Labor Day car deals abound at this time of year and if you're looking for a good deal on a car truck or SUV you could be in for savings if your credit is in good shape. But what about those struggling with credit issues? Are there Labor Day deals for them?
Here's what we know.
Bad Credit and Advertised Incentives
Advertised deals that you often see on TV or hear on the radio typically come with the phrase "for qualified buyers" or "well-qualified lessees" which means that there are stipulations on the advertised incentives. The main requirement many automakers have when you're taking advantage of this type of deal is that you have to finance through their captive lender, and to do that you typically need good credit. The credit score range needed to qualify with an automaker varies, but usually, borrowers will need a credit score above 670 if they hope to get in on any deals.
Borrowers with lower credit scores may find themselves out of the running for financing through a captive lender and will need to seek other options, like subprime auto loans from a bad credit lender. These loans are subject to higher interest rates, and you may not qualify for the vehicle discounts advertised. Don't let that discourage you, however, since there are still ways you could save as a low-credit customer.
Bad Credit Borrowers Looking for Deals
If you have a poor credit score and aren't sure where to turn you can start by searching for franchised dealerships that are known to work with lower-credit customers, such as Chevy, Kia, and Ford.
According to dealer incentive documents, we know that Chevy considers bad credit to be 620 or below and that in the past Chevrolet has also often run deals on some of their more affordable vehicles which include a special rate for subprime borrowers and often, a cash discount as well. Kia also allows credit scores as low as 620 for financing. Hyundai is known for financing consumers with scores as low as 580 in some cases.
Additionally, just because you may not qualify for the low advertised deals on new cars, doesn't mean there aren't deals out there during the Labor Day weekend. There are many dealership-level discounts that you can often find on new, used, and CPO vehicles. So if you're going to shop, make sure to call around to your local dealerships and see what incentives they're offering.
Best Labor Day Car Sales For 2023
If you do qualify for the incentives that are prevalent around holidays in the U.S., there is plenty to be had on many types of new vehicles. Here are some of the best deals found courtesy of our sister site, CarsDirect:
- 2023 Jeep Compass: Right now you can score up to 10% of MSRP in many parts of the country when you purchase a 2023 Compass. The Northeastern region is seeing an even bigger discount with up to 15% off. Hurry though, this deal which could be worth as much as around $5,500 on a well-equipped Compass Trailhawk, ends on September 5. These deals depend on trim and actual discount varies by configuration, some exclusions apply.
- 2023 Ford Edge: Ford is offering the Edge for 0% financing for 60 months. Plus, through Labor Day you can get $500 trade-in assistance plus a $1,500 rebate. This all comes out to $2,000 off plus 0% financing. Ford Edge deals can vary by region, and the best deals can be found in larger regions, like California. Check your local Ford dealer for incentives near you.
- 2023 Chevrolet Silverado: If you're looking for a truck with decent savings, the Chevy Silverado might be for you. Now through September 5 TurboMax Crew Cab trims could get you as much as $61,00 off. This deal consists of $1,600 in Customer Cash, a $2,000 Chevy Bonus, and a $2,500 trade-in allowance. If you'd prefer to get a low APR, rates start as low as 1.9% for 36 months, but you lose your customer cash bonus.
- 2023 Kia EV6: If you opt to lease and are looking to go green the Kia EV6 makes a solid choice and the electric vehicle comes with a hefty bonus right now when you choose a sporty GT. You could qualify for as much as $9,500 off MSRP by taking advantage of a $7,500 lease incentive, a $1,000 loyalty discount for current Kia owners, and a $1,000 bonus which is only available on the GT trim. Lease prices have dropped this month, and now the Kia EV6 is leasing for the same price as a Hyundai Ioniq 5, another good option if you're looking for discounts this Labor Day.
Is Labor Day a Good Time to Buy a Car?
Labor Day, like many U.S. Holidays, can be a good time of year to make a purchase if you're looking for a new car, truck, or SUV. At this time of year, many automakers have sales on inventory so that dealers can make way for new stock, which typically starts ramping up in late summer.
These deals can also be a good way to combat rising prices that have stemmed from the last few years, when vehicle shortages plagued the industry and interest rates have been on the rise. Another issue shoppers have to worry about is dealer markups, which can significantly raise the prices of cars.
Other good times to buy a car, besides Labor Day, include Presidents Day, Memorial Day, Fourth of July, Black Friday, and the Christmas Holiday through the beginning of the year.