? The best-selling affordable vehicles all have days’ supply well under the 60 day norm in major markets. 

This includes the following best-sellers:

Let’s take a closer look at current new car inventory for the 20 best-selling cars, trucks and SUVs last year. We analyzed inventory in the five largest car markets in the United States. The following data is as-of Apr 26, 2023.

New York-Newark-Jersey City, NY-NJ-PA

Make/ModelTotal For Sale# Sold - 45 DaysDays Supply
Ford F-150 XLT Hybrid515138168
Chevrolet Silverado LT 4WD1092276178
Ram 1500 Big Horn/Lone Star1182250213
Toyota RAV4 XLE Premium54387628
Toyota Camry LE FWD50962537
GMC Sierra Elevation 4WD508133172
Honda CR-V Sport FWD36196817
Toyota Tacoma TRD Off Road 4WD49050544
Tesla Model Y Long Range (used - 2021)11023215
Jeep Grand Cherokee Limited 4WD32841236
Toyota Highlander XLE FWD1114169230
Toyota Corolla LE76782942
Chevrolet Equinox LS39018197
Ford Explorer XLT1375364170
Tesla Model 3 RWD (used - 2021)11820266
Nissan Rogue SV1481144346
Jeep Wrangler Unlimited506107213
Hyundai Tucson SEL1365138744
Subaru Crosstrek Limited30075418
Honda Accord EX79061758

Los Angeles-Long Beach-Anaheim, CA

Make/ModelTotal For Sale# Sold - 45 DaysDays Supply
Ford F-150 XLT Hybrid832267140
Chevrolet Silverado LT 4WD890253158
Ram 1500 Big Horn/Lone Star908118346
Toyota RAV4 XLE Premium1003114240
Toyota Camry LE FWD62168341
GMC Sierra Elevation 4WD38820685
Honda CR-V Sport FWD1052102846
Toyota Tacoma TRD Off Road 4WD585173715
Tesla Model Y Long Range (used - 2021)825172
Jeep Grand Cherokee Limited 4WD18210380
Toyota Highlander XLE FWD35776621
Toyota Corolla LE64295030
Chevrolet Equinox LS301122111
Ford Explorer XLT627198143
Tesla Model 3 RWD (used - 2021)637438
Nissan Rogue SV75465052
Jeep Wrangler Unlimited21710395
Hyundai Tucson SEL28441931
Subaru Crosstrek Limited81393
Honda Accord EX102051689

Chicago-Naperville-Elgin, IL-IN-WI

Make/ModelTotal For Sale# Sold - 45 DaysDays Supply
Ford F-150 XLT Hybrid479211102
Chevrolet Silverado LT 4WD546150164
Ram 1500 Big Horn/Lone Star46966320
Toyota RAV4 XLE Premium19843221
Toyota Camry LE FWD11315633
GMC Sierra Elevation 4WD16769109
Honda CR-V Sport FWD12538015
Toyota Tacoma TRD Off Road 4WD28932440
Tesla Model Y Long Range (used - 2021)292065
Jeep Grand Cherokee Limited 4WD17311965
Toyota Highlander XLE FWD30363721
Toyota Corolla LE21424140
Chevrolet Equinox LS13120329
Ford Explorer XLT572126204
Tesla Model 3 RWD (used - 2021)111729
Nissan Rogue SV48240554
Jeep Wrangler Unlimited11531167
Hyundai Tucson SEL52859840
Subaru Crosstrek Limited332296
Honda Accord EX18818546

Dallas-Fort Worth-Arlington, TX

Make/ModelTotal For Sale# Sold - 45 DaysDays Supply
Ford F-150 XLT Hybrid1269301190
Chevrolet Silverado LT 4WD918176235
Ram 1500 Big Horn/Lone Star832140267
Toyota RAV4 XLE Premium13422926
Toyota Camry LE FWD12219928
GMC Sierra Elevation 4WD29486154
Honda CR-V Sport FWD42326073
Toyota Tacoma TRD Off Road 4WD11717330
Tesla Model Y Long Range (used - 2021)191557
Jeep Grand Cherokee Limited 4WD22581125
Toyota Highlander XLE FWD20723540
Toyota Corolla LE10319124
Chevrolet Equinox LS5310223
Ford Explorer XLT616114243
Tesla Model 3 RWD (used - 2021)242054
Nissan Rogue SV67844569
Jeep Wrangler Unlimited1145495
Hyundai Tucson SEL25332036
Subaru Crosstrek Limited15799
Honda Accord EX27918867

