WHY Are There NO Great Car Deals This Labor Day Weekend And WHY Are Used Car Prices RISING?

For years people have asked me when the best time of the year is to buy a car (no, it's NOT the last week of December) and reliably I could say Memorial Day Weekend, 4th of July and Labor Day Weekend. Labor Day always being the BEST of the three.

Especially, if the manufacturers are behind on their yearly forecast.

Last labor day I leased a $28,500 MSRP 2019 Fusion Hybrid for my daughter. The deal was $169.00, 36 months, 10.5k miles a year. ZERO down, tax included. CRAZY cheap.

But this year, I've found NOTHING to make me or my friends motivated to get a deal.

And the funny thing is not only are the deals GONE (other than 0% financing) products that had HUGE discounts like Jeep Wranglers (average 6-12k off MSRP) are no longer being sold at fire sale prices. A quick check today at the usual Jeep dealers known for big sales are only offering $1500-3k off.

And on the used car market, prices at dealer auctions are going UP on pickup trucks and hot vehicles like the Kia Telluride. A loaded Telluride SX like mine with 17k+ miles on them are selling for $1k OVER original MSRP at auction. For a USED car!

So tell us Spies, why do you think this is happening? Are are you seeing similar things happening in your areas?

PUGPROUD - 9/5/2020 8:17:36 AM

+1 Boost

Duh...low supply, high demand.

MDarringer - 9/5/2020 8:20:58 AM

+2 Boost

No mystery. New car supply is decimated. CPO is raided. We have a new phenomenon: lease extensions.

skytop - 9/5/2020 11:00:54 PM

0 Boost

Like nobody notices that car prices are rising at ridiculous fast rates.
$85,000 trucks and $105,000 cars are quite common now. Even the "cheap" Korean cars are all up in the $30's now.

MDarringer - 9/6/2020 9:58:12 AM

+1 Boost

And yet whenever I say that cars are too expensive for what they deliver I get the barking Chihuahuas frothing at their mouths.

mre30 - 9/8/2020 10:13:00 AM

+1 Boost

Cars are definitely too expensive.

Hopeful auto retailers and manufacturers don't over exploit this temporary lack of supply situation and do stupid things with the product pipeline or customer service (i.e by getting arrogant).