Three-day holiday weekends like Labor Day are a great time to find deals on new cars, according to car shopping experts.
According to an Edmunds.com review of the best times to buy a car, shoppers should target three-day holiday weekends, like the upcoming Labor Day weekend, to find deals on new cars because dealerships typically offer steeper discounts to take advantage of increased foot traffic.
You can also throw in the fact that manufacturers typically slash prices on cars from the previous model year around this time of year to make room for newer vehicles, and that makes for an especially great time to go car shopping.
"It's hard to miss the inflatable eagles, gorillas and wacky waving tube men that dot car lots on three-day weekends, to say
nothing of ads that promise 'rock-bottom' prices," the website said.
"Whether it is Presidents Day, Memorial Day, Fourth of July, or Labor Day, be prepared for a busier-than-normal showroom," the website continued. "Ideally, you want to do your research and test drive before the holiday and close the deal on the weekend. Or better yet, wrap up the deal on the first weekday after the weekend."
Why are there so many closeout car deals around Labor Day?
Edmunds said car buyers can still find good deals on new cars and sometimes secure lower interest rates as summer transitions into fall because car dealerships are motivated to make room for the newest models.
"Edmunds analysts say that August and September are when they generally see automakers make the most decided transition to new models," the website said. "In the past, the summer months tend to correspond with a bump in incentives, particularly low-APR financing on outgoing model-year vehicles."
But the website said car buyers can still find good deals on new model-year cars at the end of summer.
"It's rare, but there have been instances when a car from the incoming model year has had better incentives than a car from the outgoing model year, particularly if you're looking to lease," the website said. "It's worth looking at the incoming model-year cars to see what features have changed and to get a feel for pricing."
Carmakers have offered an average discount of nearly 3% in the past five Septembers, according to Edmunds.
At least one used car retailer, Hertz Car Sales, is offering up to $750 off used vehicles nationwide until Sept. 8 in a bid to give consumers "an opportunity to save even more on near-new vehicles already priced significantly below comparable new models," according to company spokeswoman Lauren Luster. To qualify for the discount, drivers have to use the code LDW750 when they shop for used cars on the company's website.
Why 2026 cars might be the best place to look for Labor Day deals?
Even though carmakers are starting to roll out new 2027 models to great fanfare, the vast majority of cars on dealership lots right now are still 2026 models, according to CarGurus.
The group said as of Sept. 1, nearly 90% of new cars on U.S. dealership lots were still 2026 models. That's up from nearly 72% of new cars at the end of August 2025 that were from that model year.
The segment with the highest number of available 2026 vehicles is trucks, which could be good news for pickup shoppers who are looking for a Labor Day deal, the group said.
CarGurus said these models have the highest 2026 supply heading into Labor Day:
- Chevrolet Silverado 1500
- Ford F-150
- GMC Sierra 1500
- Ford Explorer
- Jeep Wrangler
Keith Laing is an automotive reporter on the National Trending Desk at USA TODAY. Contact Keith at klaing@usatodayco.com.
This article originally appeared on USA TODAY: Is Labor Day the last best time to get a great deal on buying a car?
