Car lots crammed with three model years
It long ago ceased to be news that the new-car industry is in disarray. It looks like overall car and truck sales will fall to levels not seen since the early 1990s, and manufacturers are offering all manner of incentives.
But one thing that may surprise shoppers when they go to a dealer is that it’s possible to find 2007, 2008 and even 2009 versions of the same model on the lot, all carrying various incentives to lure buyers.
Consider the Toyota Camry.
Dealers have 2009 Camrys — which are largely unchanged from the 2008 model — on sale with regional cash rebates of as much as $750 or cut-rate financing of 1.9 percent to 4.9 percent.
They also have 2008 Camrys, which carry regional cash rebates of as much as $1,000 or discounted financing of zero percent to 4.9 percent. Some dealers even have 2007 Camry Solaras — the two-door coupe version — with rebates of up to $2,000.
How is it possible to have three different model years on sale at the same time? Such circumstances are a result of declining sales and aggressive marketing.
Over the last two decades, the exact parameters of an individual model year have changed. Where cars and trucks were usually dated from September to September, manufacturers have been moving up introduction dates.
So a car introduced in January 2008 can be labeled a 2009 model and remain on sale as such until the fall of 2009. Manufacturers do this to add some fresh appeal to a car or truck, or to trump competitors by appearing to have the latest and best vehicles before anyone else.
But when sales aren’t booming, dealers can wind up being stuck with a lot of the previous year’s models that they have to try to sell side-by-side with that early new year version. And in today’s tough climate, a lot of 2007 models continue to languish on lots.
Mitsubishi is struggling to move the new 2009 Galant, offering a $1,000 rebate or zero percent to 5.9 percent financing, while also trying to sell leftover 2007 Galants by offering a $3,000 rebate or financing ranging from 1.9 percent to 4.9 percent.
While Detroit-based manufacturers don’t have any 2009-2008-2007 traffic jams yet, they do have a large backlog of 2007 models competing with the 2008 models.
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