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Wait For Year-End Discounts on These 5 Ford Models
Through the ups and downs of the auto market, one thing remains constant and crucial for car buyers to know: the best time to buy is the end of the year. As 2023’s year end car sales and special offers are just around the corner, patience will reward Ford buyers with huge discounts. Here’s a look at why Ford’s end-of-year sales are on track to be big, and which Ford models are set to receive the largest discounts.
Something Has to Give: Ford Sales Slow As Inventory Builds
How could we possibly forecast massive Ford discounts a few months out? It’s as simple as this: Ford has too many new cars sitting on dealership lots, and it’s getting worse. Car dealers can’t let inventory sit for too long due to ‘floorplanning costs’. They finance the lot inventory they hold, and with high interest rates, they’ll eventually be losing money if they hold on to a vehicle for too long.
Ford’s inventory problem is growing worse. Auto industry measures inventory by ‘market day supply’. Market day supply (MDS) in the auto industry represents the number of days it would take to sell current vehicle inventory at the existing sales rate. Let’s take a look at the numbers:
July 4 – 86 days (313,689 cars)
August 15 – 96 days (318,339 cars)
September 29 – 112 days (373,059 cars)
Where is Ford inventory headed from here? The UAW strikes are the wild card, but other than that, there’s not much pointing towards quicker sales and a trend towards normal inventory without the introduction of big sales and special offers.
If you don’t think 112 days worth of unsold inventory is bad, here’s how Ford’s top competition stands today in terms of market day supply of new cars:
Honda – 35
Kia – 38
Toyota – 41
Chevrolet – 66
Hyundai – 68
Volkswagen – 81
Nissan – 84
Jeep – 176
Ram – 279
Yes, Jeep and Ram have far worse oversupply woes today, but that’s no excuse for Ford executives who will soon be deciding how far they’re willing to go with year-end sales in the months ahead.
Next, we’ll look at the five Ford models with the highest negotiability.
Ford’s Most Negotiable Models (Highest Inventory)
When you take a look at the Ford models with the highest inventory, some surprises may be in store:
F-150 Lightning – 256 days (7,749 for sale)
Mustang Mach-E – 191 days (23,256 for sale)
Explorer – 170 days (41,974 for sale)
Mustang – 150 days (11,291 for sale)
Edge – 149 days (27,245 for sale)
Market day supply of Ford’s top-selling model, the F-150, sits at 120 days with 101,256 for sale nationwide.
Conversely, the Maverick, Ranger, and Bronco all have current supplies below 60 days. These are the only Ford models that will be difficult to negotiate right now, but even with these, it’s not impossible (especially with the help of a Car Buying Coach).
These are the current deals for these models right now, and why for most of them, patience is key for a better deal.
F-150 Lightning Current Offers
Financing: 2.9% APR for 48 months + $500 cash
3.9% APR for 60 months + $500 cash
1.9% APR for 36 months + $500 cash
Lease offers: Lease a F-150 Lightning XLT for $600/month with $6,251 due.
See Ford offers for your ZIP code.
Why you should wait: It’s worth repeating the wildest statistic in all of this Ford update. There’s a 256-day supply of F-150 Lightnings! It’s near the top of EV inventory among all OEMs, and you think this is as good as Ford incentives will get? Think again. As we approach the end of 2023, Ford is all but guaranteed to introduce greater cash incentives, and maybe even 0.0% or 0.9% APR for the Lightning. With a truck this expensive (the average selling price of the F-150 Lightning is $80,500), APR offers carry more weight.
Browse Ford F-150 Lightning listings with local market data.
Mustang Mach-E Current Offers
Financing: 0% APR for 36-60 month loans; 1.9% APR for 72 months. This offer applies to all trim options.
Leasing: As low as $451/month for 36 months with $4,894 due.
See active Ford offers for your ZIP code.
0% financing is a great deal right now. The average new car APR is north of 7% right now, so anything under 3% is great. But zero percent? Even better. If you can secure this offer with NO dealer markups, we say go for it.
Year-end sales are likely to introduce bigger cash incentives with continued 0% APR financing, at least until Mustang Mach-E inventory drops below 100 days of supply. We’re not sure when that will happen, but one thing’s for sure: we’re a long way from it.
Browse Ford Mustang Mach-E listings with local market data.
Explorer Current Offers
Financing: 2.9% APR for 60 months + $1,000 cash offer. Those purchasing after the end of a Ford lease are eligible for $2,000 in additional ‘renewal cash’. Before 10/2/2023, an extra $1,000 in cash incentive is available, for a grand total of up to $4,000 off.
Leasing: As low as $439/month for 36 months with $4,969 due at signing.
See active Ford offers for your ZIP code.
Why you should wait: Ford seriously needs to sell some Explorers. With a 170-day supply and 2024 models arriving soon, even better incentives are just around the corner. Be on the lookout for 0% APR financing for a limited time, likely sometime later this fall.
Browse Ford Explorer listings with local market data.
Mustang Current Offers
Financing: Ford is not advertising any current APR offers for the Mustang. Contact your local dealer for more information.
Leasing: As low as $459/month for 36 months with $3,509 due
See active Ford offers for your ZIP code.
Why you should wait: There are no active Mustang finance offers as of late September, but that won’t be the case if Mustang inventory remains high come November and December. We recommend waiting until APR offers return to visit the dealership. Alternatively, you can always check your local credit union or community bank for competitive rates.
Browse Ford Mustang listings with local market data.
Ford Edge Current Offers
Finance offers: Ford is not advertising any current APR offers for the Edge. Contact your local dealer for more information.
Leasing: As low as $389/month for 36 months with $4,339 due at signing.
See active Ford offers for your ZIP code.
Just as with the Mustang, better special offers will be available as year-end sales approach. If you’re in the market for an Edge, it will likely be worth the wait if you can hold out until November or December.
Browse Ford Edge listings with local market data.
Ford’s Year-End Sales Will Be Worth the Wait
With the close of 2023 approaching, prospective Ford buyers have something to look forward to: significant year-end discounts on various models, making the wait worthwhile. Ford’s year-end sales are poised to offer considerable savings, a welcomed relief given the current state of the auto market. This anticipation is not unfounded as there is a growing inventory of new Ford vehicles piling up on dealership lots, signaling inevitable price cuts to clear the backlog.
High interest rates are compelling dealers to quickly turn over their financed inventory to avoid accruing floorplanning costs. As Ford’s market day supply (MDS) – the industry metric for gauging inventory – shows an upward trajectory from 86 days in July to a staggering 112 days in late September, it’s clear that dealerships will soon be compelled to offer enticing discounts.
When compared to the MDS of competitors, Ford’s situation becomes even more apparent. Big discounts are all but guaranteed in the months ahead.
Car Buying Help Has Arrived!
Gone are the days of navigating car buying alone and unprepared. Our team at CarEdge has helped thousands of car buyers negotiate great deals, and we’re excited to help you buy a car that you’re proud of. Learn more about CarEdge Coach, Consults and DIY Data products that give you the knowledge and know-how to negotiate like a pro.
Knowledge is power, and with CarEdge’s insights, you’ll be equipped to seize the best deals as soon as they roll out.
