Car buyers are eagerly anticipating Memorial Day sales, traditionally a prime time for deep discounts and attractive incentives. However, early indicators suggest that 2025’s deals may fall short of expectations. This year, several headwinds—including ongoing tariff uncertainty, persistently high auto loan rates, and shrinking vehicle inventories—are clouding the outlook for May promotions. These factors are likely to dampen the kind of aggressive incentives shoppers have come to expect from Memorial Day car sales.
Here’s why some auto industry analysts are bracing for a quieter sales weekend in 2025.
Inventory Is Falling As Buyers Get Ahead of Tariffs
According to Cox Automotive, the industry-wide new vehicle supply dropped to just 70 days at the start of April, a 23% decline from March. CarEdge Insights reports that inventory levels remained similarly tight in late April. This spring rush has been fueled in part by buyers trying to get ahead of potential price hikes tied to looming tariff concerns.
As Memorial Day approaches, inventory constraints are particularly pronounced at brands like Lexus, Toyota, Honda, and Subaru. With fewer cars on the lot, these automakers are unlikely to offer standout holiday deals this year.
But there’s still hope for deal hunters—if you know where to look.
Several brands are sitting on inventory levels well above the industry average heading into May. These brands have over 90 days of market supply, and are likely to have the best Memorial Day car sales in May 2025:
- Ford, Lincoln
- Nissan, Infiniti
- Stellantis brands (Jeep, Ram, Dodge, Chrysler)
- Hyundai
- Mazda
- Luxury brands like Jaguar and Land Rover
These car brands will have more flexible pricing and stronger incentives as they look to catch up to the competition. Many are also still working through large volumes of unsold 2024 models—more on that below.
👉 See the fastest and slowest-selling new cars right now
Last Year’s Models Are This Year’s Deals
Manufacturers are under pressure to clear out 2024 models, four months into the new year. In April 2025, 348,000 of the 3.1 million new cars for sale in America were 2024 models. Many of them are trucks like the Ford F-150 and Ram 2500. There are also plenty of last year’s electric vehicles that remain unsold. These are prime targets for zero percent financing Memorial Day specials.
Here’s a look at cars and trucks with the most remaining 2024 inventory as Memorial Day 2025 approaches:
Unsold 2024 models will be the most negotiable cars in May 2025. You should be able to confidently negotiate at least 15% off MSRP for any remaining 2024 model, even those impacted by auto tariffs. Use CarEdge Insights to find aging car inventory in your city.
Low APR Incentives: A Closer Look
Low APR deals are a win-win for both dealers and buyers. For dealers, it’s about liquidating stock without slashing sticker prices dramatically, which can devalue the brand. For buyers, these subsidized rates lower the monthly payment, making an upgrade more feasible. Expect to see APR offers as low as 0% for qualified buyers on select models, alongside generous cash-back offers and lease deals.
In fact, there are already several 0% APR offers on the market today…
👉 See the best APR and cash offers this month
The Most Negotiable New Cars and Trucks
As we inch closer to Memorial Day, certain vehicles stand out for their negotiability. While the specific models and deals will be confirmed as the holiday approaches, here are some categories to watch:
- Last Year’s Inventory: Memorial Day car sales are the manufacturer’s best chance to clear out the last of 2024’s remaining inventory. Expect crazy deals on these, especially trucks, Jeeps and electric vehicles.
- Truck Deals: Automakers have simply priced new trucks too high, and buyers are pushing back. This has led to an oversupply of new trucks on dealer lots. Expect big deals on Ram trucks, and the Ford F-150. In fact, there are already some great low APR offers out there. Check out the truck deals.
- Brands with High Inventory: As we outlined above, several popular car and truck brands have more than 90 days of market supply heading into May. Expect Ford, Jeep, Ram, Dodge, Hyundai, and Mazda to have the best deals due to high supply.
Gear Up for the Deals
This Memorial Day, CarEdge is your go-to resource for navigating these sales. Not only will we provide a one-stop resource for the best car sales, we’ll also share car market insights that you won’t find anywhere else. 👉 Bookmark this page and check back in early May to see what automakers have to offer! Head to this page for the best deals right now, no matter when you’re reading this.
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