Are your engines revved up for the long Memorial Day weekend – the official green flag for summer and that celebratory moment when car dealers unleash a blitz of glittery ads to lure us into their showrooms?

Here’s the Real Deal with Memorial Day Car Sales

Listen, folks – Memorial Day car sales are eye-catching, aren’t they? But let’s cut to the chase: are these sales genuinely offering top value? Occasionally, manufacturers might loosen their purse strings a bit more on financing for the holiday, but most of these events are, well, more show than dough.

Pat Ryan, CEO of the car buying app CoPilot, puts it like this, “Generally speaking, holidays are mostly a whip-cracking catalyst for dealers, any ‘big savings’ you see are more mirage than material.”

But hey, don’t let me rain on your Memorial Day parade. Buying a car around this time can actually be a rather nifty choice, provided you know the score. Let’s dig in, shall we?

Why Memorial Day Could Be Your Lucky Day

Look, it’s sort of like shopping after Christmas. The last few days of any month generally see dealerships going all out to hit sales quotas. This explains why Memorial Day became a popular tryst point for car shopping. Unlike Independence Day, a later summer holiday that doesn’t align as well with these end-of-month shenanigans.

Ryan breaks it down, “If I had to pick between July 4 and June 30, my money’s on June 30. You see, most dealers are chomping at the bit to end their month on a high note.”

And if your calendar aligns with the end of June, well, you’ve hit a potential sweet spot. It’s the end of Q2—an important line in the sand for those carmakers aiming to meet quarterly sales targets.

So if you’re planning to snag a car this summer, buckle up, because I’ve got just the strategies to help you unlock those vaults of big savings.

Let’s Talk New Car Incentive Programs

Manufacturers are clearly in a generous mood at the moment, rolling out a buffet of attractive new car incentives. Pause for a second and think back to those dull days of direr supply chain disruptions we suffered through some four years ago. Feeling a bit better now, eh?

Top dog at Cars.com, Jenni Newman, gives us the inside scoop: “The new car market is churning out more irresistible incentives in comparison to the used vehicle segment.”

Fact is, some auto brands are now swimming in excess inventory – warehouse heaps that dealers are desperate to trim down. And to give those stagnant vehicles a good kick off the lots, manufacturers are forking out hefty cash-back deals and low-interest financing.

Imagine a bundle of amusement like up to $8,000 cash back on a 2023 Chevy Silverado or maybe a 0% APR for 60 months on the electric Hyundai Ioniq 5? Sounds tempting, right? Brands under the Stellantis family—think Chrysler, Jeep, Dodge, and Ram—are also giving the green light for deals, thanks to their bulging inventory.

Stat time: Cars.com reports that nationwide new car inventory is lounging at around 2.23 million units. That’s a 35% increase over last year. Why? Softer demand as higher prices and interest rates have started to scare away the ghosts of past car buyers.

This surfeit of supply suggests that summer sunbathers – I mean, shoppers – are likely to locate their preferred models nearby. And surprisingly, most will pay below the list price. Now that’s a paradigm shift from last year, when buyers were free diving into their deep pockets spending thousands above MSRP.

Newman imparts some sage advice: “Modern car buyers, just relax, kick that stress to the curb. The market’s refreshed inventory brings back that warm fuzzy feeling of confidence and breathing space to the whole process.”

Now that the market is getting its groove back, there’s no need to rush into a new car purchase. Playing the waiting game until the slower-paced fall or winter months might turn the tide for even bigger deals.

With dealerships threatened to be swamped by unsold stock, they might be forced to beef up those incentives. And hey, if Santa at the Federal Reserve decides to gift us with lower interest rates later this year, car loan rates could become quite the stocking stuffer for buyers.

Here’s the Inside Scoop on Less Popular Vehicles

Don’t get me wrong, hybrids and vehicles from Toyota, Honda, and Subaru are still the popular kids on the block. So don’t hold your breath for staggering Memorial Day discounts on these darlings.

Still, Ryan fills us in. “If you can sit tight until the fall or winter, when the auto market starts decelerating, you might strike gold with improved deals on hybrids and hot-ticket brands. But for most buyers, the current market climate is rather refreshing.”

Unless of course, you’re open to some of the less glamourous makes and models on offer. C’mon, who doesn’t like an underdog, right? RealCarTips.com has identified more than a couple dozen vehicles with 0% APR financing, and a similar number are being let go with rebates of $5,000 or more.

Ryan gallantly reveals that “Cash-back incentives are spreading like wildfire. Expect this trend to whip up more heat as the year forges ahead.”

Remember, though, these mouth-watering financing incentives are usually reserved for customers with unblemished credit. So if your credit score is looking a bit bruised, you might want to nurse it back to health before jumping into the financing arena.

If you can be a bit flexible with the makes and models, you’ll see that car payment tumble into a more cozy zone—even with the average new vehicle price hitting around $49,000, there are plenty of budget-friendly alternatives up for grabs.

According to a recent report from Cars.com, we’ve got some best-value vehicles, like the Kia Forte LXS (just over $20,000 whoa!), the Nissan Kicks subcompact SUV (a smidge over $22,000), and the Ford Maverick pickup (a modest $27,000).

On the electric vehicle front, Newman dishes the goods on the Hyundai Ioniq 6, offering strong value at almost $40,000. And thanks to EV prices dropping significantly over the past year and inventories on the rise, you can power up without short-circuiting your bank account. And don’t forget, if you cross all your Ts and dot your Is, the federal EV tax credit can help you drive away with up to $7,500 shaved off the sticker price.

Strategies for Smart Shopping and Negotiation

Remember the hungry, hustling market of the pandemic era when supply shortages forced buyers to buckle down or bail out? Well, erase that from your memory, folks – the tide’s turning again favorably towards the buyer.

So, play the field and shop around, stack up price quotes from different dealers, and engage in a bit of hardball negotiation before committing. Plus, many dealerships are happy to entertain price chats remotely, saving you the trouble of reporting in person.

“They’ll spit a price at you which you can conveniently counter-check with another dealership’s offer for the same model,” Newman suggests. “This gives you a bird’s eye view of your choices and who’s down to negotiate.”

Trust me, putting in that extra grunt work could see you reaping major savings—potentially shaving off hundreds, if not thousands of dollars.

If you find negotiations grinding to a halt with a dealership, Newman advises to take five and perhaps come back later. The tide might have turned by then, swinging a bit more in your favor.

“We’re back in the driver’s seat, negotiating for your next ride,” she asserts. “Inventory is healthy, pandemic red tapes are in the rearview mirror, and traditional car buying antics are back on the open road.”