Car deals are there for the taking
Hybrids, electrics linger as market moves bigger
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.
Quite simply, deals are out there if you know where to look.
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.
To be sure, deals can be highly local. For example, people affected by the volcanic eruption in Hawaii are being offered special pricing by local dealers, deal-tracking firm AIS Rebates says.
But some truths are virtually absolute in car shopping these days: 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. That reflected the highest incentives for any nonluxury segment. In other words, the net price of the average compact car was just over $20,000 in August. ❚ Choose wisely among compact crossovers: This segment has been red-hot for the past few years, leading prices up to an average of $28,711 in August, or 23.8 percent more than the similarly sized compact car category.
But this segment is getting crowded. Most major automakers offer a
compact crossover now, so they are jockeying for market share.
“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: Luxury cars have not been immune to the trend of consumers buying larger vehicles. The entry-level 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. In September, the 2018 Acura RLX is being offered with $8,000 in dealer cash, according to Autotrader.
“This month, in particular, we have seen beefy incentives on some luxury cars because luxury buyers are choosing utilities over traditional cars, as they are in the nonluxury market,” Autotrader analyst Michelle Krebs said. ❚ Consider jumping on a lucrative lease pull-ahead offer: Rising interest rates and the threat of tariffs raising prices have added to the incentive to accept offers from dealers and automakers to turn in a leased vehicle early in exchange for cash off a newly leased ride.