Can You Get a Deal on a Used Car This Black Friday?

by Justin Fischer | Last updated Nov 23, 2024 | Black Friday Deals, Car Buying, News

Black Friday is known for new car deals, but can it deliver savings on used cars? Although new car incentives like zero percent financing abound, more than half of buyers are expected to buy a used vehicle this holiday season. So, is it possible to score a great deal on a used car this Black Friday? Let’s take a closer look at the used car market. 

First Things First: New Versus Used

Before committing to a used car purchase, it’s worth considering today’s best new car offers. While sticker prices are undeniably higher for new cars, the abundance of 0% APR financing, generous cash discounts, and affordable lease options can make buying new a better deal over time. However, it depends on a number of factors.

For example, financing a $30,000 used car at 10% APR for 72 months will cost more in total interest payments than financing a brand-new $40,000 car at 0% APR for the same term. The key is to carefully evaluate your financing options and long-term costs.

However, if you’re shopping for a vehicle under $20,000, the used car market is where you’ll find the most options.

To determine whether new or used is the right fit for you, here are some questions to guide your decision:

• What’s your credit score? The auto loan rate you qualify for will have a significant impact on the total cost of your purchase. The average auto loan rate for used cars is about 9% APR in 2024. For new cars, buyers with great credit can qualify for low-APR offers, saving thousands of dollars over your loan term.
• Do you have savings for unexpected repairs? Used cars outside of warranty can bring unexpected maintenance costs, so it’s important to be financially prepared. Compare Total Cost of Ownership [Free Tool]
• How long do you keep your vehicles? If you like to upgrade every few years, buying gently used can help you avoid the steepest depreciation.
• How will your car insurance rates change? Newer cars often come with higher insurance premiums, which can add to the cost of ownership. 

Try this car insurance calculator to run the numbers

By weighing your options carefully and factoring in financing, depreciation, and maintenance costs, you can make an informed choice that best fits your budget and lifestyle. Still set on finding a Black Friday used car deal? Let’s get into the details of what to expect.

How the Today’s Market Affects Black Friday Used Car Deals

Used cars are not cheap, and it’s been that way for quite some time. In 2024, the average used car selling price is holding steady at $26,000. We track used car prices weekly here. That’s down slightly from last year but still high compared to historical norms. It’s shockingly difficult to find a decent used car with under 100,000 miles for under $20,000. High mileage cars come with additional risk. Remember, always get a pre-purchase inspection before buying a used car.  

Furthermore, auto maintenance costs are rising. Considering that used cars are more likely to require repairs in the near term, drivers have plenty of reasons to balk at today’s used car market. For these reasons and more, many car buyers are gravitating toward new cars this year, drawn by better financing offers and manufacturer incentives. 

That can actually play to the advantage of drivers determined to buy a used car. As more buyers gravitate towards new car deals, the demand for used cars weakens. In classic supply and demand fashion, this could translate to potential savings for Black Friday used car buyers.

Used Car Specials to Look for This Black Friday

While Black Friday is known for new car promotions, you can still find discounts on used cars at your local dealerships. It will just take a bit more effort to find them. Here’s what to look out for:

• CPO Financing Specials: Certified pre-owned (CPO) vehicles often qualify for special financing rates, especially at franchise dealerships. You’re less likely to find these specials at the ‘buy here pay here’ types of small dealerships known for high APRs. 
• Dealer-Driven Discounts: Some dealerships may offer big discounts on used car sticker prices on high-mileage or less popular used models to clear out older inventory.
• Trade-In Bonuses: Many dealers use Black Friday as an opportunity to boost trade-in offers, making it a great time to upgrade to a newer vehicle.

No matter what, always negotiate the out-the-door price. It’s the only way to avoid unpleasant surprises!

How to Find the Best Black Friday Used Car Deals

To snag the best Black Friday used car deals, focus on models that are 2-4 years old. These vehicles often strike the perfect balance between price, reliability, and manageable depreciation. Before heading to the dealership, use tools like CarEdge Insights to research local market prices, negotiability, and local inventory. A little prep work can make all the difference when it comes to negotiation.

Start your search early, as the best Black Friday deals often move fast. Check listings ahead of time on CarEdge Car Search and visit dealerships before the weekend rush. It doesn’t hurt to take a test drive, as long as you stick to your plan. While many sales events advertise discounts, negotiation is still key to drive home the most savings. If you don’t find the perfect deal on Black Friday, don’t worry. December’s year-end car sales often bring even greater savings opportunities.