Red, White & Vroom: Americans Up for a New Car This July 4 Holiday
Typically, the best time to buy a new car, or a used car from a licensed dealer, isn’t the July 4 holiday.
The best months to buy a new vehicle is in October, November, and December, as auto manufacturers release their newest vehicles and as dealerships need to clear last year’s models off the lot, and will offer good discounts to make that happen.
That doesn’t mean you can’t get a good deal on a new car, truck or SUV during the upcoming July 4 holiday weekend - especially in 2020. With interest rates low (the average interest rate on an auto loan stands at 4.30% for a 48-month-term loan right now – that’s more than a full point lower than the same period in 2019), it’s a good time to buy a new set of wheels.
Apparently, a robust number of Americans agree.
According to Cars.com, 44% of so-called “in-market buyers”, (i.e., buyers who have done their research and are ready to buy a new vehicle), are planning to grab some new wheels this weekend.
“Of those ready to buy, top reasons include wanting something new/newer (52%) and the deals are too good to pass up (42%),” the company states.
Interestingly, Cars.com cites a continued trend due to COVID-19 concerns where approximately 20% of Americans are buying because they no longer want to take public transit or ride-sharing services.
Cars.com also reports that current events are pushing their auto purchases up this summer, and July 4 seems like something of a sweet spot, time-wise, to make that purchase.
“Our data continues to indicate that COVID-19 has sped up shoppers’ car purchasing timelines for a myriad of reasons, and now we’re learning that the majority of those planning to buy this weekend say they will buy a domestic-made vehicle,” says Kelsey Mays, senior consumer affairs and vehicle evaluations editor at Cards.com. “During times of crisis, it’s not surprising to see Americans want to make purchases that directly impact our country’s economy — either by buying American-made or by supporting local small businesses. And when shoppers visit their local dealership, that makes an impact on the community.”
Supporting that sentiment is that 66% of shoppers who plan to buy a car this weekend say they will buy a domestic vehicle, the company adds.
Vehicles to Target
To make that auto buying decision easier to make, Cars.com offers a few good deals in play for buyers this week. Here’s a closer look at the company’s top deals:
Ford Ranger: Assembled in Wayne, Mich., and No. 1 on Cards.com's 2020 index, shoppers can score this mid-size truck with a $1,000 factory discount on all trims, saving around 2-4%. Qualified shoppers can find discount financing either at 0% for 60 months or 6.9% for 84 months. Price after discounts ranges from $24,605-$47,710.
Jeep Cherokee. Coming in at No. 2 on the list and assembled in Belvidere, Ill., this popular SUV boasts a factory discount of $2,500 on all trim levels, saving around 5-9% on the total cost. If purchased before June 30, Jeep is offering additional savings as great as $1,250 off if financing through Jeep’s parent company, Fiat Chrysler Automobiles. If purchasing after, FCA is financing 0% for 36 months for qualifying buyers. Price after discounts range from $24,835-$44,530.
Honda Odyssey, Ridgeline and Passport. Ranking numbers five, six, and seven on the 2020 AMI, Honda rarely offers factory discounts or cash-back offers. Cashback may not be common, but shoppers can take advantage of discount financing options.
Creditworthy shoppers can get 0.9% for up to 60 months or 1.9% for up to 72 months on the Odyssey; for the Ridgeline and Passport, select buyers can get 1.9% for up to 60 months or 2.9% for up to 72 months. If shoppers currently own a model-year 2010 Honda or newer, the automaker is offering $1,000 off all trims of the Odyssey with no trade-in required. All offers expire July 6th, Cars.com reports.
Chevrolet Colorado. Coming in at No. 10 and assembled in Wentzville, Mo., this mid-size pickup truck is available now through June 30 for $3,000 off all trim levels except the base trim, giving consumers an approximately 5-12% savings rate.
To learn more about the current car-buying climate, check out Cars.com’s 2020 American Made Index.