Kia Inventory and Deals: Here’s Your Best Chance At Negotiating
Right now, there’s just a 38-day supply of new Kia vehicles in the U.S. What this means is, at the current sales pace, all 68,541 new Kia cars and SUVs would be sold in just over a month without new inventory. But how does this compare to other car brands? And more importantly, which Kia models give you the most room for negotiation, and which ones too hot to handle? Let’s dive into the details.
The Big Picture: Kia’s Competition
The average selling price of a new Kia car today is $33,340. This statistic is striking, especially as Kia introduces more models priced over $50,000 and discontinues its most affordable one. As of today, Kia’s brand remains synonymous with affordability, but that could be changing soon. Kia is up against stiff competition as buyers flock to the only remaining affordable cars on the market.
How does Kia compare to the competition? Let’s take a look at the latest new car inventory by brand:
| Make | Market Day Supply (October) | Change vs Last Month |
|---|---|---|
| Kia | 37 | +9 |
| Honda | 34 | +6 |
| Toyota | 40 | +10 |
| Hyundai | 68 | +18 |
| Chevrolet | 66 | +12 |
| Nissan | 83 | +12 |
| Volkswagen | 80 | +17 |
| Ford | 112 | +23 |
| Jeep | 176 | +30 |
Kia is near the bottom of the pack when it comes to new car inventory right now. Only Honda has fewer cars on the lot or in transit. This is similar to last month, despite all brands increasing their inventory as daily sales rates slow and new 2024 models arrive on lots.
The most surprising number here is Hyundai’s latest inventory. For the first time in many months, Hyundai has higher-than-average inventory. With 68 days of supply at current selling rates, Hyundai has almost double the inventory of its sibling Kia. Hyundai Motor Company owns half of Kia.
American automakers can’t seem to sell cars right now. Chevrolet is close to average with a 66-day supply, but Ford and Jeep are swamped with cars they can’t sell. Ford’s inventory woes could be related to the recent announcement that they’re pausing construction on their $3.5 billion EV factory.
From Ford to Chevrolet, Jeep to Ram, dealers are stubbornly keeping listing prices higher than one would expect considering the oversupply of new cars.
The Most Negotiable Kia Models
If your goal is to save thousands of dollars on your new Kia, it’s important to look a bit closer at the details. For that, we need to look at today’s inventory numbers across the Kia model lineup.
Using the tools available through CarEdge Data, we analyzed Kia inventory for every model on sale in America. These numbers reflect nationwide supply. You can check out local Kia inventory using CarEdge Data.
| Make | Model | Market Day Supply | Total For Sale | Average Transaction Price |
|---|---|---|---|---|
| Kia | Forte | 29 | 8,150 | $23,687 |
| Kia | Carnival | 30 | 4,024 | $42,620 |
| Kia | Rio | 31 | 1,879 | $19,433 |
| Kia | Telluride | 31 | 8,208 | $49,430 |
| Kia | Stinger | 33 | 188 | $47,998 |
| Kia | Soul | 34 | 3,941 | $23,869 |
| Kia | Sportage | 36 | 11,172 | $34,460 |
| Kia | Seltos | 40 | 5,067 | $27,953 |
| Kia | Sorento | 54 | 11,811 | $41,001 |
| Kia | Niro | 56 | 4,575 | $35,378 |
| Kia | EV6 | 83 | 4,104 | $53,668 |
| Kia | Brand Average | 37 | 68,141 | $33,430 |
The most negotiable Kia models are the ones with the highest market day supply right now. This month, the all-electric Kia EV6 tops the list by a long shot. There’s an 83-day supply of new EV6’s, and that’s actually an improvement from last month. In July, EV6 inventory peaked at a mind-boggling 146 days of supply, but has been drifting downward ever since.
The EV6 was a hot seller in 2022, but the model lost eligibility for the federal EV tax credit due to the Made-in-America requirement.
Other more negotiable Kia models are the Niro (56 days of supply), and the Sorento (54 days of supply). The Niro is simply a bit too compact for most of today’s SUV buyers, so that’s likely to blame for slower (but not terrible) sales.
When it comes to the Sorento, it is clear that it’s a slow seller for what most would argue is a justified reason. The Sorento has by far the worst reliability ratings of any new Kia model. The Sorento scored a 5 on Consumer Reports’ reliability ratings. Yes, that’s on a 100-point scale.
The good news is that every other Kia model they’ve tested scored MUCH better.
Here’s the complete breakdown of Kia’s most recent reliability scores by model.
The Least Negotiable Kia Models
In late 2023, the Kia Forte, Carnival, Rio, and Telluride are the least negotiable new Kia models. The Kia Rio’s presence among the least negotiable Kia’s is interesting to say the least. The Rio is getting discontinued in the United States after 2023. This is despite the Rio being a popular and very affordable compact car. The Rio is one of the last new cars with a base MSRP starting under $20,000.
Automakers are sticking to their very unfortunate and anti-consumer plan of getting rid of affordable base models. Through August, Kia has sold 19,100 Rio’s in America this year. The EV6 can’t beat that, and the Niro and Carnival are not too far ahead. Why, then, is Kia discontinuing the Rio? Simply put, Kia doesn’t make enough profit from each Rio they sell. Budget-conscious car buyers love the Rio, but that doesn’t seem to matter to the big OEMs who want to force every driver into a $40,000+ car.
Soon, there will be even more demand for the Kia Forte, which is about to earn the title of ‘Most Affordable Kia Car’ with the passing of the Rio. The Forte is a hot seller, with just 29 days of supply. We expect the Forte’s market day supply to drop further as the last of the Rio’s are sold, forcing budget buyers to consider the slightly larger size and price tag of the Forte.
The Carnival and Telluride are in high demand right now, with about a one-month supply of each. These Kia’s aren’t cheap, and if it weren’t for the EV6 and upcoming EV6 electric SUVs, they would represent the top-of-the-line for the brand.
In order to successfully negotiate any of these models, be sure to work with a pro-consumer, honest Kia dealership. Browse local Kia listings with the power of market data with CarEdge.
The Best Kia Special Offers Today
Despite tight inventory, Kia is still advertising special offers this month. These are the best Kia deals worth your consideration in today’s market of high interest rates.
Kia EV6 and Niro EV
0.9% APR for 48 months
Up to $5,000 cash back
Note: The EV6 does not qualify for federal EV incentives, but may qualify for state and local incentives. The Niro EV charges painfully slow, and is not much cheaper, so we can only recommend the EV6.
See Kia EV6 listings with local market data.
Kia Soul, Forte, Stinger
2.9% APR for 48 months
See Soul, Forte and Stinger listings near you with local market data.
Kia also has a number of lease deals advertised. Check your local lease offers at Kia.com.
Kia Cars and SUVs Are Still Negotiable
Despite the slim pickings with some Kia models, it’s still possible to negotiate a deal to be proud of. There’s no reason you should have to pay for dealer markups, forced add-ons, or overpriced warranties. If a dealer is attempting to force any of these B.S. charges and fees onto your deal, walk away, or work with a professional Car Buying Coach.
Ready to negotiate like a pro? Try CarEdge Coach and CarEdge Data today! With these tools at your disposal, you can take control of your car buying experience, understand market dynamics, strategize effectively, and secure the best deal possible. We’re simply here to help!
