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2022 guide to Memorial Day car sales Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with financial calculators and interactive tools, publishing original and objective content. We also allow users to conduct research and analyze information for no cost to help you make informed financial decisions. Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn Profit The offers that appear on this site are from companies that pay us. This compensation could affect how and where products appear on this website, for example for instance, the sequence in which they be listed within the categories of listing and other categories, unless prohibited by law. Our mortgage or home equity, and also other home loan products. However, this compensation will have no impact on the information we publish, or the reviews you read on this site. We do not contain the entire universe of businesses or financial offers that may be accessible to you.


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3 min read Published April 07, 2022

Writen by Rebecca Betterton Written by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She is a specialist in helping readers in navigating the details of using loans to buy an automobile.

Edited by Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate since the end of 2021. They are passionate about helping readers gain the confidence to take control of their finances by providing clear, well-researched information that breaks down otherwise complex subjects into digestible pieces.

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If you’ve flipped through channels lately you have probably seen ads for Memorial Day sales at car dealerships. While Memorial Day weekend is known for the hefty discounts on cars, this year’s sale requires a bit more thought. The median used car is around $28,000, and the median price for a brand new car is even higher at nearly $47,000 . But this high vehicle cost is due to , doesn’t mean that a deal is out of reach . You just need to be prepared to make certain preparations prior to the time. This year’s Memorial Day sales will be limited Historically, Memorial Day has been one of the most ideal times to find a great car deal. But this year’s event will leave drivers with less luck in making a purchase. A limited inventory of vehicles The market is still unable to keep up with demands of the consumer. Dealers are selling cars at lightning speed due to the low number of available vehicles. a 1.5 million decline in March’s supply of vehicles as compared to 2021. Since factories stopped production, the lack of semiconductor chips led to the loss of vehicles in the dealership. This led to a period of increased need and low supply. If you are shopping this Memorial Day weekend, you will likely be met by fewer options for vehicles. Fewer incentives With fewer vehicles available, dealers are likely not feeling as much pressure to sell cars as they would in the in the past. With so many drivers looking for automobiles, they’re less motivated to offer incentives like cash back or rewards. In previous years, this holiday weekend was filled with a variety of incentives, but dealers will not really require them to sell vehicles in 2022. J.D. Power notes in that incentive spending per unit is anticipated to reach $1,044 -which is down from $3,334 one year ago. A lower supply of vehicles is also a sign that more drivers are competing for the same car. This increased competition will likely result in obtaining the dream car more of a challenge. A lot of buyers are willing to pay more than the advertised price to get the vehicle they want earlier than a rival will. This significantly alters the playing field, and gives dealers an upper hand in pricing. The average price for a used vehicle is selling for around 28 percent higher than it was at this point the year before. And with a finding that the majority of customers are willing to pay more than the MSRP, you’re bound to encounter a fair amount of competition. How can you get the best bargain despite the limitations are set on driving away with a brand new set of wheels following the forthcoming Memorial Day weekend, there are a few tips you can use to ensure that you get the most value for money even with less vehicles on the lot. Take a test drive prior the weekend. One way to save time and ensure you’re getting to and from the dealership prior to your competition is to test drive ahead of time. So you can walk in ready to buy rather than feel under pressure to buy for a car that you’re not entirely convinced of. For an initial test drive, look up the cars on the internet and contact your dealer to schedule an appointment in advance. Find a car outside of your ZIP code While the pandemic caused vehicle supply challenges however, it also increased the change . Use this latest opportunity to determine whether there are cars available outside your region. Buying a car online is a similar process to that of a physical purchase, and you may save more money in the process. In addition, some locations offer lower prices, it could be worth your while visiting a nearby location to locate your next car. Make sure you are flexible in your car choice . With fewer vehicles on showrooms, it could be a great opportunity to broaden your horizons in terms of the car’s model, size and design. Many drivers are only focused on one particular brand or model, and therefore, being flexible could mean you purchase an automobile that others do not. Look into the most reliable vehicles in your search. The next step to consider is buying a car. is a major financial investment. When you’ve considered the possible changes for this year’s Memorial Day weekend, consider if the car is worth the money and effort. If you are not actually saving money by buying this Memorial Day weekend, and you can afford to wait waiting for the right time, then being patient might be a better bet. Take a break from the holiday shopping surge and wait for additional vehicle inventory to become accessible. You may be met with shorter lines with more options, and possibly better prices.


Authored by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers to navigate the ways and pitfalls of taking out loans to purchase the car they want.

The edit was done by Rhys Subitch Edited by Auto loans editor

Rhys has been editing and writing for Bankrate from late 2021. They are passionate about helping readers gain confidence to control their finances through providing concise, well-studied information that breaks down complex topics into manageable bites.

Auto loans editor

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