We recently took a closer look at the ways that car buying is changing, and we concluded that the best time to buy a car has changed. And no, the best time to buy a car isn’t Black Friday. Before you run out to buy a car on Black Friday 2022, here’s what you need to know about the better deals that are just around the corner.

• Wait 30 days to negotiate a lower price
• Don’t confuse Black Friday deals with bigger year-end sales events
• Interest rates can change the equation for big borrowers

Let’s dive into the details.

Black Friday Car Deals Are Modest

Our own CarEdge auto experts joke that Black Friday is known more for doldrums than for car deals. Most folks are out shopping at big box stores or spending time with family, not perusing the dealership lot. Former dealership finance manager and CarEdge extraordinaire Kimberly Kline said that Black Friday at the dealership is more commonly associated with sitting around and talking football than making more sales. 

CarEdge Co-Founder Ray Shefska quipped that salespeople know that those shopping at the dealership on Black Friday probably need a car pretty bad, and are willing to pay more for it. 

Still, there are some deals out there, particularly in financing. These are the best car deals we’ve found for Black Friday 2022:

• Volkswagen’s Sign and Drive lease special is back, making it easier to drive off the lot with no money down. 
• Get $3,500 cash allowance with the Dodge Durango, or lease from $439/month.
• The 2022 Ram 1500 is available with 2.9% APR financing for 72 months and $4,000 in bonus cash.
• Select Subaru models are available at 2.9% APR financing.
• Lease a 2022 Mazda MX-30 for under $200/month for 24 months
• Finance the Ford Edge for 72 months at 1.9% APR
• Finance the Ford F-150, Escape or EcoSport at 1.9% APR for 60 months
• 0.9% APR for 48 months for several Hyundai models: Elantra, Kona, Santa Cruz, Santa Fe, Sonata, Tucson, Venue

See this month’s best auto loan rate offers and the best lease deals for more information.

Still, better deals are to come in December. Here’s why we’re confident that most car buyers should wait.

The Car Market Is Changing By the Day

Whether you’re in the market for a new or used car, a lot can change in the span of a month. Black Friday car deals are just the tip of the iceberg, and this iceberg is just now coming to light. In 2022, used car prices have finally started to decline. This trend only recently translated to retail sales in the fall, with better deals sure to come in December. Better yet, our team of Auto Experts are helping more people get deals at or even below MSRP for new models. One year ago, that was next to impossible. 

So, what’s the difference between taking advantage of Black Friday car deals and waiting a bit longer? Those with patience are likely to be rewarded with the best deals yet in 2022: year-end car sales. Historically, the best time to buy a car has started around Labor Day and lasted to the end of the year as dealers lowered their prices to move older models off their lots. In 2022, dealers are thankful to have anything at all on their lots. Still, buyers have increasing leverage heading into December. Let’s take a look at why this is so…

• Floorplanning costs are skyrocketing. Did you know that dealers finance the cars on their lots, much like car buyers do? You might have noticed that interest rates are rising. In fact, the average new car APR now exceeds 6%. Auto loan rates have risen over 100% since the spring. More on what higher interest rates mean for car buyers here. Dealers are paying more in financing costs for floorplanning, and by December, rates will be even higher. Car buyers will have more leverage in the final weeks of December, especially on vehicles that have been sitting on dealer’s lots for months on end.
• Demand for cars is softening. Higher interest rates plus lingering fears of a recession are causing more would-be car buyers to sit out the auto market for now. However, demand has remained strong for popular vehicles like EVs, plug-in hybrids and some trucks.
• Dealers will need to rotate inventory. No dealer wants to be the one with the old stuff, especially when it comes to newly redesigned or discontinued models. As the new year approaches, dealers warm to the idea of negotiating below MSRP for some models.
• Everyone wants a bonus. Most dealers dish out year-end bonuses to salespeople who made the most sales. December is crunch time! They’re ready to cut a deal, and you’ll be there to use that leverage to your advantage with end-of-year car deals. 

In summary, there will be better new and used car deals in December.

Financing Your Purchase? All Eyes On the Fed

More than 85% of new car buyers finance with a loan, so it’s important to address the greatest uncertainty in the months ahead: rising rates. After rising more than 100% this year, auto loan rates are expected to climb even further in December. If you expect to have a small down payment and a large amount financed, getting the lowest APR possible should be a priority. 

For buyers planning to finance a large amount with longer loan terms (60 months+), it may be worth it to take advantage of one of the better Black Friday car deals in 2022. 

Consider the following example: Say you buy a new truck in November, and finance $35,000 at 5.0% APR for 60 months. You would pay $4,629 in total interest over the 60 month loan term.

If you instead wait until December end-of-year car sales and buy the truck at a better price and finance ‘just’ $33,000 at a higher rate of 7.5% APR for 60 months, you’re actually paying $6,675 in interest, or $2,046 MORE in interest over the next five years. 

It may be wise to buy sooner rather than later if you’re planning to finance a large amount with a longer loan term.

How can you get a low APR on your car loan? Finance with CarEdge! We work with trusted credit unions offering low rates and great customer service. Learn more and get pre-approved in minutes!

Here’s How We Can Help Today

Buying a car generally isn’t fun. Sometimes, it’s downright miserable. Our mission at CarEdge is to make car buying, selling and ownership hassle-free, transparent, and less expensive.

Would a car buying coach make this whole process easier for you? CarEdge is changing car buying for the better. This is LONG overdue, isn’t it? Check out hundreds of free resources, or learn more about how CarEdge can help you negotiate a better deal today.