In the meantime, here are our reader favorites (100% FREE):
Are Kia’s New Cars and SUVs Reliable? Here’s How Kia Compares to the Competition
Once a brand synonymous with budget-friendly options, Kia has been striving to shed its old image and emerge as a reputable name in the automobile industry. But how do Kia’s latest cars and SUVs fare in terms of dependability? How reliable are Kia cars and SUVs today? If you’re thinking about purchasing a Kia, we’ve got data you’ll want to see.
Kia Reliability Rankings
Kia’s dedication to quality has not gone unnoticed. In 2024, Kia proudly stands within the top 10 of the most reliable car brands, as ranked by Consumer Reports. Let’s see how Kia’s reliability score measures up against its competitors:
Lexus – 79
Toyota – 72
MINI – 71
Acura – 70
Honda – 70
Subaru – 69
Mazda – 67
Porsche – 66
BMW – 64
Kia – 61 (Down one spot from the previous year, but with a higher score)
This list of the top 10 most reliable brands has gone through quite the shuffle in recent years. Brands like BMW and Kia have entered the top 10, while others like Lincoln and Audi were kicked off.
So, is Kia a reliable brand in 2024? Considering the latest rankings and reviews from Consumer Reports, the answer is a resounding yes.
How does Consumer Reports determine their reliability rankings? Here’s how they explain their methodology:
“Every year, CR asks its members about problems they’ve had with their vehicles in the previous 12 months. This year, we gathered data on over 300,000 vehicles, from the 2000 to 2024 model years (with a few early-introduced 2024model years), that address 17 trouble areas, including engine, transmission, in-car electronics, and more. We use that information to give reliability ratings for every major mainstream model.”
There you have it. This robust methodology is why consumers put so much trust in the Consumer Reports rankings and reviews. This makes it even more noteworthy that Kia has joined the top 10 most reliable car brands.
Next, we’ll take a look at the most reliable Kia models.
The Most Reliable Kia Models
Consumer Reports tested nine Kia models, and there was a wide range of reliability scores among them. From the terribly rated Sorento to the superb Sportage and Carnival, it’s clear that Kia still has some work to do to bring the entire model lineup into the top rankings.
The most reliable Kia models include the Sportage, Carnival and Forte. The K5 and popular Telluride are not far behind.
Here’s how the nine Kia models CR tested were most recently rated:
The Reliability of Kia’s Best Sellers
The Sportage PHEV, Carnival and Forte may be the most reliable Kia models, but how do the top sellers fare? Here are the reliability rankings of the best-selling models. A few of the most reliable models are also the most popular!
Kia Sportage
Base Price: $26,290
Top Spec Price: $43,190
MPG: City 17 / Hwy 34 / Combined 25 miles per gallon
Consumer Reports Reliability Score: 60
You’ve probably noticed the redesigned Sportage’s spaceship-like front fascia over the past year. Most drivers would agree that it looks good, and is a pleasure to own. Consumer Reports says that The hybrid Sportage is the one to go for because it is “quicker, quieter, and gets 36 mpg overall.” Sounds like a winner for this price point.
When it comes to reliability, the Sportage ranks slightly above average for the brand with an overall score of 60.
Browse Kia Sportage listings with local market data.
Kia Forte
Base Price: $19,690
Top Spec Price: $25,090
MPG: City 31 / Hwy 41 / Combined 35 miles per gallon
Consumer Reports Reliability Score: 44
In 2023, there are just a handful of new cars priced under $20,000. The Kia Forte still makes the list, just barely. This compact car has some redeeming features, such as impressive fuel economy. However, it has a stiff suspension that is noticeable on any road surface, and a loud cabin with lots of road noise. At this price, it’s still not bad for getting around town.
Browse Kia Forte listings with local market data.
Kia Telluride
Base Price: $35,890
Top Spec Price: $52,985
MPG: City 14 / Hwy 30 / Combined 21 miles per gallon
Consumer Reports Reliability Score: 59
In just a few years, the Kia Telluride has gone from a market newcomer to one of the top selling SUVs out there. There’s no doubt about it: the Telluride offers amazing value for the price. With seating for up to 8 passengers and a well-equipped 291-hp, 3.8-liter V6 engine, there’s a lot to love. Regarding the Kia Telluride’s reliability, it scored just above average in Consumer Report’s testing and member surveys.
Browse Kia Telluride listings with local market data.
Kia Maintenance Costs
According to our CarEdge Maintenance Cost Rankings, Kia ranks #7 in the least expensive brands to maintain after 5 years. That’s in the top quarter of the 42 car brands sold in the U.S.
On average, the 5-year cost to maintain a Kia is $2,167. That’s $500 more than Toyota, about $100 more than Honda, and nearly $100 less than Kia’s sibling Hyundai.
KIA models average around $8,442 for maintenance and repair costs during their first 10 years of service. That’s because more frequent and costly maintenance is typically required between 5 and 10 years of operation. This is more than the industry average for popular brands by $1,628.
There is also a 19.92% chance that a KIA will require a major repair during that time. This is 0.58% better when compared to the other auto manufacturers in this segment that we have studied.
See the complete breakdown of Kia’s cost of ownership expenses and Kia maintenance costs.
Conclusion: Are Kia’s New Cars Reliable?
Kia’s transformation from a budget-friendly brand to a name that resonates with reliability is commendable. With continual improvements and a keen eye on quality, Kia is steadily carving a niche for itself in the automobile industry. As you contemplate your next vehicle purchase, Kia certainly deserves consideration.
Rising Toyota Inventory Ushers in Attractive APRs and Lease Deals
Nationwide, Toyota has 39 days of inventory. It’s true that Toyota models are some of the fastest selling cars on the market today, but this is actually an improvement. One month ago, Toyota was stuck with just a 30-day supply of new cars. More inventory means more negotiability, and Toyota has introduced some pretty tempting finance and lease deals. Let’s take a look at Toyota’s inventory this month, and the best Toyota special offers right now.
Toyota Inventory Is Rising
New inventory for 2023 and 2024 Toyota models is increasing after a rough summer for the much-loved automaker. The following Toyota models all have higher inventory levels today than they did one month ago:
Toyota’s rising inventory is good news for car buyers, but the brand continues to have a tighter inventory than most automakers in America. Here are the five OEMs with the lowest new car inventory today. Car market inventory is commonly measured with market day supply. Market Day Supply (MDS) represents the number of days it would take to sell the current inventory at the present sales rate, assuming no new inventory is added.
You guessed it! Toyota is on the list:
| Brand | Inventory Days Supply |
|---|---|
| Honda | 34 |
| Kia | 37 |
| Toyota | 39 |
| Lexus | 56 |
| Subaru | 63 |
| Market Average | 74 |
As we approach the end of the year, Toyota is clearly more eager to sell vehicles as 2024 model year vehicles arrive on dealer lots. Rising inventory only adds to the urgency for Toyota dealers.
The Best Toyota Deals Today
Right now, Toyota is offering competitive APRs in this high-interest auto finance market. These are Toyota’s special offers this month.
2023 Toyota Camry
3.99% APR for 48 months
Offer applies to all trims, but excludes Camry Hybrids. The Camry Hybrid offer is currently 4.99% APR for 48 months. See details and regional offers at Toyota.com.
