During the pandemic, automakers profited by reducing incentives and prioritizing high-end trims, but this approach has its limitations
CarEdge’s Market Day Supply (MDS) data highlights how long it would take to sell current car inventories. The numbers reveal that many vehicles, especially high-end models, linger on lots due to sky-high prices. For instance, Jeep Renegades have a 750-day supply, while the Jeep Grand Wagoneer sits at 336 days, likely because of its $104,821 average transaction price.
Most cars with long supplies exceed the industry average price of $48,000, except for the Dodge Hornet at $37,588—though even that seems overpriced for what it offers.
Luxury EVs like the Mercedes-Benz EQS also face supply issues, with a 212-day stockpile and an average price of $123,179. Dealers attribute this glut to Mercedes prioritizing high-end trims over more affordable options, a strategy they are now adjusting by scaling back EQS production in favor of lower-cost models.
Conversely, attainable cars are in demand. The Mercedes-Benz GLC SUV, with an average price of $57,272, has just a 27-day supply. This shift suggests that consumers are gravitating toward more reasonably priced options.
While automakers maximized profits during the pandemic by focusing on high-margin vehicles, continuing this strategy in the post-pandemic market seems increasingly unsustainable.
