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A Model-Year Change Starts Costing Before the Replacement Arrives

The old model does not wait for the new model to arrive before it starts ageing commercially. Once replacement details become credible—new styling, revised safety equipment, improved powertrain, additional technology or a changed price point—the market can begin to revalue the stock already sitting on the dealership floor. The accounting cost may remain unchanged. Customer perception does not. The market reprices expectations first This matters because inventory decisions are forward-looking....