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2022 guide to Memorial Day car sales Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our aim is to assist you make better financial decisions by offering you financial calculators and interactive tools that provide objective and original content, by enabling users to conduct studies and compare information for free – so that you can make financial decisions with confidence. Bankrate has partnerships with issuers, including but not limited to American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn Money The products that are featured on this website are provided by companies that compensate us. This compensation can affect the way and when products are featured on this site, including, for example, the sequence in which they be displayed within the listing categories and other categories, unless prohibited by law. This applies to our mortgage or home equity, and also other home loan products. But this compensation does not influence the information we publish, or the reviews you read on this site. We do not contain the vast array of companies or financial deals that could be accessible to you.


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3 minutes read. Published April 07, 2022

Writen by Rebecca Betterton Written 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 borrowing money to purchase the car they want.

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

Rhys has been writing and editing for Bankrate from late 2021. They are passionate about helping readers to take control of their finances through providing precise, well-researched and detailed information that breaks down otherwise complex topics into manageable bites.

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If you’ve flipped through channels lately you have likely been met with ads for Memorial Day sales at car dealerships. Even though Memorial Day weekend is known for the hefty discounts on cars but this year’s deal will take some extra consideration. The average used vehicle is around $28,000, and the average for a new vehicle is nearly $47,000 . However, this price, due in part to the fact that it’s a bit expensive, doesn’t mean the deal isn’t within the realm of possibility. Just be ready to make certain preparations prior to the time. The Memorial Day sales will be limited Historically, Memorial Day has been one of the best times to score a fantastic bargain on a car. But this year’s event will leave drivers with less luck in purchasing a vehicle. Inventory of vehicles is limited The market is still unable to catch up with the increasing demand from consumers. Dealers are selling vehicles in a lightning-fast pace due to the small quantity of vehicles available. There was a 1.5 million drop in March’s supply of vehicles in comparison to 2021. Since factories stopped production, the lack of semiconductor chips led directly to the loss of vehicles at the dealer. The shortage resulted in a period of greater demand and a shortage supply. When you shop this Memorial Day weekend, you are likely to be faced with fewer vehicles. Fewer incentives With fewer vehicles on the market, dealers are probably not feeling as much pressure to sell vehicles as they would in the in the past. With so many drivers in desperate need of automobiles, they’re less driven to offer incentives such as reward points or cashback. In the past the holiday weekend was filled with a variety of incentive options, however dealers won’t really need them to sell vehicles in 2022. J.D. Power reports that the incentives per unit are predicted to hit $1,044 — down from $3,334 just one year prior. Increased competition and lower vehicle inventory will also mean more people competing for the same car. The increased competition could make obtaining your dream car more difficult. Many buyers are willing to spend over the asking price to get the vehicle they want earlier than a rival will. This significantly alters the playing field, and gives dealers an advantage in pricing. The typical price of a used vehicle is selling at around 28 percent higher than it was at this point last year. In addition, with the finding that the majority of customers will pay more than the price of the vehicle, you’re likely to encounter a fair amount of competition. How to get the best bargain, despite your limitations intend to drive away with a new vehicle following the upcoming Memorial Day weekend, there are a few tips to follow to secure the best deal — even if there are fewer cars in the lot. Test drive before the weekend The best way to reduce time and make sure you’re at the dealership prior to your competitors is to test drive ahead of time. This way you can go in with a plan to buy rather than feeling under pressure to buy for a car that you’re not completely sold on. To schedule an initial test drive, look up the cars on the internet and contact your dealer to schedule an appointment in advance. Explore other ZIP codes Although the pandemic led to difficulties with supply of vehicles, it also hastened the change . Make the most of this opportunity to determine whether there are cars available in areas outside of yours. Buying a car online is an identical process of a physical purchase, and you may save more money in the process. In addition, some locations offer better prices, it might be worth your while visiting a nearby location to locate your next car. Consider a variety of options when it comes to your vehicle choice With fewer vehicles lining showrooms, it could be the perfect opportunity to explore your options in terms of the car’s model, size and design. Many drivers are at a certain type or make, so flexibility could mean getting the vehicle you want, but not everyone else. Take a look at the most reliable models when shopping. What next steps should you take when buying a car is a large financial decision. When you’ve considered the possible changes to this year’s Memorial Day weekend, determine if it’s worth the price and effort. If you are not actually saving money by buying during this Memorial Day weekend, and you can afford to wait waiting for the right time, then being patient might be the better option. Consider sitting out the huge holiday shopping rush and wait for additional vehicle inventory to become available. You may be met with shorter lines, more options and potentially lower prices.


Authored 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 taking out loans to purchase the car they want.

Edited by Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate from late 2021. They are passionate about helping readers gain the confidence to take control of their finances by providing clear, well-researched facts that break down otherwise complicated topics into bite-sized pieces.

Auto loans editor

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