Decoding Memorial Day Car Sales: Is it the Right Time to Buy a New Car?

Posted Tuesday, May 23, 2023


Memorial Day weekend is synonymous with car sales and special promotions in the auto industry. However, determining whether these events truly offer favorable deals or serve as mere marketing tactics can be challenging. In this blog post, we'll dive into the intricacies of buying a new car during Memorial Day weekend and delve into the current challenges and costs associated with purchasing a vehicle.

Evolving Landscape of Car Buying:

The traditional notion of Memorial Day as an opportune time to buy a car has been disrupted by various factors. Factors such as increased demand, supply chain limitations, and inflation have had an impact on vehicle availability and pricing dynamics. Consequently, finding significant discounts or previous model year cars may prove more difficult this year due to low inventory levels.

The Impact of High Interest Rates:

One of the critical considerations for car buyers is the prevailing interest rates. Following the Federal Reserve's rate hikes, average interest rates for new vehicle loans have surged above 9.5%. As a result, the typical monthly payment has significantly increased, averaging $766 compared to $698 last year. The elevated cost of financing necessitates careful financial assessment before committing to a new car purchase.

Loan Terms and Monthly Payments:

Approaching Memorial Day, it's important to recognize that the most enticing financing deals may require shorter loan terms, resulting in higher monthly payments. While the average loan duration for a new car is around 70 months, many promotional offers emphasize 36-month loans. This financing structure can lead to increased monthly payments, posing challenges for some buyers in affording a new car.

Credit Scores and Affordability:

The current state of the new car market underscores the influence of credit scores on loan rates and affordability. Buyers with good credit can secure more favorable loan terms, whereas those with lower credit scores may face higher interest rates. This discrepancy can lead to substantial differences in total interest paid over the life of the loan, with buyers with lower credit scores potentially paying thousands of dollars more compared to those with higher credit scores.


When considering purchasing a car during Memorial Day weekend or any holiday sales event, it's crucial to evaluate the situation thoughtfully. While promotions may still exist, the prevailing market dynamics, including high interest rates and limited inventory, require buyers to assess their financial situation and affordability. Thorough research, exploring different financing options, and consulting with reputable dealerships are prudent steps to ensure an informed decision aligned with your budget and requirements.