3 min read

How to Navigate 2025 Model Year Changeover

How to Navigate 2025 Model Year Changeover

It’s that time of year again: car dealership lots are a juggling act between outgoing inventory and shiny new arrivals, and dealers are tasked with moving metal while managing margin. The traditional playbook—discount the previous model year then pivot to full-sticker enthusiasm for the next—is under strain in today’s pricing-sensitive market. With shoppers increasingly informed and inventory still tighter than historical norms, the annual model year changeover comes with less wiggle room and more financial whiplash.  

What makes MYCO season particularly challenging is that not all OEMs roll out their new inventory at the same time, and the market dynamics of sell-downs and ramp-ups are affected by the varying timetables. 

Some manufacturers begin their MYCO as early as June or July. Others don't start until September or October. And a few lag even further behind, still selling previous model year inventory well into the fall when competitors have already transitioned to newer, higher-priced models. 

This timing disparity creates distinct strategic situations depending on whether you're early, late, or somewhere in between. Let's look at the full-size truck segment to see how this plays out in real time. 

What Happens When Competitors Transition at Different Speeds: A Truck Market Analysis 

The full-size truck market offers a perfect illustration of these MYCO dynamics in action. 

Take a snapshot of where major manufacturers stood recently: GM and RAM have largely completed their model year transitions. Their inventory is predominantly 2026 models, with 2025s mostly sold down. The crossover—where 2026 inventory surpassed 2025 inventory—happened back in August/September for these manufacturers. 

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Meanwhile, Ford hadn't even started their MYCO yet. 
As of early October, their inventory consisted entirely of 2025 F-150s, with no 2026 models on dealer lots.

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If You're Already Selling New Model Year: Two Battles at Once 

If you're a dealer representing a manufacturer that's deep into their MYCO, you're juggling two competing objectives: 

1. The Internal Balancing Act 
You still have some 2025 inventory to move, and you need to discount it to make it attractive against the newer 2026 models—both your own and your competitors'. But simultaneously, you're trying to sell 2026s at higher price points. 

2. Competing Against Discounted Inventory When You're at Premium Prices 
While you're trying to sell new 2026 models at premium prices, your competitors who haven't started their MYCO yet are aggressively discounting their 2025 inventory. 

In our truck example, GM and RAM dealers are positioning 2026 trucks at price points that are higher than where 2025s were priced. Meanwhile, Ford can offer significant incentives on 2025 F-150s to capture price-sensitive shoppers—shoppers who might otherwise have considered your discounted 2025 inventory before it sold down. 

How to Win at Any Stage of MYCO 

Being late to a MYCO isn't necessarily a disadvantage; it's just a different playbook. Success comes down to how well you understand your position and respond to what competitors are doing. That's where MarketAI comes into play. 

Real-Time Visibility Into the Entire MYCO Landscape 
MarketAI provides OEMs and dealers with real-time intelligence across the competitive landscape: 

Track Competitive MYCO Progress  
See exactly where competitors are in their model year transitions. Are they just starting their sell-down? Halfway through? Nearly complete? MarketAI shows you inventory composition by model year across your competitive set, so you know whether you're leading, following, or in sync with the market. 

Monitor Inventory Levels and Turn Rates  
Understanding how quickly competitors are moving inventory—and at what price points—gives you critical context for your own strategy. If a competitor is sitting on large volumes of previous model year inventory late in the season, that signals potential aggressive discounting ahead. If they're moving through new model year inventory faster than expected, that indicates strong demand at premium prices. 

Identify Pricing Opportunities and Threats  
MarketAI reveals pricing dynamics across your segment in real time. Are competitors maintaining price discipline on new model year vehicles, or are they already discounting? When do aggressive incentives typically start? This intelligence helps you time your own pricing strategies and promotional windows more effectively. 

Spot Warning Flags Early  
Late to transition like Ford? MarketAI can help you understand how much runway you have before you need to flip to new model year inventory. Already transitioned like Chevy or RAM? Get advance warning when competitors are about to launch aggressive sell-down campaigns that could pull price-sensitive buyers away from your premium-priced new inventory. 

Make Strategic Decisions Based on Market Reality 

MYCO season doesn't happen on a single timeline, and understanding your competitive position is half the battle. Whether you're deep into your transition or just getting started, MarketAI gives you the real-time market intelligence you need to adapt, respond, and win. 

Ready to see exactly where you stand against your competition during MYCO season? Request a demo of MarketAI to get real-time visibility into competitive inventory levels, pricing strategies, and market dynamics that can transform how you navigate model year changeover. 

 

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