Car deals are there for the taking
With new-vehicle prices near alltime highs, it might feel like there aren’t any good deals to be had.
Prices averaged nearly $36,000 in August – slightly below their all-time high, according to Cox Automotive – but blame expensive SUVs and pickups for that pricey trend. There are other types of cars and many exceptions to the rule.
As September comes to a close, many dealers are well into “sell-down” mode – the period when they are trying to get rid of current model-year vehicles to make way for the next year’s lineup. That often leads to deals for outgoing models.
Generally speaking, anyone willing to buy a passenger car can probably find a decent price, if only because so many shoppers are flocking to crossovers, SUVs and pickups. Market share for passenger cars fell below 30 percent in August for the first time, according to Cox Automotive.
Here are five key tips if you’re hunting for a deal this month:
Buy a subcompact, compact or midsize car: These body styles have fallen out of favor, which is precisely why they’re a good deal now.
Compact car prices averaged $23,184 in August, with dealers providing discounts worth about 12.7 percent, according to Edmunds – the highest incentives for any nonluxury segment. So the net price of the average compact was just over $20,000.
Choose wisely among compact crossovers: This segment has been hot for the past few years, leading prices up to an average of $28,711 in August. But this segment is getting crowded.
“They’ve taken over compact-car and midsize car sales,” Edmunds analyst Ivan Drury said. “We see a lot of trade-ins going directly into compact SUVs.”
Discounts are averaging 12.1 percent, totaling about $3,465 per vehicle, according to Edmunds. Some deals are even better. The outgoing body style on the Volkswagen Tiguan, dubbed the Tiguan Limited, was discounted at 26 percent in August on a retail price of $25,543, according to Edmunds.
Consider a hybrid or electric vehicle: Sales of these alternative powertrain vehicles have been tepid, due partly to low gasoline prices and insufficient battery range.
Vehicles such as the Chevrolet Volt and Ford C-Max Hybrid are being discounted heavily at 19 percent each in August, according to Edmunds.
The 2018 Ford Fusion Energi, which is being discontinued, is being offered with a $12,007 cash discount, according to Autotrader.
Don’t write off luxury: The entrylevel luxury car segment is the most heavily discounted of all categories at 15.1 percent off an average price of $46,208. That translates into nearly $7,000 in incentives per vehicle.