Summer 2024 sees vehicle discounts surge as car buying conditions improve

Car shoppers this Memorial Day weekend are finding better deals than in previous years due to a surplus of 2023 vehicles at dealerships. Edmunds reports that discounts have more than doubled compared to last year, with average savings now around $4,147. This comes as a relief amid rising costs of car ownership, which include insurance and maintenance fees.

The market shift from a seller's to a buyer's market is evident, with incentives from both manufacturers and dealers aiming to accelerate sales. Notably, Stellantis is offering significant discounts, and there are attractive options for electric vehicle buyers, including federal tax credits. Meanwhile, used car prices have dropped significantly, moving away from the pandemic trend where they cost as much or more than new cars.

Dealerships are offering a variety of incentives this Memorial Day weekend to attract car buyers. Some of these incentives include steeper discounts on 2023 vehicles, lower interest rates, and special financing offers. For example, the average discount on last year's models is $4,147, more than double the $1,919 average for 2022 models last year. Additionally, automakers and dealers are offering low APR deals, such as 0% financing for qualified buyers on select models. There are also cash-back offers and lease deals available. These incentives are aimed at clearing out the excess inventory of 2023 vehicles and making room for the new 2024 models.