Historically, Memorial Day offers one of the biggest car sales of the year. The extended weekend has seen more time for consumers to browse a lot, with many dealers trying to clear stocks to make way for next year’s models. These sales are primarily focused on financing and leasing new cars, but second-hand buyers can also find sales and special incentives at local dealers.
However, the sale of cars for 2025 anniversary is different from the past. Consumers have been battling low vehicle inventory, economic uncertainty and historically high car prices since the Covid-19 pandemic. Currently, inflation and tariffs make stock and pricing even more complicated.
That being said, if you’re in the market for new vehicles, there are still some good opportunities.
What will Memorial Daycars look like in 2025?
Auto sales rose in April after the full scope of the Trump administration’s tariff plans were announced in March. Industry experts primarily attribute this to further increase in car prices (already record highs) in a hurry to buy them.
Traditionally, it was a very good weekend, but this year is completely different due to customs issues. It’s still a good time to buy, but that’s because these cars are likely to be the most affordable ever. So, if you plan on buying a car before the next six months anniversary, I think any time is a good time.
– David Thomas, Director of Content Marketing and Automotive Industry Analyst at CDK
According to Cox Automotive data, the Rush To Buy has fallen 23% since March, with a depleted dealer stock. Cox’s chief economist Jonathan Smoke said there are currently fewer than 2.6 million vehicles in the dealer lot. Consumers expect consumers to purchase pre-duty inventory and will shrink further as foreign cars are imported slower.
As a result, buyers face more limited choices than most, and many manufacturers are hesitant to cut down large transactions on the eve of tariffs. Some people are still deciding how much these increases in costs can be absorbed, and how much they can be handed over to consumers struggling with costs. This is not a buyer’s market, nor is it a seller’s market.
Notable anniversary incentives
While sales for the 2025 anniversary may not be as impressive as they were a few years ago, there are a few offers that stand out. Currently, the most competitive discounts are provided by manufacturers with more vehicle inventory.
How to make the most of your memorial daycar sales
Car sales save you the most money when you know how to work them. Below are some strategies to get the most out of this Memorial Day sale.
Memorial Day sales can be a good time to buy a car if it’s right for you. The worst thing you can do is jump to a sale that appears to be great, even if you’re not completely financially prepared for your decision. If the car you want receives an additional discount, go for it! But don’t enter the market just because you see an exciting anniversary deal.
– Russell Wojcik, automotive journalist
Know your credit score
Thomas suggests that borrowers need to check their credits before heading to the lot of cars. Regarding the increased credit denial, he said: “It was not good to be a point blank. Credit access and credit denials are some of the best points in recent years.”
This is because the automotive industry is facing an affordable price crisis. People in all credit tiers have an average car loan rate rising. Also, if your credit is below 600, you will have a hard time qualifying for many Memorial Day sales. Despite the potential for a tariff increase, it may be better to wait and work to improve your credit score to take advantage of Labor Day car sales instead.
Apply for pre-approval
Ideally, you should arrive at the dealership with fundraising. This gives you more negotiation power. If the dealer wants to handle your funding, they will need to beat any offers you already have. This will help you get even better rates, especially on Memorial Day sales. Wojcik explains that arriving at a prepared dealer is the heart of getting a bargain.
“Memorial Day is also a busy time with heavy traffic where demand (the lot customer) may be fairly high, which may mean that (the sales team) will have less time to work with you.
That’s not to say you should accept mediocre offers for fear of missing out. Always run the numbers through your car loan calculator to ensure that your offer meets your needs. However, if you prepare in advance, the wheels that enter the new set of wheels will oil.
“If numbers don’t make sense, prepare your research, bottom dollars, fundraising, and the ability to walk away,” advises Wojcik.
Home in April
It’s attractive to focus on monthly payments when shopping for your car, but don’t ignore the annual loan rate (APR). This includes interest and loan fees paid on a one-year loan. Therefore, APR will provide you with more accurate photos of whether your loan will actually cost you.
With regard to Memorial Day sales, we will determine whether the total cost of low APR or cashback transactions is low. Both are becoming rare, but there are a few if you have a credit score to qualify.
A 0% APR offer will result in smaller monthly payments, resulting in faster rewards. If you have a large down payment, this may be a good option. If your down payment is small, you may be better off receiving a cashback offer as the rebate can be applied to the down payment.
Consider raising dealer funds
When it comes to Memorial Day sales, you may need to choose to raise funds from the manufacturer or dealer.
“Some dealers may be trying to move as much inventory as possible before any further impact occurs, and that can be played with your favor,” says Wojcik. In fact, many American manufacturers have exploited their advantages by providing employee funding and stacked incentives to customers considering purchasing before tariffs arise.
The best dealer finance opportunities are usually reserved for borrowers with excellent credit. However, at this point, it appears that dealers are expanding these opportunities to more customers than usual. Whether you make a massive down payment or make valuable trade-in offers, you can still qualify for dealer fundraising, even in a more regular market.
Pay the down payment
A down payment reduces the amount you have to borrow to buy a car. It also reduces the risk to lenders and often lowers APR. The benefits of down payments include reducing monthly payments and providing more shares at the start of the loan.
Paying a large down payment will qualify for better discounts and incentives, especially if you don’t have the best credit. Overall, a 10-20% reduction in your car is a necessary method to prevent car loans from being upside down, especially if you’re stacking it on other Memorial Day offers.
Take advantage of trade-in
Whether your current car is old or more miles or more than you want, there may be more trade-in value than you notice.
“In 2021 and 2022, they couldn’t build as many cars as they wanted to build,” explains Sean Tucker, editor of Kelley Blue Book. “There are around 8 million cars that don’t exist due to Covid and we won’t be able to reach the used car market.”
As a result, second-hand cars retain their value abnormally well. Previously, three years were the golden age of used cars, but older cars are selling well.
“The biggest savings buyers have is their trade-in,” says Thomas. “Your trade-in is much more valuable than a month or two ago. So we focus on that trade-in value. Dealers want your car.”
Do not pay additional fees or dealer add-ons
If you choose to raise money from a dealer, ask for a list of fees related to your loan. Many dealer fees are not required and are exempt if you ask. The exemption fee is a small loss for the dealer, but it can mean savings of hundreds of dollars over the life of your car loan. If your dealer doesn’t want to upset other aspects of your fundraising, you may be willing to compromise here.
You can also save it by skipping the dealer add-on. Add-ons are generally caught up in the loan itself, which can also inflate the cost of funding. This means paying interest on those purchases for years. While attractive, these are usually expensive and can be added later when not in a high-pressure sales environment.
Conclusion
This year’s Memorial Day car sales are hampered by a complex web of economic factors, but that doesn’t mean you won’t be able to find a fair deal if you’re in the market for new vehicles. By comparing car loan rates and knowing you’re in the market, comparing shopping in advance will help you determine if the right deal for you is the right person if you’re a lot of people.
