In 2020 the COVID-19 pandemic ripped apart the world. Not only did it cause many deaths, it also led to a decline in the economy due to the inability to produce or generate new products. Factories all over the world were shut down, which led to a shortage of many products, including vehicles.

The pandemic also led to a decline in new vehicle sales in 2020 because the world sat at home. Demand decreased and there was left inventory, to begin with. As the next year of 2021 began, new car sales increased. On top of this, consumers now have the choice whether they want to buy a car from the previous model year, 2020, or the current model year, 2021. 

Why Buy a New Model 2020 in 2021?

Because dealers are looking to clear out the 2020 models there are often a ton of deals for these vehicles. The newer 2021 and even some 2022 are beginning to roll out, and many already have. It is common for these to be released at the end of the year, which results in a surplus. Combine this with the situation that occurred during the pandemic, and it creates an ideal environment for the consumer. Consider a few things before stopping buy and making a decision to purchase either a 2020 or 2021 model.

End of Model Vehicles are Priced Right

Dealers want to clear their lots and are ready to move these cars. Not only may you find cash incentives, but you will also find incentives like 0% APR financing and huge trade in values. This is only true if you buy an end-of-model-year vehicle, which means you can easily find a brand new vehicle for less.

How Long Do You Plan to Own the Car?

If you are someone who likes to purchase a new car every few years then this might not be the best optino for you. This is because by having the newest model, it will be worth more in a few years. Despite this, if you are saving 30% on a new vehicle by purchasing the 2020 version, it might be worth it. If you want to own your car for five or more years then you will be losing a good amount on your car’s value already, and it is probably a better option to go with the 2020 model.

You Want New Technology

It makes sense to want new technology. Having new and advanced features such as autopilot, self-park, wireless phone charging or other design trends is tempting. Despite this, there may not be a huge difference in models between the 2020 and 2021 unless it was redesigned. Not all models change each year, for example the 2020 Nissan Murano is exactly the same since 2015. Most often the features generally remain unchanged, other than that of the outside of the car. If you are looking to truly examine the differences, these can typically be found on the dealer page.

High Inventory of 2020 Vehicles in 2021

Some models have a lot of 2020 inventory still in stock that has not been used at all. This means that although they have never been driven, they are providing a lot of discounts for consumers. Out of over 700,000 new cars for sale, the inventory was analyzed in a study. This took into consideration new 2020 and 2021 models, listed for sale as of January 29, 2021. 

What was found, is that there is 9.5% less new car inventory from 2021 as compared to last year at the same time. This may be due to automakers delaying releases of their new cars due to destabilization from the last year. This is an amazing opportunity for those who are looking for a brand new car, at a lower price.

Highest Inventory New Cars (2020)

The average new 2020 model car has 22.5% of its inventory remaining the previous year. Because of this, 24 models have 105% (or more) of the typically inventory on lots around the country.

Ford

With 90.4% of new car inventory being the 2020 model, the Ford Escape is a car you will most likely be able to get for a steal. This is because Ford Escape sales dropped by 26% in 2020 compared to 2019. Because of this, Ford stopped production of the new 2021 models until January 2021. This is somewhat unheard of but has caused other problems as well. Now the Ford Escape is suffering from competing with its own product line such as the 2021 Ford Bronco Sport. Although they are similar in MSRP price, the 2020 Escape can probably be found as a much better deal due to it being one year older. 

Going along with the lineup of Ford, five more of these cars ranked as some of the largest inventory available. These include:

• EcoSport
• Expedition
• Expedition Max
• Ford Ranger
• Ford F-150

Because the 2021 Ford EcoSport did not arrive at dealerships until late 2020, there is a huge number available on the lots. The Expedition and Expedition Max saw huge decreases in sales in 2020 over 2019, which now has created a number of these 2020 models. On the opposite end the Ford Ranger could not keep up with demand, and the F-150 had a redesign. This lowered demand for the 2020 models and dropped prices respectively.

Chevy vs Buick

The Chevrolet Bolt EV 2020 has 68.9% of its new car inventory still on the floor of the dealerships, but it also has a 26% increase in 2020 sales over 2019. This may have contributed to how many cars they had in inventory left over. Now, dealers really want to move these models and there are discounts up to $14,000 in incentives being offered.

