Memorial Day Car Sales And Pricing Outlooks for 2025

Historically, Memorial Day offers one of the largest car sales of the year. The extended weekend gives consumers more time to browse lots, and many dealerships are looking to clear out inventory to make way for next year’s models. These sales largely center around new car financing or leasing, but used buyers can also find sales or special incentives at local dealers.

But 2025 Memorial Day car sales will be different from previous years. Consumers have been battling low vehicle stock, economic uncertainty and historically high car prices since the COVID-19 pandemic. Now, inflation and tariffs are further complicating inventory and pricing. 

That said, there are still some good opportunities out there if you’re in the market for a new vehicle. 

How will Memorial Day car sales look in 2025?

Auto sales increased in April after the full extent of the Trump Administration’s tariff plan was released in March. Industry experts have largely attributed this to consumers rushing to make purchases before car prices — which are already at record highs — increase even more. 

This rush to buy has depleted dealer stock, which dipped 23 percent from March, according to data from Cox Automotive. Cox Chief Economist Jonathan Smoke stated that there are currently fewer than 2.6 million vehicles on dealer lots, which he expects to shrink further as consumers buy up pre-tariff stock and imports of foreign vehicles slow. 

As such, buyers will face more limited choices than most are used to, and many manufacturers are hesitant to cut big deals on the eve of tariffs. Some are still deciding how much of these increased costs they can absorb and how much they can pass on to cost-burdened consumers. This is not a buyer’s market, but not a seller’s market, either.

Memorial Day incentives to look out for 

While 2025’s Memorial Day sales might not be as impressive as years past, there are some offers that stand out. The most competitive discounts are currently being offered by manufacturers with higher amounts of vehicle inventory.

• Ford
  

  Now through June 3, Ford is offering employee-level pricing to all customers. The deal applies to most 2024–2025 models. This includes Ford’s lines of gas, hybrid, plug-in hybrid and diesel vehicles — but it excludes specialty vehicles.

  This employee pricing discount can be combined with other promotions as well, potentially saving you thousands of dollars on a new vehicle.

• Stellantis
  

  Stellantis, which manufacturers Jeep, Dodge and Ram vehicles, is offering employee pricing on top of other discounts. These discounts apply to a variety of models from its various manufacturing arms, including:

  • Jeep’s Wagoneer, Grand Cherokee and Gladiator.
  • Ram’s 1500, 2500 and 2500 models.
  • Dodge’s Charger, Durango and Hornet.

• Hyundai and Kia
  

  If you’re in the market for something smaller, Hyundai and Kia are both offering 0 percent APR financing and leases starting at $169 per month and $129 per month, respectively. However, like all special financing options, you will need excellent credit to qualify for the most competitive offers.

• Mazda
  

  Mazda is offering financing as low as 1.9 percent APR on select models. It also has leases starting at $239 per month.

• Nissan
  

  Nissan is offering financing as low as 0 percent APR with a $500 bonus cash. Some models are being leased starting at $249 per month.

How to make the most of Memorial Day car sales

Automotive sales save you the most money when you know how to work them. Here are some strategies to help you get the most from this year’s Memorial Day sales.

Know your credit score

Thomas suggests that borrowers should check their credit before heading to the car lot. Regarding increasing credit denials, he says, “It hasn’t been good, just to be point blank. Credit access and credit denials are at some of their highest points in recent years.”

This is because the automotive industry has been undergoing an affordability crisis. People of all credit tiers have seen average auto loan rates increase. And if your credit is 600 or below, you will struggle to qualify for many Memorial Day sales. Despite the potential price hike due to tariffs, it may be better to wait and work on improving your credit score to take advantage of Labor Day auto sales instead.

Apply for preapproval

Ideally, you should arrive at the dealership with financing in hand. This will give you more negotiating power. If the dealer wants to handle your financing, they’ll have to beat whatever offer you already have — which could help you score an even better rate, especially with Memorial Day sales in effect. Wojcik explains that arriving at the dealership prepared is central to getting a bargain.

