Lincoln Dealers Are Practically Giving 2023 Models Away To Sell Them

In the market for a luxury car bargain? You may want to head down to your local Lincoln dealership, where you’ll find an overwhelming inventory filled with unsold MY2023 vehicles.

According to data from Cox Automotive, the premium automaker had more than four months of inventory at the end of February. This is higher than any non-Stellantis-owned brands, says the report. At the end of last month, Ford’s luxury arm stated that it has more than 33,000 vehicles in stock, a third of which were from the 2023 model year.

This surplus of vehicle stock comes at a tricky time for Lincoln dealerships, with Chris Poulos, chairperson of the Lincoln National Dealer Council, describing the situation to Automotive News as a “perfect storm,” adding, “We’re dealing with it on a day-to-day basis. All in all, yes, inventories are up, but I look at it as an opportunity to get some volume.”

Despite Poulos’ can-do attitude, many dealers are worried about the overflowing inventory. Retailers are concerned about moving these vehicles off the showroom floor, as unsold vehicles could impact floorplan costs and impede their ability to market the latest models.

Lincoln Using Incentives To Clear MY2023 Vehicles

Lincoln has been leaning heavily on incentives to get old models out of dealerships and onto driveways to make room for the latest models. In January and February 2024, Lincoln spent an average of $4,665 per vehicle, 65% higher than the same period last year, according to a report from Motor Intelligence.

Company President Dianne Craig said the company is doing what is required to get rid of old models, noting that it is going well. “The last couple [of] months, we’ve made some really good progress,” she said. Like several other automakers, Lincoln has also announced that it will be slowing its transition to electric vehicles.

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Every model in the Lincoln lineup now has access to BlueCruise hands-free driving functionality.

Aside from this, Lincoln has found some creative ways to address the inventory issue. The requirements surrounding the loaner car program have been changed, with dealers being told 2023 models only have to be used for 20 days or 500 miles, as opposed to the usual six months or 3,000 miles.

Why? Two Lincoln dealers, who spoke anonymously, said vehicles can be marked as sold once they are on the loaner car program. “They’re just trying to get you to report them as sold … it’s just a way to pad the numbers; it makes your inventory not look as bad as it is.”

Several Issues Led To High Lincoln Inventory

Poulos disagrees with this notion, claiming the updated loaner car program helps dealers cycle quickly through these cars. “It certainly gives me the opportunity to take any loaner incentive I have available to me to market through the vehicles they have in service and get them to customers.”

The delay can be attributed to several issues. The global supply chain crisis has finally ended, meaning supply is coming in quickly and regularly. However, Lincoln was affected by the UAW strikes last year, which meant deliveries of the Aviator were delayed. Let’s not forget that a stop-sale was placed on the SUV due to a faulty rearview camera.

While Dianne Craig is confident that Lincoln will experience growth in the coming year, she said the automaker is monitoring the inventory situation closely. “Especially as a luxury brand, you’ve got to be really mindful of when you’re putting on incentives because we’re watching residual values, and it’s all connected,” she added.

It’s incredible to think that automakers are again facing high inventory issues just a few years after the height of the COVID-19 pandemic. Just a few years ago, desperate customers would have shoved each other out of the way for one of these new cars and would probably have paid a premium for them, too.