Browse Camry listings with local market data.
2023 Toyota RAV4
3.99% APR for 48 months
Offer applies to all trims, but excludes RAV4 Hybrids. The RAV4 Hybrid offer is currently 4.99% APR for 48 months. There are no offers advertised for the RAV4 Prime. See details and regional offers at Toyota.com.
Browse RAV4 listings with local market data.
2023 Toyota Tacoma
2.99% APR for 60 months
Offer applies only to 4×2 models, and applies to 13 trim options. Be sure to check the details at Toyota.com.
Browse Tacoma listings with local market data.
2023 Toyota Corolla
3.99% APR for 48 months
This offer applies to all trims, but excludes the Corolla Cross and hybrid models. See details at Toyota.com.
Browse Corolla listings with local market data.
Here’s the Toyota finance and lease offer for every new Toyota model today. We’ve also included the latest nationwide inventory numbers.
| Model | Days Supply (September) | Finance Offer | Lease Offer |
|---|---|---|---|
| 4Runner | 60 | No advertised offers | $615 for 36 months with $3,265 due |
| bZ4X | 99 | 1.99% APR for 48 months | No advertised offers |
| Camry | 43 | 3.99% APR for 48 months | $388 for 36 months with $3,028 due |
| Corolla | 21 | 3.99% APR for 48 months | $407 for 36 months with $407 due |
| Corolla Cross | 34 | No advertised offers | $369 for 36 months with $3,019 due |
| Corolla Hatchback | 50 | 3.99% APR for 48 months | No advertised offers |
| Crown | 76 | No advertised offers | $543 for 36 months with $4,053 due |
| GR Supra | 62 | No advertised offers | $803 for 36 months with $803 due |
| GR86 | 40 | No advertised offers | $418 for 36 months with $3,038 due |
| Grand Highlander | 26 | No advertised offers | $631 for 36 months with $3,281 due |
| Highlander | 44 | 3.49% APR for 60 months | No advertised offers |
| Prius | 25 | No advertised offers | $368 for 36 months with $3,038 due |
| RAV4 | 34 | 3.99% APR for 48 months | $413 for 36 months with $3,028 due |
| Sequoia | 33 | No advertised offers | $915 for 36 months with $915 due |
| Sienna | 28 | No advertised offers | No advertised offers |
| Tacoma | 44 | 2.99% APR for 60 months | $433 for 36 months with $3,083 due |
| Tundra | 51 | No advertised offers | $641 for 36 months with $641 due |
| Venza | 56 | No advertised offers | $455 for 36 months with $3,055 due |
| Brand Total | 39 |
For local Toyota inventory data and deals (new or used), learn more about CarEdge Data.
Examples of Successful Negotiating
Our Car Coaches have successfully negotiated Toyota prices dozens of times in the past month. Here are a few examples of what’s possible with negotiation prowess.
- This driver bought the sought-after RAV4 Prime at MSRP, which is very tough to do, but certainly possible!
- This driver successfully bought the popular Corolla Hatchback without markups, and no add-ons he didn’t want.
- Think the Tacoma TRD is too hot for good deals? Think again! This driver bought a Tacoma TRD at MSRP when all other dealers were forcing markups.
The CarEdge Team is ready to help you negotiate a great deal on your next Toyota. Connect with a Coach today!
Ford Is Under Investigation By the NHTSA For Mishandling Recalls
In recent years, automotive recalls have become almost commonplace. Yet, when an automotive giant like Ford faces not one, but two investigations by the National Highway Traffic Safety Administration (NHTSA) into the adequacy of their recall remedies, it warrants concern. Here’s the latest on Ford’s recall investigation, and how you can check if your car is impacted.
Ford Focus Recall Under Scrutiny
Back in October 2018, Ford issued a massive recall for over 1.2 million 2012-18 Ford Focus sedans. The prescribed solution was for dealers to reprogram the powertrain control module and, where necessary, replace the canister purge valve.
However, a second recall was initiated in July 2019. This covered approximately 57,000 2012-14 and 2017 Focus sedans, which, although included in the 2018 recall, did not get the intended powertrain control module update.
Now, the NHTSA is probing whether Ford’s recall solutions effectively addressed the underlying problem. Auto News reports that they’ve received 98 complaints from consumers regarding failure of the canister purge valve in the 2012-18 Focus models. Some of these vehicles had already undergone the recall remedy, whereas others had never been recalled but displayed the same defect. This has raised suspicions that Ford isn’t adequately addressing recalls. Whether this has been due to Ford’s internal policy or mere accident is up for debate.
A New Ford Recall Impacts the EcoSport
A separate investigation is now looking into the 2018-21 Ford EcoSport vehicles. This came in the wake of 95 consumer complaints about engine failures due to a sudden loss of oil pressure. In a particularly concerning report, a vehicle owner stated the oil light came on even when the oil was full, leading to engine malfunction. This isn’t a cheap fix, either. The severity of the issue is such that it often requires a complete engine replacement.
Ford Leads in Recalls and Investigations
In response to the unfolding events, Ford spokesperson Maria Buczkowski assured that Ford is actively cooperating with the NHTSA’s inquiries.
Recalls, although common, are usually decisive and efficient solutions to potential safety risks. What makes this situation exceptional is the frequency of Ford’s recalls. Not only has Ford topped the recall charts for the past three years, but 2023 alone has seen the company issue 44 recalls, affecting a staggering 4.6 million vehicles.
Is Ford’s recall a big deal? This is not the first, but the second time that Ford has faced an official NHTSA recall investigation this year. Automotive News reports that in August, the NHTSA announced that it was looking into Ford’s handling of a recall for 2022 Ford Mustang Mach-E electric SUVs. The 2022 recall was meant to address sudden power loss in 50,000 Mustang Mach E’s.
These five automakers have the most recalls in 2023:
- Ford (44 recalls)
- Chrysler (34 recalls)
- BMW (22 recalls)
- Mercedes-Benz (18 recalls)
- Nissan (18 recalls)
According to new NHTSA stats, Ford issued 67 recalls in 2022. In 2022, Volkswagen had the second highest number of recalls, followed by Daimler Trucks North America and Chrysler.
CEO: Quality Control Fixes to Take Years
With recalls being a pressing issue, one has to wonder about the root cause. Ford’s CEO, Jim Farley, has not shied away from acknowledging the elephant in the room. He’s openly admitted to quality control being a significant concern and has promised to prioritize fixing these issues. Farley has been quoted saying, “Fixing quality is my No. 1 priority,” but also cautioned that resolution will be a gradual process, spanning several years.
Perhaps having not one but two open NHTSA investigations will hasten the pace of Ford’s long-term solution for the quality control that plague the company.
Auto Loan Rates Hit 10%, Used Cars Even Higher
The average auto loan rate has reached highs not seen in 40 years. New and used car loans are becoming more expensive, and that’s not likely to change anytime soon. We’ll delve into the latest data from Cox Automotive to better understand the true cost of buying a car today, revealing some notable trends along the way.
Buying soon? Take this auto finance cheat sheet with you.
