If you drive around most car dealerships, it won’t be hard to spot new vehicles on the lot.
That’s because the auto industry is moving past its supply chain issues, making it easier to buy what you want at a reasonable price.
“Deals are coming back. The consumers are definitely buying new cars at the dealership level and we’re seeing incentives also coming back better than they were previously, year over year,” said Jim Sharifi, managing editor of the Autos team at U.S. News and World Report.
But high interest rates can take some of your buying power away. That’s where a great Labor Day deal can save you money.
“What we’re seeing is dealers are more able to work with you now on new car purchases than they were maybe a year or two years ago,” Sharifi said.
While you can get good Labor Day deals on new cars, Sharifi said, prices on other vehicles may cost more.
“We’re seeing a much higher demand for SUVs, trucks, larger vehicles and I think that that’s driving a lot of that price because people are looking to get a little bit more car for their money,” said Sharifi.
The holiday typically marks the start of the annual sell-down season, where carmakers and their dealers offer incentives to move the current year’s models, making room for new arrivals.
Most of the Labor Day car deals available this month are financing offers, which reduce the cost of interest on your car loan, and cash-back offers, which reduce the price of the car. Lease deals lower your monthly payments, the amount due at signing or both.
You’ll need an excellent credit score to qualify for most financing, lease and some cash-back offers.
Most deals come with strict terms and conditions and are only available to shoppers who live or buy in certain regions. It’s a good idea to verify any deals you’re pursuing with a local dealership to ensure they’re available in your area. All of these deals expire on Sept. 5.
