The Nissan Rogue Sales Dilemma: 2023 Models Still Lingering

Introduction

Nissan is facing a challenge with its 2023 Rogue models, as they are still sitting unsold on dealer lots in 2024. To address this issue, Nissan has introduced a new incentive program to encourage sales and clear out the backlog of older models.

The Incentive Program

A recent memo sent to Nissan dealers outlined a $1,000 incentive for each 2023 Rogue sold. Dealers must meet their individual sales targets to qualify for this incentive, which applies to both 2023 and 2024 models. This volume-based retail program aims to boost sales of the Rogue, Nissan’s top-selling model in the U.S.

Challenges and Consequences

While the incentive program may help clear out older inventory, it could also impact the pricing and residuals of the 2024 Rogue models. The pressure to discount older models may affect the perceived value of the newer models, especially since the 2024 Rogue is only a refresh and not a complete redesign.

Dealer Reactions

Dealers have mixed feelings about the incentive program, with some seeing it as an opportunity to increase sales volume while others express concerns about long-term customer retention. The age of Nissan’s supply has increased to 112 days, well above the industry average, prompting the introduction of a financing incentive to move old stock.

Conclusion

As Nissan navigates the challenge of clearing out unsold inventory, dealers are adapting to new tactics and incentives. While the short-term impact may boost sales, the long-term consequences on pricing and customer loyalty remain uncertain.