New Car Interest Rates Average 10%
The latest numbers from Cox Automotive show just how expensive car loans have become. The average new car interest rate is now 9.95%. One year ago, this figure stood at 7%. Step back to 2021, and the average new car loan APR was around 5%.
In early 2024, new car loans with 0% APR constitute a mere 2.4% of the market, a major drop from one year prior. Low APR car loans, those with an APR under 3%, now represent 10.4% of the market. This marks a slight increase as holiday year-end car sales continue. However, low interest rate loans previously accounted for over 35% of new car loans in early 2022.
Here’s How Much Interest Buyers Are Paying
Knowing that the average transaction price of a new car sold last month was $48,451, we can calculate how much interest car buyers are signing up for when they make a purchase. This is a GREAT way to wrap your head around the TRUE cost of a car loan.
We always recommend putting 20% down when buying a car. This helps you avoid the risk of becoming ‘upside down’ on your loan, and means you’ll pay less in total interest. Let’s say today’s average buyer puts 20% down, and takes out a loan for the remaining balance ($38,761) at today’s average APR of 9.95%.
With a 60-month car loan, the average car buyer would pay a total of $10,595 in interest. In other words, the new car wouldn’t cost $48,451. After five years of payments, the car actually costs $59,046.
Used Car Rates Soar Towards 14% APR
Pre-owned vehicles may have lower sticker prices, but the cost of financing one is much higher. In October, the average used car APR was 13.94%. That’s significantly higher than where rates stood a few years ago, when 9% APR was the norm.
Used car prices are still high. Each year, Cox Automotive tracks the annual decline in three-year-old used car values. You’d expect a 2020 model year used car to end 2023 worth a lot less than it began the year, right? Used car values have been declining more slowly than in years past. This is good news for those looking to sell their cars, but bad news for buyers.
Captive Financing Grows
After years of surging popularity, credit unions and banks are losing auto loan market share. Car buyers are increasingly taking advantage of the best manufacturer financing incentives to secure the lowest rate. This sends more business to captive financing.
Here’s a look at how car buyers are financing in 2024, courtesy of Experian:
Captive financing is not inherently undesirable, as long as you get the best rate possible. Captive financing simply refers to loans provided by a subsidiary of the manufacturer, such as Hyundai Motor Finance, or Toyota Financial Services.
Fewer Buyers Are Financing
Cash is king in 2024, as it was last year. Fewer buyers are financing their cars as the cost of borrowing soars. Here’s a look at the latest stats, again courtesy of Experian:
In Q2 2023, 79.7% of new cars and 38.4% of used cars were financed. This is in comparison to last year’s figures of 83.5% for new car purchases, and 41.5% for used cars.
A concerning trend is the sidelining of consumers with lower credit scores from the used car market, largely due to persistent high auto finance rates. Subprime and deep subprime used car loans now make up just 22.04% of the market, down from 29.96% in 2020.
Overarching Observations: The Bigger Picture
It’s crucial for today’s car buyers to know what they’re getting into when signing on the dotted line. Auto finance rates haven’t been this high in two decades. Many drivers are experiencing higher monthly payments driven by soaring interest rates for the first time. Those who are caught off guard are more likely to become delinquent, and may become the target of a vehicle repossession.
Stay informed and secure the best deal when you buy your next car with expert insights. Try CarEdge Data for behind the scenes market analysis. Looking for personalized help? Work 1:1 with a Car Coach to save the most, or have a quick chat when you schedule your first Consult call.
Buying a car doesn’t have to be miserable. Let us know how we can help you score big wins with your next ride!
A Step-by-Step Guide to Your Auto Lease Contract
The last time a car commercial grabbed your attention with an attractive lease deal, you were probably bombarded with a flurry of rates, payments, and terms squeezed into a mere thirty seconds. So, what exactly is a car lease?
An auto lease is a long-term rental agreement for a vehicle, governed by specific terms and conditions. The lease terms are mutually decided by the customer and dealership. Intriguingly, a third-party leasing company takes actual ownership of the vehicle and then leases it to you.
Let’s dissect a vehicle lease agreement into its four primary components:
- The Capitalized Cost
- The Residual Value of the Vehicle
- The Money Factor
- The State Sales Tax
These core factors dictate the overall cost of the lease, subsequently influencing your monthly payment.
Let’s take a closer look at each of these four parts of an auto lease. Once we’ve covered the basics, we’ll familiarize you with the parts of a lease contract, so you know exactly what you’re getting into. Skip ahead to the example here if you like.
The Four Parts of a Car Lease
1. Cap Cost (Capitalized Cost)
The cap cost diverges from the out-the-door price, which integrates the vehicle price with all taxes and fees. Instead, you negotiate the cap cost during a lease, representing the sum the leasing company pays for the car. This figure typically includes:
- Negotiated selling price
- Documentation fee
- Miscellaneous charges
- Additional add-ons or services
It’s important to note that some of these expenses, like security etching or nitrogen-inflated tires, are negotiable. To provide context: a $1,000 increase in cap cost approximates to an additional $27 monthly on a 36-month lease.
Before committing, scrutinize every detail of the buyer’s order, distinguishing legitimate fees from the negotiable ones.
We’ll take a look at the parts of an auto lease contract in a bit, or you can skip ahead to it here.
2. Residual Value
This value mirrors the car’s projected worth at the end of the lease. Depreciation during the lease term is what you’re paying for. If, for instance, the residual on a 36-month lease stands at .75 (75%), you’re essentially covering the 25% anticipated depreciation over that period.
Residual values, set by the leasing company, vary depending on the yearly mileage you’re permitted (standard figures being 7,500, 10,000, 12,000, or 15,000 miles). Dealerships cannot modify these values, with the sole exception being adjustments for additional allowed mileage. This residual is disclosed, highlighting what you’d need to pay if you wish to purchase the vehicle at the lease’s end.
3. The Money Factor
Similar to an interest rate on a car loan, the money factor can be marked up, benefiting the dealer. Dealers typically receive a money factor (for instance, .00125) from a lender, and might mark it up by 50 to 100 basis points. The disparity between this base rate and the marked-up rate translates into profit for the dealer.
Pro Tip: Always aim to haggle the money factor close to its buy rate.
4. Sales Tax
Sales tax varies state-by-state. See your state’s tax rates here. While most states append the tax to the lease’s total price, others like New York, New Jersey, Minnesota, Ohio, and Georgia impose it upfront on the overall lease payments. Virginia, Maryland, and Texas, on the other hand, tax the total selling price (cap cost). Though non-negotiable, understanding your state’s tax nuances is crucial for understanding what you can afford in any car deal.
Estimate Your Monthly Lease Payment
At CarEdge, we’re always working on something new to help demystify car buying, car selling, and ownership. If you’re considering a new car lease, estimate your monthly payment in seconds with our latest free tool: our car lease calculator.
Understanding Your Car Lease: A Real-World Example
There’s no better way to learn than to work through a real example. That’s exactly what we’re about to do by breaking down the parts of a real auto lease contract.
In this image, we can see the first few lines of a lease contract. Expect this portion to contain the contact information for you and the lessor, who is the dealer. There will also be information about the specific vehicle you are leasing. Make sure the VIN number matches the car you want! If you have a trade-in, that information will be listed here too.
