Nissan Tells Dealers to Fire Sale Certain 2024 Vehicles

by Carl Malek | May 10, 2024

Nissan pushes its dealer network to sell certain 2024 models at a loss as the Japanese car giant scrambles to eliminate massive pool of inventory to make room for key 2025 models.

Nissan is giving dealerships the go-ahead to discount select 2024 models

Nissan is riding high on solid first quarter sales with the company reporting that sales in the first three months of the year rose by 8.5% and it also comes off of an impressive sales performance in 2023. Nissan is hoping that some of its upcoming 2025 models will help maintain this strong momentum while also luring in more buyers to the brand.

However, before the company can focus on those long-term goals, it needs to address a growing inventory problem at its dealerships that not only threatens to blunt the rollout of these models but also has the potential to become a persistent headache for Nissan at a time when it needs all the proverbial pieces to fall into place to help generate profits.

Nissan encourages spring cleaning at dealerships

Nissan is leaving no stone unturned as it attempts to help its dealerships prepare for the 2025 models

One way that Nissan is attempting to solve this problem is by telling its dealerships to sell certain 2024 models at a loss according to a recent internal memo that was published by Automotive News. The memo authorizes dealerships to discount their 2024 vehicles by as much as 10% below invoice to try and get them to move off the lots quicker.

While many dealerships will not be happy to hear that they will potentially be making less profit on the 2024 models that they sell, these franchises will also have their work cut out for them in regards to trying to get these unwanted vehicles off their lots as quickly as possible. Nissan recently reported that it has nearly a 100-day inventory of new 2024 models, and while the company also saw its fleet sales rise by 22.4% in 2023. It still hasn’t been enough to move them off dealer lots to make room for the speedy transition to 2025 model-year vehicles.

Plan to focus on certain models & trims

Nissan dealerships will target certain slow-selling models and trim with new plan

While Nissan’s fire sale strategy may seem like it will be covering all of its 2024 models at first glance, expect the company to focus heavily on certain models with high-performance icons like the Nissan GT-R and the Z coupe being exempt from this push for sales due to their unique roles as halo products for the company. Luxury models like the Nissan Pathfinder Platinum would also be excluded to help preserve their status among well-heeled family buyers.

Instead, look for the effort to focus on models that are often the proverbial benchwarmers on dealer lots and are hard to move. They include models like the Nissan Versa and the Nissan Maxima which not only face internal sales competition from utility vehicles like the Kicks and the Rogue, but are also among the oldest vehicles Nissan has in their inventory. This age has been noticed by customers and as a result, they don’t sell well with local Nissan dealers confirming this when we spoke with them prior to the publication of this story.

In addition to slow-selling models, dealerships will also focus on moving vehicles that are equipped with certain trim levels that are sparsely equipped or lack key features that the bulk of customers want. The Nissan Versa’s base S trim is one such example, but the discounts will potentially cover other models including the 2024 Nissan Frontier King Cab S 4×2 and the Titan Crew Cab SV pickups with the Frontier S in particular often being bought by commercial buyers.

The stakes are high

Models like the 2025 Nissan Kicks promise to deliver long-term returns

In addition to giving dealerships an opportunity to unclog their inventory lots with this plan, Nissan is also hoping that the initiative will help prepare them for the long-term benefits that the 2025 models will bring to the table when they arrive to take the space vacated by the departed 2024 inventory.

One of these important models is the 2025 Kicks CUV which is being heavily updated for the new model year. Unlike the outgoing model, the new one is larger and gets new styling that helps the Kicks be more assertive, especially in the face of rivals like the Hyundai Kona and the Mazda CX-30. In addition to the new suit of clothes, the Kicks is also getting more standard technology features, a larger engine, and a newly optional all-wheel drive system to help it appeal to a wider range of customers.

That expanded appeal will help dealerships lure in new buyers with the Kicks serving as a gateway model into the rest of Nissan’s utility lineup. This gateway status has the potential to produce larger long-term returns with some of these Kicks customers potentially transferring their buying dollar to larger models like the Rogue and the Pathfinder as their needs and vehicle requirements change. As a bonus, the profits from Kicks sales will play a big role in financing Nissan’s plans to expand its presence in the EV wars with the company planning to release more models to join its existing Ariya EV on dealer lots over the next few years.