2024 guide to Memorial Day car sales
Key takeaways
- Shoppers are likely to find discounts this holiday weekend as many dealerships are looking to sell off 2023 model year vehicles.
- To get the best vehicle deal, with or without holiday discounts, you must compare auto loan rates to find the right financing option for your needs.
- Memorial Day vehicle sales tend to start in the week leading up to the holiday. This year, that will be from May 20 until the holiday on May 27.
If you have turned on your TV lately, you’ve likely seen ads for Memorial Day sales at car dealerships. The holiday weekend can be a great time to buy a new or used car.
Edmunds experts share that after years of less-than-enticing deals, drivers can head to dealerships and have better luck in an otherwise challenging market. You are especially likely to find deals for vehicles from the 2023 model year, as many still crowd dealership lots.
Domestic vehicle brands are offering the best deals
Last Memorial Day, drivers were met with high costs due to steep inflation and remaining supply chain issues. And while high rates remain the norm — 7.18 percent for new cars and nearly 12 percent for used, according to Experian — you can still find deals.
This is especially true for domestic brands. Data from Edmunds analysts found that Detroit automakers have the largest number of vehicles on their lots, which can mean the most discounts for shoppers. Three brands top the list with the highest number of vehicles from the 2023 model year: Dodge, Buick and Chrysler.
| Make | Share of 2023 model year vehicles | Average discount for 2023 vehicles (difference between average MSRP and average dealer listing price) |
|---|---|---|
| Dodge | 52.6% | $6,753 |
| Chrysler | 38.4% | $6,252 |
| Buick | 17.6% | $4,256 |
Source: Edmunds
According to Caldwell, this discount trend reveals higher interest rates’ impacts.
“For dealers and automakers, the trend serves as a moment of caution surrounding the old habits of overproduction and inventory glut,” she says.
Even with potential deals for models from last year, Ivan Drury, Edmunds’ director of insights, understands that a slightly older vehicle is not suitable for everyone. The right vehicle for your needs is chosen not just due to discounts but rather because it fits your lifestyle and your budget.
“Consumers who prefer to swap their vehicles every few years may want to look elsewhere as these new outgoing models experience heavier immediate depreciation compared to new vehicles from the current model year,” he recommends.
How to get the best deal this Memorial Day
If you are set on driving away with a new set of wheels following the upcoming Memorial Day weekend, there are a few tips you can follow to get the best deal.
Test drive before the weekend
One way to save time and ensure you’re in and out of the dealership before the competition is to test drive ahead of time. This way, you can walk in ready to buy rather than feel pressured to sign a deal on a car you aren’t completely sold on. To arrange for a test drive, research cars online, then contact your dealer to arrange an appointment in advance.
Shop outside your ZIP code
Although the pandemic led to vehicle supply challenges, it also hastened the shift toward online buying. Take advantage of this new opportunity to see if there are vehicles available outside of your area.
Buying a car online is a similar process to that of an in-person purchase, and you might save some extra cash along the way. And with some areas offering better prices, it might be worthwhile to travel to a city with more affordable prices to find your next vehicle.
Be flexible with your vehicle choice
With fewer vehicles lining dealership lots, now could be a great time to expand your horizon when it comes to vehicle model, size and style. Most drivers tend to be narrowly focused on a particular make or model, so flexibility could mean getting a vehicle while others don’t. Consider checking out Bankrate’s 2024 winners for the most reliable vehicles when shopping.
Negotiate the best price
With higher costs expected, it is smart to brush up on your negotiating skills before heading to the dealership lot. Confidence is key to getting the best deal. Check out tools like the ones offered by Edmunds and Kelley Blue book that present fair market prices.
Using that info, you can come in prepared with the amount you are willing to spend and the price for other comparable vehicles.
Next steps
Purchasing a vehicle is a major financial decision. This could be the year if you have been waiting to set out to the dealership until prices settle down. But rates remain high, and the key to getting a good deal comes down to comparing auto loan rates and securing an affordable monthly payment.