The next part of your vehicle lease agreement includes some very important information. First, check the ‘Amount due at lease signing’, which is box #2 in our example. Does it match the deal you’re expecting?
Now let’s move on to box #3. Check the box for the remaining months of payments after the first payment. This number should say 23 if you’re signing a 24 month lease, 35 if you’re signing a 36 month lease, and so on. This is how you confirm that you’re getting credit for the first month’s payment, which is due at signing in most cases.
Below that, you’ll see an itemized list of what you’re paying at lease signing. Pay attention to the details in section 6.
You should see the license, title, registration and tax fees listed. You’ll also see the Doc Fee, which varies by state.
Watch Out For Add-Ons
Pay careful attention to the line items that may be dealer add-ons that you don’t want. In section 6 in our example, lines A.11 through A.13 are where we would see this.
Section 6.B line #2 is where you would see any rebates or incentives you’re expecting. If you’re expecting an electric vehicle tax credit, for example, it should be shown here.
Now, make sure the ‘Total’ number equals what you expect.
The above section explains how your monthly payments are calculated. It can be tough to follow, but we’ll highlight which parts are most important to double-check.
Are There Markups?
Section 7.A is the total price of the vehicle, which should be MSRP, or ideally discounted from MSRP, plus any additional fees you agree to.
In this example, the total price includes the agreed upon selling price of $57,409 plus the acquisition fee of $650 and the electronic filing fee of $33 for total price of $58,092.
Double check this number. If the gross capitalized cost is higher than you’re expecting, find out why. Is there a dealer markup on the vehicle? You’re paying more than you should if so.
What is a ‘rent charge’, you ask? The rent charge is the total interest that is paid during the term of the lease. The rent charge is based on the agreed upon money factor used in the lease calculation.
Ensure that the allowed mileage matches what you expect. Learn what the excess mileage rate is if you exceed the limit.
Towards the end of this section, you’ll see the ‘total monthly payment’. Is this what you expect? This is how much you’re agreeing to pay every month.
Double Check Your Numbers
You need to make sure that the discounted selling price that you negotiated matches line A in section 11. Section 11 line B will also list any accessories or options that you have agreed to be added to the selling price, such as excess wear and tear protection, tire and wheel insurance or even a service contract. Please make sure that nothing has been added that you have not agreed to.
Read the first line in bold. You do NOT have to purchase add-ons or protection products to enter into the lease. No matter how hard the salesperson pitches their value, remember that you can say no. If you do agree to any, they should be listed here.
The total taxes to be paid for the lease are included. Make sure this number is what you expect. Taxes and state fees are estimated because if the state increases the sales tax rate or vehicle registration rates during the term of your lease agreement you will have to pay the new rates and fees.
Below these first few pages of the car lease agreement, you’ll have standard disclosures for your auto insurance policy information, vehicle warranties, and additional terms and conditions. Wondering what happens if your leased car gets stolen? You’ll find that information here.
Lease Terms Are Negotiable!
Every week, our team of Car Coaches helps hundreds of drivers negotiate the best lease terms. It’s a commonly held misconception that leases aren’t negotiable, but that’s far from the truth. With basic knowledge of how to navigate an auto lease contract, you can stay in control of your deal.
Ready to work with an auto industry insider for the most savings? Here’s how we can help.
We also have hundreds of free resources, including these reader favorites:
- The Best Lease Deals This Month
- What to Do At the End Of Your Lease
- The Most and Least Negotiable Cars
Stop by the CarEdge Community forum! We’d love to see you there.
Will the UAW Strike Cause Car Prices to Rise? What We Know
In an unprecedented move, 13,000 workers from Detroit’s “Big Three” – Ford, General Motors, and Chrysler (now part of Stellantis) – have initiated a coordinated strike, the likes of which haven’t been seen in UAW’s 88-year legacy. Led by UAW President Shawn Fain, this strategic “stand-up strike” not only challenges automakers but also poses a pressing question: How might this impact car prices in the coming weeks? Let’s talk about how the UAW union strike could impact car buying, and what the range of possibilities are.
The Scale of the UAW Strike
Is it a car buying apocalypse? You’d think so from some of the headlines this week. However, not everyone sees this as quite such a big deal. Sam Fiorani of Auto Forecast Solutions comments, “This is more of a symbolic strike than an actual damaging one.” But he also warns, if the negotiations fail to progress, a more extensive, damaging strike might just be around the corner.
Yet, the union’s strategy here is clear: by opting for targeted walkouts, the UAW hopes to keep their strike pay costs down, leveraging their $825 million strike fund against the automakers’ multi-billion profit reserves. And while Stellantis might be sitting on a comfortable 90-day Jeep stockpile, they stand to lose more than $380 million in just a week, should the Toledo Jeep plant face shutdowns.
What’s more, new car inventory in the U.S. is already swelling. GM, Ford and Stellantis dealer lots are chock-full, and this trend is expected to continue into October. So, where does that leave car prices? They’re still high, but are trending downward. The real deals are for those who negotiate with data-backed leverage.
Our team of Car Coaches are finding more and more negotiability in today’s car market. However, most of these car price soft spots are NOT advertised online. Sure, manufacturers are advertising a few great APR and lease deals, but most of the savings are coming from negotiation know-how.
Check out these negotiation success stories to see what we mean.
Dealerships Love This…
From a car dealership’s perspective, the strike might be a disguised blessing. Memories of the semiconductor chip shortages of 2021-22 still linger. That period saw many dealerships thriving on the opportunity to invoke ‘market adjustments’, leading to lucrative ‘dealer markups’. Simply put, less supply often equals more demand, enabling dealers to push prices up.
Remember, dealer markups, also known as ‘market adjustments’, are nothing but added profits for the car dealership.
Should Buyers Be Worried About Rising Car Prices?
Here’s the billion-dollar question: Will this strike inflate car prices?
A lot hinges on the strike’s duration. If the UAW strike stretches beyond 14 days, there’s a good chance we’ll see prices start to nudge upwards. However, considering the leverage UAW holds and the possible intervention from the U.S. government, a prolonged strike seems unlikely.
For those marking their calendars for a late 2023 car purchase, our advice is simple: Stay calm and carry on with your car buying preparations. Even with the specter of a UAW strike looming large, our expert Car Coaches are optimistic about end-of-the-year deals.
Car Market Update for Fall 2023: New and Used Car Forecast
Car Buying Help – Final Thoughts
Feeling uneasy about the car market, or simply want some help from a car buying pro? From free car buying resources to 1:1 expert help with your deal, the CarEdge team is here to help! Prefer a simple consultation with an expert? We’ve got that too. Whether you’re looking for car market price tools, or your own personal car coach, we’ve got you covered.
New this week: Car Buyer’s Deal School is now 100% FREE! Start learning today!
We’ll leave you with these reader favorites:
The Best Auto Loan Rates This Month
Connect with thousands of empowered consumers at our fast-growing online forum, the CarEdge Community (100% free)!
The Best New Car Incentives in September: The Return of 0% Financing
As the seasons transition, so does the car market! September has welcomed surprisingly great new car incentives from some brands, and pathetic offers from others. Auto manufacturers are eager to push 2023 models into the limelight before the new year arrives. If you’re in the market for a new car, now’s your golden opportunity. Here’s a roundup of the most enticing offers for buying and leasing.
