Ten Cars People Won’t Buy

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Updated Published
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Auto dealer inventories are at five-year highs. The most important effect of this for consumers is that dealers and car companies will soon open up another aggressive round of discounts and attractive financing to move the poorest selling vehicles off the lots.

Inventories, probably larger due to poor weather, are actually big enough that the car companies even have deals on their best selling vehicles. General Motors Co. (NYSE: GM) has seen poor sales of its flagship Chevy Silverado pickup, and the discounts it has been forced to offer are extraordinary to the point where the media has battered Chevy’s sales prospects. Ford Motor Co. (NYSE: F) has been discounting its flagship F-150 pickup, the top-selling vehicle in the U.S. based on unit volume.

The brands that are in real trouble are those which have models with average inventories (also known as “days to turn”) which stretch more than 100 days. Car companies usually have 60-day inventories across all models. Inventories of hot- selling cars can have average as little as 20 days.

The 10 models automakers have the most troubling clearing have average inventories which range from 106 days for the Ford Flex to an extraordinary 148 days for the Fiat 500. Not surprisingly, the 10 cars on this list have incentives which range as high as $6,508 for the Cadillac ATS. It is notable that the Fiat 500 has done so badly. Fiat now owns Chrysler, and the Italian company hope to leverage its new beach head in the U.S> to bring in one of its most popular cars in Europe. Clearly, that has not worked

Based on Truecar data for average days on lot calculated on February 14, these are the “days to turn” and “average incentive:”

Make Model Feb ’14 Average Days to Turn Feb ’14 Average Incentive
1 Fiat 500 148 $1,907
2 Buick Verano 143 $3,178
3 Chevy Sonic 138 $1,577
4 Cadillac ATS 137 $6,508
5 Volkswagen GTI/Rabbit/Golf 137 $1,963
6 Dodge Dart 124 $2,210
7 Hyundai Genesis 119 $3,145
8 Chrysler 300 – Series 114 $4,942
9 Chevy Tahoe 107 $7,377
10 Ford Flex 106 $4,502
Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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