Customers Benefit from Nissan’s Strong May Sales, Dealers Express Concerns

Citing Automotive News, Nissan dispatched a memo to dealers granting them the flexibility to offer most models at a discount of up to 10% under the invoice price. Some models may even go further—like the Nissan Armada, which can be promoted at a staggering 15% below invoice price. This initiative aims to boost the brand’s sales figures due to an elevated inventory level. As per Cox Automotive, Nissan’s inventory supply of 98 days surpasses the 72-day industry average.

However, dealers show less enthusiasm compared to customers. Instead of using corporate incentives to provide dealers the financial leeway to sell below the invoice price, Nissan is shifting the financial burden to the dealership level.

“Nissan is stating, ‘We cannot afford to compete in the market, so that responsibility falls on you,’ ” expressed an anonymous dealer to Automotive News. “The accountability has transitioned from the factory to us.” As per another dealer, this strategy will result in Nissan saving hundreds of millions of dollars in rebates.

Nevertheless, dealerships are not obliged to sell cars below the invoice price—they can merely advertise remarkable discounts. Once customers flock in owing to the remarkably low advertised prices, sales personnel can entice them with upgrade options that elevate the prices back up. This scenario is likely to prevail in most sales, as continuously selling cars below cost is economically unsustainable.

That being said, if you are content with minimal additional features, your chances of driving off with nearly any Nissan model below the invoice price this month are high. This situation might be particularly advantageous for Armada customers, as Nissan’s three-row SUV comes well-equipped from the get-go, eliminating the need for additional options that could inflate the already discounted price tag.

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