SUVs, Trucks have biggest Memorial Day discounts, experts say

Car dealers ramp up new Memorial Day offers

FOX Business’ Grady Trimble breaks down the Memorial Day weekend auto deals.

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Car dealers throughout the nation are ramping up bargains as many stay-at-home orders ease and dealerships reopen just in time for Memorial Day weekend.

And if you want to save big, experts say trucks and SUVs will likely be your best bet with discounts.

The holiday weekend is notorious for sales in the car industry because dealers are eager to clear out old inventory for incoming models. This year, however, the weekend marks the first big holiday shopping event since the outbreak of COVID-19. This means dealers will be rushing to seize on the deferred demand created by the virus, according to Edmunds, an online resource for automotive information.

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Driving is viewed as one of the most effective methods to ensuring you will not become infected with the new coronavirus or spread it to others, so many others might eager to take advantage of the deep discounts.

"We're seeing far more generous incentives and deals out there than we typically would for Memorial Day weekend, and since more consumers might be looking at vehicles for summer road trips instead of airline travel, things might look up a bit for the industry," said Jessica Caldwell, Edmunds' executive director of insights.

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For 2019 model year vehicles, dealers are offering the greatest deals on full-size trucks with an average reduction of 17 percent compared to the manufacturer's suggested retail price, according to Edmunds. Meanwhile, subcompact SUVs are discounted an average of 16.3 percent and midsize SUVs are discounted an average of 14.4 percent.

For 2020 models, full-size trucks are discounted an average of 13. 4 percent, midsize SUVs are discounted an average of 11 percent, and subcompact SUVs a discount of 13.5 percent.

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However, Carvana CEO Ernest Garcia told FOX Business' Stuart Varney that used car dealerships are able to match that with even lower prices.

"Whenever there are these heavy incentives in new cars what you tend to see is used car prices also drop. While it may not be the flashy no payments for several years, what you'll get instead is just a much lower price on a car."

Caldwell cautioned that although sales may improve after record lows in April, "there's still a layer of uncertainty around whether consumers will really show up en masse to shop given the severe effect that the pandemic has had on personal finances and the economy."

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Regardless, with the virus still active in communities around the world, safety still remains a high concern when searching for the right fit.

Luckily, dealers are well prepared to accommodate shoppers who may not be able to leave the confines of their homes, according to experts at Edmunds,

"The great news is that the entire car buying process can essentially be completed online and from the comfort of your own home," said Ivan Drury, Edmunds' senior manager of insights.

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