Car shoppers can look forward to significant savings on new vehicles this Black Friday, according to the car shopping experts at Edmunds. Edmunds analysts note that a combination of lower interest rates and high inventory of outgoing model-year vehicles are contributing to bigger discounts this holiday weekend compared to previous years.
According to Edmunds data, the average annual percentage rate (APR) on a new vehicle was 5.7% in October of this year compared to 6.2% in 2018. Edmunds data also reveals that 26.7% of all vehicles sold in October of this year were 2020 model-year vehicles, compared to October of 2016, when 37.1% of all vehicles sold were 2017 model-year vehicles. Edmunds experts note that the slower model-year selldown means that shoppers will have a greater selection of clearance vehicles to choose from this holiday weekend compared to years past.
“Black Friday is historically one of the biggest car-shopping events of the year, but this year the holiday weekend is also hitting right at the end of November, which is creating a perfect storm of savings for new-car shoppers,” said Jeremy Acevedo, Edmunds’ senior manager of insights. “Automakers and dealers are going to be extremely motivated to clear out lingering 2019 model-year vehicles and hit their end-of-month sales goals, so shoppers can expect some great discounts.”
To help shoppers take advantage of Black Friday bargains, Edmunds created an insider guide on how shoppers can make the most of their time and money this holiday weekend:
- Do your research in advance. Check the dealership’s inventory online and have your vehicle picked out ahead of time. It might be a good idea to have an alternate in case the car you want is gone. Review ads carefully and try to get a few price quotes from dealerships in advance either by phone, text or email.
- Get your trade-in appraisal and shop for financing beforehand. If you have a trade-in, get it appraised early so you have a trade-in amount for comparison at the dealership on Black Friday weekend. If you’re planning on financing your vehicle, start shopping around to get preapproved for a car loan.
- Schedule your test drive before the holiday weekend. Salespeople will be busy on Black Friday weekend due to the holiday crowd. Make an appointment to drive on a weekday before Thanksgiving.
- Have all of your papers ready before you head to the dealership. Make sure you have all of your necessary documents in hand before you set foot in the dealership, including your driver’s license, insurance information and loan paperwork.
- Try to arrive at the dealership early. You’ll have a better selection to choose from, and salespeople will be less tied up with other shoppers. Some dealerships open as early as 6 a.m.