The holidays are the best time of year to splurge on a brand new car. Why? It’s not because people suddenly have the gift of giving. It just so happens to be the most opportune time to snag a great deal. Every year buyers look forward to nationwide sales, like Lexus’ December to Remember event. These sales are commonly pegged by 0% APR or sign and drive incentives. However, as we’ve seen in the last six months, a good deal is far and few in-between these days. Don’t let the festive decor and holiday lights outside dealerships trick you. You’ll quickly notice there are hardly any year-end holiday deals available in 2021 — here’s why.
Where did all the good deals go?
December has always been the month to invest in a new or used vehicle. Between salespeople wanting to reach year-end quotas to automakers releasing the next year’s models, there is a constant push for “out with the old, and in with the new”. Usually consumers love the hype that surrounds the holiday season, but this year sings a different tune.
The reality in 2021 is this: inventories are low, prices are high, and the semiconductor shortage continues to alter production timelines. If you’re looking for a new car this December, chances are you’ll be paying the same price or even more than you would have in June or July. Therefore, don’t expect any great year-end holiday deals when you begin your search this week.
Are there any year-end holiday deals?
Although there are very little year-end holiday deals to rave about this December, we did find a few worth mentioning if you’re in the market for buying something new. Situated at the top of our list is the 2022 Hyundai Elantra, offered at $256 per month for 36 months. Next would be the 2021 Volkswagen Jetta, offered at $279 per month for 39 months. Both advertised for $0 due at signing. Of course, that will greatly depend on your personal credit ranking and subsequent driving record too. What’s more, to avoid the high MSRP prices of 2022 models, you’ll want to take a look at 2021 crossovers and mid-size SUVs instead. Even a year older could make a major difference on your monthly payments.
Conclusion on year-end holiday deals
It’s hard to believe how badly the semiconductor shortage has wrecked automotive sales. According to a study by J.D. Power, approximately 89% of new vehicles sold were bought near or likely above its original sticker price this year. To put things into perspective, that percentage wavered around 12% back in 2019 during the holidays. Therefore, to take advantage of any type of year-end holiday deals, you’ll have need to walk into the dealership without expecting much. That said, hopefully by next December we’ll feel a little more in the festive spirit and more than ready to take on year-end holiday deals.