Discounts on outgoing stock appear predictably as a new model year approaches. The pattern is created by how dealers finance their inventory rather than by seasonal generosity.
Stock on a forecourt is borrowed money
Dealers generally do not own their inventory outright. Vehicles are financed through a facility that charges interest for every day the car remains unsold.
That cost accrues quietly and continuously, so a car that sits for months has consumed a meaningful portion of the profit it was expected to generate.
The financing arrangement also limits how much stock can be held at once, so slow-moving cars occupy capacity that could carry vehicles that sell.
An outgoing model loses value on announcement
The moment a replacement is revealed, the existing car becomes the previous version in the eyes of buyers, regardless of whether anything about it has changed.
Residual value estimates are adjusted downward accordingly, which affects finance quotations and makes the outgoing car more expensive to offer on a monthly payment.
Manufacturers respond with support so that the car remains competitive against its own successor, and that support is the source of the discount.
Targets create sharp deadlines
Manufacturers set volume targets for dealers over defined periods, and bonuses attached to those targets can be worth more than the margin on individual cars.
A dealer close to a threshold as a period ends has a strong reason to sell the next car at little or no margin, because the bonus depends on the count.
This creates the familiar pattern of better offers at the close of a quarter or a registration period, and the effect is strongest on stock the dealer already holds.
Ordering and stock cars are different transactions
A car built to order is not costing the dealer anything while it is being manufactured, so there is far less pressure to discount it.
A car sitting on the forecourt is costing money daily and may be in a specification that does not suit the next buyer to walk in.
The strongest offers therefore attach to specific vehicles already in stock, which is why flexibility on colour and options is rewarded so directly.
Why the saving is not always what it appears
A discounted outgoing model has already absorbed the drop in perceived value, so part of the discount is compensation rather than gain.
Resale later will be measured against the newer version, and the gap persists through the car's life rather than closing over time.
The saving is real for a buyer keeping the car for many years, and considerably smaller for one replacing it after a short period.