If you're planning to purchase a new car, the Memorial Day weekend might be the perfect time to do so. The holiday weekend is said to be bringing lucrative deals for car shoppers.
According to a report from USA Today, cars will likely carry the best deals instead of SUVs and pickups. Automakers have to adjust the prices of midsize and small cars, given that there's a weaker demand because gas prices for crossovers and pickups are way cheaper. Vehicle manufacturers must resort to several sales tactics so consumers will still buy cars.
Car Deals For Memorial Day Weekend
Some of the automakers offering good deals are Kia, Fiat Chrysler and Ford. Kia has a zero percent financing offer for up to 66 months, while Ford is offering zero percent financing and cash inducements on several models. Fiat Chrysler offers an additional $1,000 off a brand new Dodge Charger sedan, USA Today reported.
The 2016 Hyundai Elantra is being offered with zero percent financing for six years and a $1,750 cash back, according to CBS News. The car can also be leased for $169 per month for three years with a $1,399 signing due.
The Dodge Challenger has a 0.9 percent financing for three years with $2,000 cash back, while the 2016 Ford Escape is offered with zero percent interest for six years and $1,000 cash back.
The Chevrolet Traverse SUV is offered with zero percent interest for five years and a $500 Memorial Day bonus rebate. The 2016 RAM 1500 pickup has a $9,500 rebate, which is over 20 percent off the original price of $45,475. More Memorial Day deals are offered by Chevrolet, according to the automaker's website.
Experts also said more car deals and incentives will be offered over the summer, according to Jessica Caldwell, Edmunds.com's director of industry analysis. Placing incentives, or discounts, on cars give automakers earnings of around $3,034 per vehicle this May, which is a 7.1 increase from the same period last year.
Factors Behind Last-Minute Sales Boost
Autodealers said there are numerous factors why they are expecting sales boost during Memorial Day weekend. Economic factors like unemployment are low and consumer confidence is high this year compared to the previous ones. In April, retail earnings increased up to 1.3 percent, which is the biggest growth since March 2015.
Aging and worn out vehicles are also pushing people to buy newer cars. There's easier credit as well, a stark contrast from what occurred during the recession. Open automotive loans surged 11.1 percent during this year's first quarter, surpassing $1 trillion for the first time.
