Labor Day car deals aren't as prevalent this year as they have been in past years, but there are still some deals out there. If you're looking for a good deal on a car, truck, or SUV this Labor Day holiday, you could be in for savings if your credit is in good shape. Some of the biggest deals we're seeing this year are on luxury vehicles and EVs.
But what about if you're struggling with credit issues? Are there Labor Day deals for you?
Here's what we know.
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 for taking advantage of this type of deal is that you have to finance through their captive lender. To do that you typically need good credit, but the credit score range needed to qualify varies by automaker. Typically, borrowers need a credit score above 670 to get in on holiday deals from many car manufacturers.
This means that borrowers with lower credit scores may find themselves out of the running for financing through a captive lender. They 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 – typically with rebates instead of lower rates.
If you have a poor credit score and aren't sure where to turn, you can start by searching for franchised dealerships known to work with lower-credit customers, such as Chevy, Kia, Hyundai, and Ford.
Kia allows credit scores as low as 620 for financing, and Hyundai is known for financing consumers with scores as low as 580 in some cases. According to dealer incentive documents, we know that Chevy considers bad credit to be 620 or below, and, at the time of writing, they're offering a subprime financing deal of 13.9% APR for up to 72 months, plus $1,000 in down payment assistance on all 2024 and 2025 Malibu models, as well as remaining 2023 Trailblazers.
Additionally, just because you may not qualify for the low-advertised manufacturer deals on new cars, doesn't mean there aren't deals to be had during the Labor Day weekend. Labor Day weekend is typically known for 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 your local dealerships and see what incentives they're offering.
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. The deals listed below are for California, but similar deals exist in other regions. Offers expire September 3. Here are some of the best deals found courtesy of our sister site, CarsDirect:
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.
Senior Automotive Financing Editor
Meghan is expertly versed in automotive special financing and pricing analysis, having published hundreds of articles on Auto Credit Express and its sister sites, CarsDirect, and The Car Connection over the past decade. She began her career as a sports writer for the local newspaper in her hometown nearly 30 years ago, and has enjoyed writing ever since. Read more
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