America’s Car Lots Are Overflowing — Here’s Why

Issue #138

Today, we discuss why new cars aren’t selling, plus Tesla has to dish out millions to two different parties, Toyota wants to compete for the compact truck market and much more!

Market News

• Amazon will now sell used and certified pre-owned cars. Here are all the details.

• This new BMW’s EV offer poses a serious threat to other companies.

• The entry-level car segment is nearly extinct. Will it ever return? Here’s more on this. 

• Tesla is fined millions for an autopilot crash. Read more about this fascinating case here.

•  Toyota wants a piece of the compact-pickup pie and it could come out swinging with this model. 

• Someone leaked the new Honda Prelude’s price, and it has disappointed many. Here’s how much it will cost.

• Despite Tesla’s troubling times, Elon Musk landed billions as compensation. Here’s how much.

• Here’s how Mercedes-Benz teases the ultimate production plan for its future.

• Tariffs impacted General Motors so much it might have to rethink its strategy for the coming months.

• People are stockpiling gas, but here are some of the biggest risks of doing so.

Safety and Recalls

• Kia recalls more than 300,000 cars due to this potential road hazard.

• Ford recalls hundreds of thousands of cars due to this brake failure. 

• When do recalls become a bigger problem? This article explains.

Car Culture

• Readers voted, and these are the dumbest cars on sale. What are your thoughts?

• This is one of the best Jeep collections in the world, and it’s hidden deep in the desert.

• These four classic cars could drop in prices, becoming a good opportunity for collectors.

• Volkswagen had a secret concept sportscar that never made it into production. Here’s what could have been.

• Amazon will start selling used cars, but why is it using this car in its ads?

• This 52-mile time capsule even has the first owner’s cassette in it! Would you buy it?

• This woman cried her way into a discount. Would you do the same?

• One-third of BMW’s new SUV is made from recycled materials. Find out more about it here.

• There’s a Tesla diner. This review could spare you a visit, or motivate you to go.

• This Ford Bronco is a serious off-roading machine, and has a hefty price tag.

Video Of The Week

This YouTuber turned a work truck into a luxury version using only parts ordered online from China!

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In The Know

Cars Aren’t Selling—Opportunity Or Risk?

Walk through any dealer lot today, and you’ll notice something unusual: cars sitting still. For months, as this article highlights. 

But, why is this happening? 2025 was supposed to be a recovery year for automakers. This study even promised cheaper cars and more availability.

However, a perfect storm of high prices, tariffs, and shaky consumer confidence has flipped the script. 

The result? A growing backlog of unsold cars—and some big questions about what happens next.

Why Aren’t Cars Moving?

It comes down to cost and complexity. The average new car price in 2025 is hovering near $49,000, up nearly 30% from 2020, as KBB explains here.

Tariffs on imported parts are adding thousands to production costs, while interest rates—though slightly better than last year—are still making financing painful. 

We’ve discussed how tariffs have impacted the automotive industry, adding unwanted uncertainty. You can read more about it here.

Plus, as this article explains, some buyers are waiting for car prices to drop. This might not happen. 

As we explain in this in-depth article, when cars don’t sell, they don’t just sit forever. After 90 to 120 days on the lot, automakers start offering steep discounts to move inventory.

If that fails, vehicles often end up at auction or, in rare cases, exported to markets with higher demand.

But in 2025, the volume is overwhelming—and discounts aren’t always enough.

We all remember Ford’s massive efforts (which had paid off), but now the company is warning of tough times ahead, for everyone. Here’s more on what the company said. 

The Slow Sellers of 2025

CarEdge recently published a list of the slowest-selling cars in America, and some names might surprise you.

Models like the Chevy Silverado EV shouldn’t be a surprise, but the Toyota Tundra—once a hot commodity—is now sitting on lots for an average of 100 days or more.

Then there’s the Corvette Z06. Yes, the supercar everyone lusted after just two years ago is now sitting unsold, prompting dealers to slash prices by five figures, according to HotCars.

Why? Simple economics: high interest rates make financing a $120,000 sports car tough to justify.

And what about EVs?

Tesla’s Cybertruck rollout was supposed to dominate headlines. Instead, it’s dominating parking lots.

Yahoo Finance reports Cybertrucks piling up in storage yards across the country. Demand just isn’t matching supply—at least not at current price points.

The Bigger Picture

So, what happens if this continues?

Expect deeper discounts on certain models, especially trucks and EVs, as automakers scramble to clear 2025 inventory. Some brands have already paused production, as this article explains.

For consumers, this could be an opportunity—but I would be extremely cautious. Discounts look great on paper, but higher insurance, maintenance, and uncertain resale values remain factors.

Just read this article to see what we’re talking about.

The industry has faced inventory challenges before—but never with EV mandates, tariffs, and a shaky economy colliding at once. 

One thing’s for sure: how automakers handle this glut will shape car prices for years to come.

How do you feel about the slowdown? Are deep discounts enough to sway you, or are high prices still a dealbreaker?