2016 Labor Day Car Sales a dud.
This year many 2016 Labor Day holiday car shoppers will find frustration over the lack of selection in remaining 2016 models and rare rebates on popular models.
While many car companies have released 2017’s early, the incentives on them are almost non-existent.
For 2016 labor day car sales, you can expect to find limited colors and features in 2016 models and loaded 2017’s in basic colors.
WHY the Low Inventory?
As many auto manufacturers were sure an interest rate increase was coming in January 2016, so the car makers projected a lower demand for new models and scheduled production accordingly.
The rate hike never happened and the economy steamed along. The stock market made money allowing people to feel flush, taking profits for their next car.
Many drivers of 10+ year old vehicles finally tired of repair costs, downtime at the garage and lack of safety features, succumbed to the newest model.
Leasing enthusiasts found out they COULD NOT BUY OUT their car due to recall issues, so they grabbed the lease on the new car as fast as the model arrived on dealer lots.
In addition, the car loan lenders got busy giving credit at decent rates to those who would not have qualified previously, so the dealer didn’t lose the new 2016 car deal.
TAKATA AIRBAG RECALLS add to New CAR demand.
Then in February more recalls on TAKATA airbags sent car makers into a frenzy of NO SALE pronouncements on all used and off-lease vehicles involved.
The result was many leased vehicle owners could NOT BUY OUT their cars, and had to lease or buy new.
Hence, lack of used cars available put additional demand on the 2016 car models already limited new car production pipeline.
If you want to know if YOUR trade has a TAKATA airbag, which could reduce the trade-in value, go to this website first.
HIGH DEMAND – LOW INCENTIVES
This year you will find BIG incentives and rebates, low interest rates advertised on the slowest moving, ugliest or most expensive vehicles left on the lot.
In many cases, these are NOT the car you want nor the interest rate you qualify for with your FICO- AUTO credit score.
For 2016 labor day holiday car sales deals I recommend you be ready to be flexible on your needs versus wants in the features, colors and price demands or be willing to wait til 2017’s go on their first sale around Thanksgiving.
I’m NOT saying you should go over your budget, or settle for a color you really detest, because you will be living with if far beyond the euphoria of a great 2016 labor day car sales deal.
Also note, you should probably call the dealer ahead of time to make sure the car advertised on their website is still there. Car are selling so fast, the web can’t keep up with removing sold cars from the internet.
Disclaimer: Sorry to be such a bummer, but I’d rather tell you the truth before you spend hours at the dealership in aggravated frustration or despair.
Sarah Lee Marks is MyCarlady. She has over 26+ years of experience.
She writes about cars, and is a staunch consumer advocate on car related subjects.
She teaches Driver’s Education, Auto Safety and Car care.
MyCarlady offers free car buying advice, and private, auto-related services to help you maintain your personal or commercial vehicles.
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