With Labor Day Weekend coming up so soon, anyone who is currently in the market for their next vehicle has probably heard the rumors that they should wait until Labor Day to buy a car.
If you’re currently shopping for a new or new-to-you vehicle, how much stock should you put in these rumors? If you’re ready to buy your car now, is it really worth it to wait for Labor Day to make your purchase?
Plus, the auto industry has been turned upside down by COVID-19 with widespread dealership closures and production delays. How will these changes affect traditional Labor Day car sales?
Keep reading to learn more about the truth behind Labor Day Weekend car sales and learn which deals apply and which don’t for Labor Day 2020.
Why are Cars Cheaper on Labor Day?
It is true that Labor Day Weekend tends to be one of the most affordable times of year in which to buy a car. This pattern is due to multiple factors, some of which apply for Labor Day 2020 and some of which do not.
Labor Day Weekend is an extended holiday weekend, just like President’s Day Weekend and Memorial Day Weekend. Car dealerships tend to offer special deals and discounts on various models within their inventories over holiday weekends in attempts to promote themselves and draw in more car buyers.
Plus, Labor Day Weekend also usually coincides with the end of the month of August. At the end of each month, car prices tend to drop as car salesmen strive to meet their monthly sales quotas.
Finally, Labor Day Weekend falls around the same time of year when car dealerships are trying their best to make room for new vehicles for the next model year before the end of the current year. This means that car prices are generally lower in August and
September of each year, which happens to be the same time of year when Labor Day occurs.
2020 Looks a Little Different
The world has basically been turned upside down in 2020 as a result of the onset of the novel coronavirus pandemic around the world. 2020 looks a lot different than any other year in the recent past. Does that mean Labor Day Weekend car sales will be different, too?
One factor that may affect Labor Day Weekend car prices in 2020 specifically actually doesn’t have anything to do with COVID-19. While Labor Day Weekend often coincides with the end of the month of August—which generally leads to better deals and discounts on cars over the three-day weekend due to car salesmen struggling to meet their monthly sales quotas—Labor Day 2020 falls a full week into September. This means that the usual end-of-month discounts may not apply on Labor Day in 2020, but it is not certain how much of an impact this will have on Labor Day Weekend car sales.
Production delays as a result of COVID-19 have led to widespread shortages of vehicles from previous model years on car dealership lots. This probably won’t affect Labor Day Weekend sales on used cars and cars from previous model years. However, it is worth keeping in mind that you might not have as many options for used cars and cars from previous model years as you would like due to these production delays.
Also, just because some automakers have delayed their release of some of their cars for the next model year does not mean that car dealerships are not striving to make room on their lots in 2020. Many automakers still plan to release their 2021 models within the third or fourth quarters of 2020, which means that car dealerships will still need to prepare for the influx of a variety of 2021 vehicle models on their lots in the near future.
Labor Day Weekend is undoubtedly a good time of year to buy a car. Although Labor Day Weekend car sales might shift slightly in 2020, you will likely still be able to find great deals and discounts on cars over Labor Day Weekend 2020.
If you can wait until Labor Day to buy your next vehicle, you should. However, if you’re desperate to get your car now and are willing to pay a slightly higher price, it is not strictly necessary to hold off on your purchase.