The Kelley Blue Book reports the average new-vehicle prices are up 3.5 percent year-over-year. With 2020 being such a turbulent year for the auto industry, consumers are having to keep up with an ever-changing buyers market. But there is good reason to consider buying a new SUV right now. A slowdown of inventory has resulted in dealerships having to adjust their strategies in order to make sales. You may be able to score a good deal by searching online for what vehicles are available right now.
Promotions and sales events are always changing at dealerships, especially when sales are slow. You can find the latest promotions and incentives that are currently available by searching online.
Here’s why now might be the best time to find a deal on an SUV.
New Inventory is Behind Schedule
Next year’s vehicles are typically rolled out in the summer. But that rollover is behind schedule in 2020, meaning there are less 2021 models available to buy in dealerships. A Cox Automotive analysis shows 2021 models only account for 0.5 percent of current inventory in unsold vehicles. So, what does this mean for consumers?
Customers will have to settle for current year and previous year models. Being a flexible buyer will help increase your chances of scoring a deal. Even inventory is running low on the country’s most popular SUVs, meaning you might have an easier time buying a less popular model. Luxury SUVs are also included in this inventory downturn.
Inventories are always changing. Eventually, when more 2021 vehicles are released, dealers will begin reducing prices on last season’s units to make room for the new ones. You could cut a decent amount of money off the original price simply by waiting for a newer version to hit the market.
While you’ll be sacrificing some newer bells and whistles by opting for a current year model, the payoff can be well worth it. Keep an eye out on nearby dealerships and automaker news to see when 2021 models are released. It will be easier for you to negotiate a good deal when sellers need to make room for a new batch of SUVs coming in. The savings may increase as you select vehicles released further back from the current year, like in 2018 or 2019.
Incentives and Deals Are Always Changing
One benefit during this time of low inventory are the current rates. You won’t have to overpay for a new vehicle, as financing rates for auto loans hit their lowest in over a year as of May 2020. This could be something worth taking advantage before these rates inevitably climb back up.
Although there is a slowdown of new vehicles rolling onto dealership lots, SUVs in the $20,000 to $30,000 range seem to have the most bloated inventories. This is, in part, due to the target demographic being hit particularly hard by the ongoing economic downturn. Because there’s a higher inventory of SUVs and fewer customers who are shopping for these vehicles it may be easier for buyers to get a better deal.
While financing rates can vary, so do the incentives being offered. Deals will vary at each dealership. Reputable sellers will regularly update its website with the current prices of its inventory. Searching online often and signing up for newsletters can help you decide when it’s time to snap up a low-priced deal.
How to Save Money on a New SUV
Along with taking advantage of deals that could come from low inventory and financing rates, there are other things you can do to save money on a new SUV. You should keep an open mind when shopping for an SUV.
You might not be able to score as good a deal on a 2021 model or popular current year model. Look into SUVs you may not have originally considered to increase your chances of finding a deal. The good news is all cars made in the last few years usually have modern amenities like cameras, safety sensors, and more, so you likely won’t be out on much.
Remember that many dealerships will often carry the same vehicles, which is why it’s important to compare prices online before heading to the lot. You can see what places are offering the SUV for the lowest price. Do your research, choose older vehicles, and keep up the latest incentives to maximize savings on your new SUV.