Will you be able to get a deal on a new or used car at the Labor Day car sales this year? Maybe.
About 87 million Americans will be shopping for cars this Labor Day weekend.
August is usually one of the biggest months of the year for auto sales, especially the weekend of Labor Day.
But, can you get a deal?
Car shoppers are saying no to new cars because of high prices, with the new vehicle average transaction price at $49,461 in April, according to USA Today. New car prices have increased by 1.8 percent year-over-year. Car tariffs have caused new and used car prices to increase, with the demand for used cars increasing their prices. In addition to higher new car prices, drivers are also dealing with historically high gas prices which are driving up ownership costs.
So be sure to compare prices when you shop and practice your negotiation skills. Also, be prepared to walk away if the best “deal” you can get is beyond your budget.
In 2026, finding the right new or used car is difficult, but affordable cars are out there if you do lots of research.
In addition to comparing prices, other car shopping tips include:
Determine what you can afford. One “rule” is to spend no more than 25 percent of your monthly income on all your cars and their related expenses such as insurance.
Get a preapproved loan before you begin shopping. Check with a credit union, an online lender, or a bank. Be aware that there online loan companies that aren’t reputable. Compare interest rates and terms including length of loan and down payment. Be prepared with this information so you can compare it to what the dealer has to offer.
Research vehicles. Check Consumer Reports’ recommendations for new cars and used cars. A great price isn’t necessarily a good deal if the vehicle doesn’t measure up. Check to see if any recalls on used cars have been repaired.
Take your time during the test drive. See how the car handles on different kinds of roads and in a variety of traffic situations. Check out the controls and the size of the storage space.
Be prepared to bargain. Negotiate the price of a new car and the trade in separately. Know what the base price of the car is. Watch out for add ones. Find out in advance the cost of any extras such as an extended warranty, paint protection, or a prepaid maintenance plan. Make sure what you’re negotiated verbally is part of the written documents.
Good luck. Buying a car is always challenging, and in these times of rising costs, it’s even worse.
