Black Friday car deals in 2023 may offer good car buying opportunities, particularly for models with high dealership inventory.
Current car stocks are recovering but remain lower than pre-pandemic levels, affecting the scope of holiday car sales this season.
Flexible buyers can find value in auto financing deals through Black Friday, but should be aware of limited inventory and higher interest rates.
Auto Market Update: Finding Value in Black Friday Car Deals 2023
After the United Auto Workers strike ended, the car market is changing a lot. Now, there are more cars available and better deals for buyers, just in time for the holiday season and Black Friday, which is known for its best car discounts. The auto industry dealerships are adjusting to these changes, and car makers are using different marketing strategies. In today's post-strike auto market, it's important for buyers to be well-informed to make good choices during this time.
Let’s delve in and examine the impact of the strike’s resolution on car availability, the nature of Black Friday car deals 2023, and how potential car buyers can maximize their benefits amidst these changing conditions.
Union Agreement Ends Auto Workers Strike
On October 30, 2023, the United Auto Workers strike summed up following an agreement with General Motors. Kelley Blue Book's 2023 car buying guide reports that some car dealerships, having stocked up in anticipation of shortages, now find themselves with an excess of vehicles. As for vehicle supply trends, the average dealership boasts a 67-day supply, but certain brands like Toyota, Honda, and Kia are still facing shortages. This supply shift increases the likelihood of Black Friday auto loan offers on models like the Ford F-150, Chevrolet Silverado, and Ram 1500.
Best Car Discounts Black Friday Deals
Holiday car sales 2023 often vary, set by car makers. Deals can include special financing options on selling models, trade-in credits, and reduced car prices. Dealerships might offer additional promotions.
Financing Offers: Common deals include zero down payment, zero percent APR, and delayed payments, subject to credit approval. Often, cash discounts are available as an alternative to financing deals.
Direct Discounts: Expect reductions off the Manufacturer’s Suggested Retail Price (MSRP) and higher trade-in values, which can reduce sales tax on your new purchase.
Leasing Options: Leasing deals could provide lower monthly payments or higher mileage limits for the lease term.
Brian Moody from Autotrader notes that although manufacturers are offering more incentives, the 2023 holiday season will likely have fewer significant price cuts due to tight inventory.
Current Car Buying Climate
Cox Automotive’s chief economist, Jonathan Smoke, shows a rise in new vehicle supply, yet it remains below 2019 levels. Used car supply is also down compared to last year. Continued strikes could further impact availability and pricing.
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Interest Rates and Financing: Current interest rates make financing more expensive than in previous years. If not in urgent need of a car, waiting out the Black Friday rush might be wise, possibly leading to better deals and lower financing costs in the future.
EV Deals Stand Out: Electric vehicle incentives holiday season of 2023 average nearly 10% of the transaction price, providing significant savings opportunities.
Preapproval: Getting preapproved for an auto loan gives you a clearer budget and better negotiating power. This could lead to lower purchase prices, especially if dealership financing is not a necessity.
The Bottom Line
As we navigate the landscape of this year's Black Friday, it's evident that while there are opportunities for savings, they may not be as substantial as those seen in pre-pandemic times. For those not in urgent need of a vehicle, waiting until the end of the year or even into the next might yield better deals as inventory levels continue to improve. However, for buyers considering purchasing a car during this opportune time, financing the purchase with an attractive car loan becomes a viable option.
By thoroughly comparing the top lending companies and exploring the best interest rates on vehicle sales available in the market, car shoppers in North America can secure a financial deal that aligns with their budget and enhances the value of their buy. As always, informed decision-making is key to navigating the dynamic auto market easily.