The Best Auto Loan Rate Offers
The highest interest rates in 20 years are not stopping OEMs from launching great financing deals in September. In fact, we were shocked at the abundance of 0.0%-0.9% APR offers. Automakers likely see this month as the last chance to sell 2023 models before they take on a dated feel. Some of your favorite brands are offering jaw-droppingly low interest rates.
Let’s take a look at the best of the best. For a complete list of new car financing offers, head to this resource.
Hyundai: As low as 0.9% APR for all 2023 models, including the popular Palisade, Santa Fe, Sonata and more. The IONIQ 5 EV also qualifies for up to $7,500 in cash incentives. See details at HyundaiUSA.com.
Kia is also offering 0.9% APR financing for all 2023 models for well-qualified buyers. See details at kia.com.
Honda: 0.9% APR for the Honda Accord (including Hybrid), Civic Hatchback, Civic Sedan, CR-V, HR-V, Odyssey, Passport, Pilot, Ridgeline. See details at Honda.com.
Toyota: 1.9% APR financing. See details at Toyota.com.
Chevrolet: 0% financing for the Silverado 1500, and no payments for 90 days (Truck Season Sale). Trailblazer, Equinox, Blazer, Traverse all qualify for 2.1% APR. For all other models, including the Tahoe, Suburban, Colorado and Bolt, Chevy says to contact a dealer for the latest offers.
Ram, Ford, Nissan: Can you believe it? A straight 0.0% APR for many 2023 models. Unfortunately, the automakers say you must contact a dealer for specific offers.
Mazda: As low as 0.9% APR for all 2023 models, including the CX-30, CX-9, and other models.
GMC: APR as low as 0.9% for most models, including the Sierra 1500, Terrain, Yukon, and more.
The Best Cash Incentives in September
When it comes to cash incentives, electric vehicles are stealing the show. Especially those not falling under the revised federal EV tax credit. Here’s where you can save the most:
Hyundai IONIQ 5: A huge $7,500 off for some trim options. Caution: some dealerships continue to mark up their Hyundai EVs. The deals ARE out there! See details at HyundaiUSA.com.
Kia EV6, Niro EV, Chevrolet Bolt: Up to $5,000 off. Learn more about Kia deals at kia.com and see Chevrolet offers at chevrolet.com.
Toyota bZ4X: Another whopping $7,500 off. Caution: Toyota’s first EV charges slowly. Think about your charging needs and preferences before buying any EV. Learn more about this offer at Toyota.com.
Nissan Ariya (all-new) and LEAF: $3,750 cash incentive. See details at NissanUSA.com.
Ford: An enticing $3,000 off for both the Mustang Mach-E and F-150 Lightning. See details at Ford.com.
Toyota Prius Prime PHEV: Up to $4,500 off. Learn more at Toyota.com.
Stellantis is bringing stellar new car incentives this month, but their bloated inventory numbers show that they may have no choice. They are offering almost 15% off MSRP for some models, including the Jeep Cherokee, Gladiator, and others. This translates to up to $7,000 for higher trims. And for the Ram 1500? Up to $4,000 off the MSRP!
The Best Lease Deals in September
Ready to drive the latest models without the long-term commitment? Here are the most attractive lease offers.
We detail ALL of the best lease deals from every major brand here.
The Cheapest Car Leases
Hyundai Venue: $151 per month with $3,281 due (Details)
Hyundai Kona: $202 per month with $4,212 due (Details)
Hyundai Elantra: $219 per month with $3,499 due (Details)
Kia Forte: $229/month for 36 months with $2,799 due (Details)
Subaru Legacy: $269 per month for 36 months with $3,255 due (Details)
Honda Civic Sedan: $259 per month for 36 months with $3,399 due (Details)
Toyota Corolla: $321 per month for 36 months with $3,031 due (Details)
The Best SUV Lease Deals
Chevrolet Equinox: $299 per month for 24 months with $2,339 due (Details)
GMC Acadia: $289 per month for 24 months with $2,999 due
Mazda CX-30: $301 per month for 36 months with $2,999 due at signing. (Details)
Hyundai Santa Fe: $269 per month for 36 months with $3,999 due (Details)
Honda CR-V: $309 per month for 36 months with $3,399 due (Details)
The Best Truck Leases
These are the best truck lease deals right now:
Ram 1500: $359/month for 42 months, $5,599 due at signing (Details)
Silverado 1500 4WD LT: $399 for 24 months with $5,124 due (Details)
Toyota Tacoma: $364 per month for 36 months with $3,064 due (Details)
Should You Lease an Electric Vehicle?
There are reasons to consider leasing an EV these days. There are fuel savings, the novelty of transportation reimagined, exhilarating performance, and lower emissions. Plus, EV leases are becoming more affordable! The most compelling reason to lease an EV is the protection from ending up with an outdated car. With a lease, you’ll be able to upgrade to a faster charging, longer range model when your lease term is complete. That’s a lot better than being stuck with a slow charging, less-than-capable electric vehicle in a few years!
Here’s a look at the best EV lease deals this month:
| Make | Model | Trim | Months | Monthly Payment (Pre-Tax) | Due at Signing |
|---|---|---|---|---|---|
| Kia | Niro EV | Wind | 24 | $189 | $3,999 |
| Kia | EV6 | Light Long Range | 24 | $219 | $3,999 |
| Toyota | bZ4X | XLE | 36 | $359 | $0 |
| Ford | F-150 Lightning | XLT Standard Range | 36 | $550 | $7,059 |
| Ford | Mustang Mach-E | Premium AWD | 36 | $366 | $5,575 |
| Chevrolet | Equinox EV | 2LT | 24 | $299 | $3,169 |
| Hyundai | Ioniq 5 | SE Long Range | 24 | $189 | $3,999 |
| Hyundai | Kona EV | SE | 24 | $189 | $3,999 |
| Tesla | Model 3 | RWD | 36 | $309 | $2,999 |
| Tesla | Model Y | Long Range AWD | 36 | $339 | $2,999 |
Even Better Deals Around the Corner
The automotive landscape is in flux, and upcoming weeks may bring even more enticing new car incentives. With rising interest rates surpassing 7%, coupled with MSRP escalations and a cooling used car market, the scales tilt towards reduced demand for brand-new vehicles. Reduced demand almost always results in stronger manufacturer incentives to lure in buyers. This is particularly evident for the high-ticket trucks and SUVs.
Keep track of new cars with the most and least inventory for the latest negotiability updates.
As you head out to shop the dealer lots, remember this: if it’s taxable, it’s negotiable. Even the models with the tightest supply are negotiable with the help of a CarEdge Coach. Check out these car buying success stories!
Take this FREE resource with you: The Ultimate Car Buying Cheat Sheet (Downloadable)
Ready to work 1:1 with a car buying pro? Learn more about CarEdge Coach, your path to the most savings and the least stress. Prefer a DIY path to car buying? With CarEdge Data, you have the tools at your disposal to find the best deals and identify opportunities for negotiation.
And of course, we have hundreds of 100% free car buying guides just a click away. Don’t forget to connect with the CarEdge family over on our Community Forum.
