Memorial Day Car Shopping: Edmunds Experts Advise on the Best Strategies for Deal-Seekers During New Car Shortages
SANTA MONICA, Calif., May 26, 2021 /PRNewswire/ -- Car shoppers should take the time to do extra research and consider alternative brands and purchasing options if they want to snag a better deal on a new vehicle this Memorial Day weekend. According to the car shopping experts at Edmunds, bargains are increasingly difficult to come by as the global chip shortage continues to severely constrain the supply of new vehicles and consumer demand runs high.
"...there are still some decent financing deals out there if you know where to look," - Ivan Drury, analyst, Edmunds
"Memorial Day historically has been an opportunity for dealers and automakers to kick off huge summer sell-down sales, but things are looking a lot different this year," said Jessica Caldwell, Edmunds' executive director of insights. "On top of the initial disappointment of fewer free hot dogs and doughnuts at the dealership this holiday weekend, shoppers are going to have to work a lot harder to find the vehicles that they want. They might need to compromise on features to find more affordable vehicles, or even consider more alternative purchasing options than they have in the past."
Edmunds experts note that car shoppers who are struggling to find affordable options in the new market this holiday weekend could benefit from leasing their next vehicle instead of financing a new purchase. Edmunds analysts have put together two lists: a list of the top vehicles to consider leasing instead of purchasing to achieve the greatest monthly savings and a list of the most affordable lease options on the market as of May. Both lists can be found below.
"If you can't find the truck or SUV of your dreams out there but still need to jump into a new vehicle, leasing is a great solution," said Ivan Drury, Edmunds' senior manager of insights. "You'll be able to find cheaper monthly payments, and since a lease is usually a much shorter commitment than a purchase, you can test the waters with a new brand or vehicle type that you might not have considered in the past. By the time you come back to the market, the inventory situation will be in a much better place."
Edmunds experts also note that consumers who are committed to purchasing their next vehicle instead of leasing could benefit the most from shopping around based on available financing. Edmunds analysts have put together a list of vehicles that commanded the lowest average annual percentage rates (APRs) as of May, which can be found below.
"Automakers and dealers aren't pushing out as many cash-based incentives right now, but there are still some decent financing deals out there if you know where to look," said Drury. "Although average APRs are somewhat reflective of the creditworthiness of the shoppers who bought them, these vehicles are being incentivized by automakers that are taking advantage of low corporate borrowing costs."
For more general tips on how to shop for a car on a holiday weekend, Edmunds experts have put together a helpful guide that can be found here.
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