Another Chevy that makes the list as one of the most 2020 in inventory for 2021 is the Chevrolet Trax. After cutting production of the Trax to keep up with demand for the new Trailblazer, there is a lot less demand for the Trax. This makes it a lot cheaper to purchase as there is 48.6% of the inventory on the dealership floor.

Buick on the other hand releases the Envision in a redesign for 2021 but has limited inventory due to arriving in December 2020.

Hyundai vs Chrysler

Hyundai Santa Fe and Hyundai Palisade influenced one another. Santa Fe had 57.7% of its new car inventory from the 2020 model year and saw a 20% decrease in sales in 2020. After it was redesigned in 2021, it took cues from the Palisade and continued to have demand for the 2020 version. When it came to Chrysler, the 300 and multiple Fiats ranked on the list of the most inventory. There are three fiat models as well as the Pacifica coming in at 38.7% inventory on the dealership floor. 

Dodge

Known as one of the most well-known American car makers, Dodge Charger saw a decrease in 2020 sales, and Challenger saw an uptick. The Challenger was one of the models most impacted by the pandemic for inventory shortages, but still, many 2020 options remain. 

Nissan

There are three Nissan vehicles that are sitting and waiting for you to purchase them. The Nissan Murano, known as a flagship Nissan along with the Sentra and Versa. The Nissan Murano sold 15% fewer vehicles in 2020 versus the previous year, but what is interesting is the Murano has not been redesigned since 2015. Similar to other vehicles, there are cashback deals for 2020 and 2021 cars, as well as leasing deals for the 2021 Sentras. This makes it less worth it to buy older models.

Honda

As one of the most reliable vehicles, honda is known for its long lasting cars. The Honda CR-V Hybrid and the non-hybrid version, along with the Honda Civic, are plentiful on dealership floors. The CR-V Hybrid was brand new in 2020, but because it was priced higher, the original model sold more than that of the hybrid version. Still, the original CR-V saw a 15% decrease in sales in 2020, and the Civic saw a 19% change. Now, the Toyota Camry Hybrid sits waiting with 34.8% inventory and even saw an increase in sales in 2020.

Outliers

The Volkswagen Jetta saw a 17% decrease in sales in 2020 because of the pandemic as well as competition with similar vehicles. Despite this, pickup trucks like the Ram 1500 Classic did not have this problem. This truck was not in as high of demand therefore there was not as much scarcity during the pandemic. Non-similarly enough, the BMW X5 offered a variety of options as it was the top-rated SUV in the popular midsize luxury SUV segment. Today you can get up to $6,000 off MSRP on a 2020 version.

Car Brands with the Highest Amount of Excess 2020 Inventory

Ther were also a variet of vehicles that had the highest number of excess 2020 vehicles in their new car inventory available. There are nine different brands with 2020 inventory levels above the 22.5% average for all vehicles on the market. For example, Ford has some of the highest remaining inventory from 2020. The often produce the most amount of vehicles, so this makes sense. 

Chrysler and Dodge came in after this due to their significant sales decline in 2020 compared to the year before. This was due to the reduction in the need to produce for rental car companies during the pandemic. 

The Chevy Envison had limited inventory in 2021, but above average for the Enclave and Encore models. Buick also had a surplus of 2020 model year vehicles, but Chevy was above average with the Silverado 1500 and Colorado pickup trucks. These have such low levels of 2020 inventory that it balanced out the extra 2020 models of Bolt EV and the Trax.

How to Choose a New 2020 Vehicle in 2021

When purchasing a new vehicle, you should look at the prices from the last two years. Both 2020 and 2021 models are available brand new, and this can prove effective in finding an incredible deal. There is also a huge amount of vehicles from 2020 that are continuing to sit on lots. The rental car companies do not want them, and some of the popularity of these vehicles are declining. 

Instead of waiting for a redesign, save money by purchasing a 2020 model. Even some of the 2021 vehicles are barley arriving to lots, meaning that when 2022 models begin to get pushed both of these years will become cheaper and the dealers will be desperate to sell. As new inventory comes in, your savings will only go up.