“Memorial Day is also a high-traffic time when demand (customers on the lot) may be pretty high. That might mean [the sales team] has less urgency and time to work with you on a deal, and would rather move on to another more ‘ready’ customer.” 

That’s not to say you should accept a mediocre offer for fear of missing out. Always run the numbers through an auto loan calculator to ensure an offer meets your needs. But preparing beforehand will grease the wheels of getting into a new set of wheels. 

“Be prepared with your research, bottom dollar, financing and ability to walk away if the numbers don’t make sense,” Wojcik advises.

Home in on the APR

It’s tempting to focus on the monthly payment when car shopping, but don’t ignore your loan’s annual percentage rate (APR). This includes the interest you’ll pay on the loan for one year plus any loan fees. For that reason, APR gives you a more accurate picture of what your loan will actually cost.

In terms of Memorial Day sales, determine whether a low APR or cash back deal has a lower overall cost. Although both are becoming rarer, there are some out there if you have the credit score to qualify. 

A 0 percent APR offer will lead to smaller monthly payments, which in turn lead to a quicker payoff. This could be a good option if you have a large down payment. If your down payment is small, you might be better off taking the cash-back offer since your rebate can be applied to your down payment, essentially shrinking the principal of your loan. 

Consider dealer financing

When it comes to Memorial Day sales, you may need to opt for manufacturer or dealer financing.

“Some dealers might be trying to move as much inventory as possible before any more impacts occur, and that can play in your favor,” says Wojcik. And in fact, many American manufacturers have been leveraging their advantage by offering employee financing and stacked incentives for customers looking to buy before tariffs hit.

Typically, the best dealer financing opportunities are reserved for borrowers with excellent credit. Right now, however, dealers seem to be extending these opportunities to more customers than usual. Even in more normal markets, you may still qualify for dealer financing if you make a large down payment or have a valuable trade-in offer. 

Make a down payment

A down payment reduces the amount of money you have to borrow to purchase a car. It also reduces your lender’s risk, often leading to a lower APR. The benefits of a down payment include reducing your monthly payment and giving you more equity at the start of your loan. 

A large down payment may also help  you qualify for better discounts and incentives, especially if you don’t have the best credit. Overall, putting 10 to 20 percent down on a car is a necessary way to prevent an upside-down on your car loan — especially if you’re stacking it with other Memorial Day offers.

Leverage your trade-in

Even if your current car is older or has a few more miles than you’d like, it may have more trade-in value than you realize. 

“In 2021 and 2022, they weren’t able to build as many cars as they wanted to build,” explains Sean Tucker, Managing Editor of Kelley Blue Book. “There’s about eight million cars that don’t exist because of COVID, and they will never reach the used car market.”

As a result, used cars have been holding their value unusually well. While three years used to be the golden age for a used vehicle, older cars are now selling well.

“The biggest savings that any buyer has is their trade-in,” says Thomas. “Your trade-in has much more value than it did a month or two ago. So focus on that trade-in value. The dealer will want your car.”

Don’t pay extra fees or dealer add-ons

If you choose dealer financing, ask for a list of fees associated with your loan. Many dealer fees are unnecessary and can be waived if you ask. Waiving fees is a small loss to the dealer, but could mean hundreds of dollars in savings for you over the life of your auto loan. If the dealer is unwilling to budge on other aspects of your financing, it may be willing to compromise here.

You can also save by skipping dealer add-ons. Add-ons can also inflate the cost of financing since they’re generally rolled into the loan itself. This means you’ll pay interest on those purchases for years. While tempting, these are usually pricey and can be added later when you aren’t in a high-pressure sales environment. 

Bottom line

This year’s Memorial Day auto sales are hampered by a complex web of economic factors, but that doesn’t mean you can’t find a good deal if you’re in the market for a new vehicle. Comparison shopping beforehand by comparing auto loan rates — and knowing what you’re in the market for — will help you decide if a deal is right for you once you hit the lot.