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While sales numbers for vehicles looked solid in August, things aren’t so rosy at second glance – and it could set up a very ugly September. Inventories of old models have built up over the past year, reaching new highs, and are now at a breaking point with the new 2020 model vehicles ready to be rolled out. If dealers want to make room on their lots, they’re going to have to start cutting prices and raising incentives further than they already have to make some room; a disastrous prospect for many dealerships as, for the first time since the Great Recession, the average US new car dealer operated at a financial loss in 2018.

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