Houston-The Woodlands-Sugar Land, TX

Make/ModelTotal For Sale# Sold - 45 DaysDays Supply
Ford F-150 XLT Hybrid1378352176
Chevrolet Silverado LT 4WD894263153
Ram 1500 Big Horn/Lone Star1021139331
Toyota RAV4 XLE Premium19222339
Toyota Camry LE FWD13915141
GMC Sierra Elevation 4WD33163236
Honda CR-V Sport FWD35232249
Toyota Tacoma TRD Off Road 4WD13921629
Tesla Model Y Long Range (used - 2021)2711110
Jeep Grand Cherokee Limited 4WD18056145
Toyota Highlander XLE FWD25025045
Toyota Corolla LE9815029
Chevrolet Equinox LS258713
Ford Explorer XLT538147165
Tesla Model 3 RWD (used - 2021)231380
Nissan Rogue SV60139968
Jeep Wrangler Unlimited484153
Hyundai Tucson SEL19436624
Subaru Crosstrek Limited5604
Honda Accord EX20118748

The trend couldn’t be more clear: there’s a massive oversupply of trucks, and a shortage of popular, more affordable crossovers, SUVs and sedans. Buyers are holding back on truck purchases, yet automakers keep producing more and more. They make less profit per affordable vehicle sold, and in these greedy times, they’re producing less and less of them. We saw it just the other day with the cancellation of the Chevrolet Bolt to make way for $80,000+ electric trucks.

Let’s talk about what you should do to overcome these obstacles when buying in 2023. With a but of insider know-how, buyers still have the upper hand.

Here’s the latest new car inventory numbers (nationwide).

Advice For Car Buyers in 2023

is now a good time to buy a car? 2023 update

Be patient.

With the latest market update in mind, CarEdge co-founder and auto industry veteran Ray Shefska wanted to share these timely recommendations with car buyers. 

“My advice for buyers can be summed up in one word, patience. With dealer floor plan costs rising and inventory levels growing, a consumer’s patience should be rewarded with lower prices either via direct discounts from the dealership or in combination with manufacturer customer incentives in the form of rebates. Depending on how we see sales play out for the month of May, lower than what they had hoped for, is my expectation. I would not be surprised to see manufacturers offer both customer rebates and subvented interest rates in May to spur slowing sales. Dealers hate aged new vehicle inventory and with trucks sitting for so long, many dealers will react the only way they know how, and that would be discounting trucks to move them.

PATIENCE is the word of the day.”

Be flexible.

To find the best deals in the current market, car buyers need to be flexible in their choices. Buyers may need to be open to different makes and models to take advantage of the best deals. For example, a buyer in the market for a new Honda CR-V may want to test drive the new Nissan Rogue or even a Ford Explorer, two models with more inventory. If you’re shopping for a model that’s in short supply, now’s probably not the time to be picky about paint color, wheels or other nonessentials.

Do your research.

To make informed buying decisions, car buyers should conduct thorough research on the models they are interested in. With CarEdge Data, buyers can access valuable information on depreciation, resale value, and more. Armed with this knowledge, buyers can negotiate better deals and avoid being taken advantage of by car dealerships. Don’t make a hasty decision – take the time to do your research and make an informed choice.

See behind-the-scenes local market data with CarEdge Car Search.

Unlock Premium Car Market Data Today

If you’re in the market for a new car in 2023, it’s more important than ever to make informed buying decisions. With CarEdge Data, you can access proven data on depreciation, resale value, and more to ensure that you get the best deal possible. Don’t let car dealerships take advantage of you – empower yourself with CarEdge Data today.

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