Amid tariffs, is Memorial Day weekend still a good time to buy a car?
We're just a few days away from what's usually considered a huge weekend for car sales. Dealerships often run promotions and offer incentives to clear out inventory. But with impending tariffs and low supply, should consumers wait?
Experts at Kelley Blue Book say you're not going to do yourself any favors by waiting until the end of summer. But it's also important to point out the ways in this current market to make a smart buy and not pay more than you need to pay.
Car prices are ticking up
Memorial Day weekend marks the unofficial start to summer and one of the best times to buy a car ... usually.
Brian Moody with Autotrader and Kelley Blue Book says prices for new cars continue to tick up.
"In fact, the jump in new car prices from March to April, I believe was the biggest jump since 2021. So it's up about 2.5%, which doesn't sound like a lot, but when you figure the price of a new car is $48,000-plus, that can be a significant amount," Moody said.
There's been an increase in demand for cars and people trying to beat the tariffs and buy from existing inventory. But Moody says some brands are making it easier for consumers to resist the rush to buy.
"Nissan lowered their price on two cars that are made here in the U.S. So not only did they not raise the price on some cars, they actually lowered the price on a couple of cars. Ford has been offering employee pricing and that's largely because, at least according to them, they build a majority of their cars in the U.S. already and they extended the deal until July 6," Moody said.
Fewer used cars are on the market
Moody also says we're seeing a shortage of used cars because so many automakers stopped production during the pandemic, meaning there are fewer cars in the market. That's why some used car dealerships are only guaranteeing pricing for one week.
"They know that the inventory is going to go down. The average listing price for a used car right now is about $25,000, and the mileage is a little bit over 70,000 miles. So that's a decent car right there in that," Moody said.
What to consider when buying a car
Moody wants consumers to research which car manufacturers build or assemble in the United States to avoid the tariffs, too.
And know that might have changed in recent years.
"The key things that are always in play here is, know your credit score, know what deals you qualify for and then go searching for deals of the month, low lease deals and anything that will help make your payment or your cash price a little bit lower," Moody said.
Moody also says a segment of used cars can really save people money. He suggests looking for 7-, 8- or 9-year-old luxury cars. Those luxury cars back then had standard features such as side airbags, traction control and stability control that may have been optional at the time. He says put in a backup camera for $800 and you have a modern car with the same safety features.