Honda’s Inventory Shortage: Here’s How to Strike a Great Deal
Honda inventory is rising, and is now the highest it’s been since before the pandemic. As a result, Honda models are more negotiable today than at any point in recent years. Across the brand, there’s a 47-day supply of new Honda cars and SUVs.
The current state of Honda’s inventory offers insights into which models provide more wiggle room for negotiation and which ones are a tighter squeeze. Plus, we’ll take a look at the best Honda offers this month. Let’s delve into the numbers and see where you might find the best deals.
Navigating Honda’s Current Stock
Savvy car buyers have a little-known trick up their sleeve: market day supply. Previously, market day supply (MDS) was only used by auto industry insiders. We’re out to change that.
Market Day Supply takes into account the existing inventory of a new or used vehicle, and the selling rate over the last 45 days. What you get is the number of days it would take to sell ALL vehicles in stock at current selling rates, assuming no new inventory was added. In simple terms, MDS reflects the level of demand for a car. High MDS almost always means high negotiability. Low MDS suggests that deals will be harder to come by.
For starters, a ‘healthy’ MDS in the car market is somewhere between 45 and 60 days of supply. Anything below 20 days is a real shortage, and anything above 80 is a serious oversupply. Today, Honda averages a healthy 47 days of supply. For Honda, this is quite high.
When assessing the most negotiable new Honda models based on present market supply, three models stand out: the HR-V, Odyssey and surprisingly, the remaining 2023 CR-Vs. These vehicles offer buyers a good chance to get a sweet deal.
Here’s the latest Honda inventory nationwide. We’ve included used Honda inventory numbers to highlight possible opportunities for better deals, depending on the model.
For local market numbers, check out CarEdge Data.
Honda Sedans:
| Model | New/Used | Market Day Supply (October '23) | Market Day Supply (December '23) | Total For Sale |
|---|---|---|---|---|
| Accord | New 2024 | N/A | 56 | 23,548 |
| Accord | New 2023 | 30 | 58 | 2,662 |
| Accord | Used 2022 | 49 | 60 | 2,204 |
| Accord | Used 2021 | 49 | 54 | 3,285 |
| Accord | Used 2020 | 43 | 48 | 3,384 |
| Civic | New 2024 | N/A | 50 | 17,167 |
| Civic | New 2023 | 34 | 62 | 360 |
| Civic | Used 2022 | 50 | 60 | 2,038 |
| Civic | Used 2021 | 53 | 58 | 2,196 |
| Civic | Used 2020 | 40 | 46 | 4,245 |
Honda SUVs and Trucks:
| Model | New/Used | Market Day Supply (October '23) | Market Day Supply (December '23) | Total For Sale |
|---|---|---|---|---|
| CR-V | New 2024 | 24 | 34 | 33,171 |
| CR-V | New 2023 | 12 | 99 | 1,106 |
| CR-V | Used 2022 | 45 | 60 | 2,383 |
| CR-V | Used 2021 | 47 | 62 | 4,186 |
| CR-V | Used 2020 | 41 | 51 | 5,743 |
| HR-V | New 2024 | 47 | 58 | 21,075 |
| HR-V | New 2023 | 151 | 891 | 691 |
| HR-V | Used 2022 | 59 | 48 | 1,957 |
| HR-V | Used 2021 | 52 | 54 | 2,331 |
| HR-V | Used 2020 | 39 | 50 | 1,427 |
| Odyssey | New 2024 | N/A | 45 | 8,089 |
| Odyssey | New 2023 | 31 | 120 | 512 |
| Odyssey | Used 2022 | 74 | 79 | 833 |
| Odyssey | Used 2021 | 61 | 62 | 1,116 |
| Odyssey | Used 2020 | 51 | 61 | 1,098 |
| Passport | New 2024 | N/A | 55 | 2,720 |
| Passport | New 2023 | 45 | 30 | 3,003 |
| Passport | Used 2022 | 56 | 76 | 604 |
| Passport | Used 2021 | 60 | 71 | 1,379 |
| Passport | Used 2020 | 53 | 61 | 664 |
| Pilot | New 2024 | N/A | 45 | 12,496 |
| Pilot | New 2023 | 26 | 45 | 522 |
| Pilot | Used 2022 | 52 | 71 | 1,760 |
| Pilot | Used 2021 | 48 | 59 | 3,032 |
| Pilot | Used 2020 | 47 | 62 | 1,560 |
| Ridgeline | New 2024 | N/A | N/A | N/A |
| Ridgeline | New 2023 | 39 | 53 | 6,904 |
| Ridgeline | Used 2022 | 57 | 63 | 424 |
| Ridgeline | Used 2021 | 61 | 64 | 370 |
| Ridgeline | Used 2020 | 47 | 57 | 576 |
On the other hand, the least negotiable models in the Honda lineup, perhaps unsurprisingly, are the popular CR-V and the spacious Passport. But don’t lose hope; while new models might be challenging to haggle over, there’s a silver lining.
Used Honda Deals Are More Abundant
A closer look at Honda’s inventory reveals that the used car market offers a more balanced playing field. For those eyeing a Honda, it seems that the gently used 2021-2022 models are where the action is. Cars from this year appear to be in ample supply, making them a prime target for savvy buyers aiming for a reasonable deal.
Remember: in general, 2021-2022 used Honda models are in high supply. However, there are nuances from one model to the next. For specific data points for particular models in certain markets, we recommend CarEdge Data.
We track the used car market weekly here, and it’s clear that wholesale prices are in freefall. Slowly but surely, these price declines are translating to retail markets. It seems that used car dealers are fighting the overall market’s downward trend as long as they can.
The Best Honda Deals This Month
Even with low inventory for its most popular models, Honda is offering great financing and lease deals this month. Caution: dealers are known to add ‘market adjustments’ onto the price tag of the popular, low inventory models. We do NOT think any Honda buyers should agree to pay any dealer markups in today’s market. Need assistance negotiating markups and fees? Speak to a CarEdge Car Coach today.
Honda Finance Offers
The average APR for a new car loan is 9.95%, so these deals are worth considering.
Ridgeline: Enjoy a 0.9% APR for 24 to 36 months (or 2.9% APR for up to 60 months).
Accord and Passport: 2.9% APR for up to 40 months.
Other Models: 3.9% APR for up to 48 months (or 4.9% APR for up to 60 months).
See offer details at Honda.com
Honda Lease Deals
Accord: Drive away with a lease at $299/month for 36 months, with an initial payment of $3,299.
Civic Sedan: Get behind the wheel for $259/month, with $3,299 down.
CR-V: Lease deals start as low as $309/month for 36 months with a down payment of $3,399.
Passport: If size matters, this larger vehicle is available starting at $369/month for 36 months, with $4,899 down.
See offer details at Honda.com
Closing Thoughts on the Honda Market
The key to negotiation lies in understanding the dynamics and positioning oneself strategically. So gear up, arm yourself with this intel, and drive into your Honda negotiation with confidence. Remember, even in a market pinch, there’s NO justification for overpriced add-ons or inflated warranties.
Ready to negotiate like a pro? Try CarEdge Coach and CarEdge Data today! With these tools at your disposal, you can take control of your car buying experience, understand market dynamics, strategize effectively, and secure the best deal possible. We’re simply here to help!
