Memorial Day Car Sales: What You Need to Know in 2022

If you’ve been flipping through channels recently, you’ve probably come across ads for Memorial Day discounts at car dealerships. And while Memorial Day weekend is known for its hefty car discounts, this year’s discount will get some extra attention.

The average used car is about $ 28,000 and the average for a new car is even higher near $ 47,000, according to the Kelley Blue Book. But this high cost of the vehicle is partly due ongoing supply chain issuesdoes not mean that an agreement is not possible – just be prepared to make some preparations in advance.

This year’s Memorial Day discounts will be limited

Historically, Memorial Day has been one of the best times to find a great car offer. But this year will probably leave drivers with less luck when it comes to making a purchase.

Limited stock of vehicles

The industry is still unable to meet consumer demand. Dealers sell vehicles at lightning speed due to the small number of vehicles available. Cox Automotive Reviews 1.5 million reduction in vehicle supply in March compared to 2021.

As factories stopped production, the lack of semiconductor chips immediately led to fewer vehicles in the dealership. This shortage created an era of growing demand and low supply. And when you shop this Memorial Day weekend, you will probably still experience less vehicle availability.

Less motivation

With fewer vehicles available, dealers probably do not feel as pressured to sell vehicles as they would in previous years. With so many drivers desperate for cars, they do not have the same motivation to offer incentives as cash back or rewards.

In previous years, this holiday weekend was full of different incentive options, but dealers will not really need them to sell vehicles in 2022. JD Power notes in his forecast for 2022 this incentive cost per unit is expected to reach $ 1,044 – down from $ 3,334 just a year ago.

More competition

Less supply of vehicles also means that more drivers compete for the same vehicle. This increased competition is likely to make your dream vehicle more challenging. Many buyers are willing to spend more than the asking price to get the vehicle they want before another driver does it.

This significantly changes the playing field and gives the dealers the upper hand in terms of pricing. The average price of a used vehicle sold for about 28 percent higher than this period last year. And with a Cox Automotive Research 2021 finding that 42 percent of buyers are willing to pay through MSRP is almost guaranteed to face stiff competition.

How to get the best deal despite the restrictions

If you’re ready to leave with a new set of wheels after the upcoming Memorial Day weekend, there are some tips you can follow to get the best deal – even with fewer vehicles available in the lot.

Test drive before the weekend

One way to save time and make sure you get in and out of the dealership before the competition is to test drive ahead of time. This way you can get ready to buy instead of being forced to sign a deal for a car that you have not completely sold. To arrange a test drive, search for cars online, and then contact your dealer to arrange an appointment in advance.

Purchase outside of your zip code

Although the pandemic has led to vehicle supply challenges, it has also accelerated the turnaround. to e-shopping. Take advantage of this new opportunity to see if vehicles are available outside your area.

Buying a car online is a similar process to buying a personal car and can save you extra cash along the way. And with some areas offering better prices, it might be worthwhile to travel to one city ​​with more affordable prices to find your next vehicle.

Be flexible in choosing your vehicle

With fewer vehicles covering dealership lots, now could be a great time to broaden your horizons in terms of vehicle model, size and style. Most drivers tend to focus narrowly on a particular make or model, so flexibility could mean owning a vehicle while others do not. Consider checking out The winners of Bankrate 2022 for the most reliable vehicles when shopping.

Next steps

Buying a vehicle is a big financial decision. After considering the changes to this year’s holiday weekend, decide if it’s really worth the effort and effort. If you do not really save money by buying this Memorial Day weekend and you can afford it, patience may be the best bet. Consider stopping the holiday shopping spree and instead expect more stock to become available. You may come across smaller lines, more options and potentially better prices.

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