As temperatures rise and summer vibes set in, it's not just family beach trips and neighborhood barbeques that draw our attention. Smart shoppers and good stewards alike await this time for one reason: car sales. The season brings enticing deals and discounts from dealerships to online platforms.
Here, we'll delve into the intricacies of getting the best bang for your buck during this period, backed by insights from reputable sources.
Why Summer is a Smart Time to Purchase
With the impending release of 2025 models (which often arrive in the fall), dealerships are eager to move the remaining 2024 inventory off their lots. This creates a favorable environment for buyers, as dealers may be more willing to negotiate on pricing and financing terms.
As dealerships make space, they often clear out the previous year's models, offering substantial discounts and incentives. Dealers, in turn, offer significant discounts on current-year models to accommodate incoming inventory.
According to Edmunds data, the average discount on outgoing model-year vehicles during clearance events can range from 10% to 20%. Savvy buyers can use these sales to secure great deals on vehicles.
But What About Post-Pandemic Shortages?
The years following the global pandemic 2020 were unfortunate times to purchase a vehicle. Chip shortages and lockdowns caused manufacturing delays, which resulted in a historically low inventory and an appreciation in vehicle values. Many people tightened their belts and held on to older vehicles out of necessity.
Fortunately, chip shortages are over, which should ease demand this summer. New inventory is expected to reach pre-pandemic norms, with almost 3 million units available.
Higher interest rates to combat inflation continue to make lending more expensive for buyers. But there’s good news on the horizon. While lending rates are currently higher than pre-pandemic, MarketWatch says rates should come down in 2024.
Smart Car Buying for the Faithful
As you navigate sales and clearances, here are tips for integrating your faith values with smart car buying:
- Set a Budget: Establish a budget based on your financial capacity and avoid overspending. Remember the principles of stewardship and prioritize financial prudence in your decision-making process.
- Consider Taxes and Lending: You could be eligible for up to $7500 in tax incentives for an electric or plug-in hybrid energy vehicle. Additionally, you can save significantly by locking in a low rate from a lender aligned with your values.
- Seek Expert Advice: Don't hesitate to seek guidance from financial advisors or representatives of Christian financial institutions. They can offer insights tailored to your financial situation and help you make informed decisions aligned with your faith and values.
Leverage Online Platforms and Price Comparison Tools
In today's digital age, the internet is a powerful ally for consumers seeking good car deals. Online platforms, including dealership websites and third-party marketplaces, showcase many options, transparent pricing, and incentives. Moreover, comparison tools empower buyers to effortlessly compare prices across multiple dealerships, ensuring the most competitive offer available.
Additional Tips to Maximize Savings
Approach negotiations confidently, leveraging your research and willingness to walk away if the deal doesn't meet your expectations.
While Memorial Day weekend is renowned for sales, don't hesitate to continue monitoring prices. Dealerships may introduce additional incentives in the fall to meet sales targets.
Don't overlook certified pre-owned vehicles, which often have warranties and undergo rigorous inspections.
Loans that Put You on a Better Road
Buying a vehicle during summer presents an exciting opportunity to find great deals on the right vehicle for you. By partnering with a Christian financial institution, your car loan can reflect your integrity, stewardship, and community support values.
Whether you just started shopping or want to refinance to a better rate on something you already purchased, AdelFi offers terms that work for you. Plus, we offer zero fees and make applying easy in just 10 minutes!
