While hordes of shoppers storm the doors of big box stores on the day after Thanksgiving, other bargain hunters go in a different direction, searching for even bigger Black Friday savings on the car lot.
"If you know what you're doing and you're prepared, you can get a great deal," says Matt Jones, senior editor of retail experience for Edmunds, who worked many Black Fridays as a car salesman.
Jones describes the car lot scene as "bedlam in a good way: lots of people, lots of cars." And as far as the dealership staffing goes, "It's all hands on deck." So knowing how to navigate the crowds, and interpret bargain pricing and incentives, is essential.
Information from Edmunds' data department shows that sales are slower early in November, as consumers prepare for (and perhaps save for) the Christmas season. But the day after Thanksgiving, the public's attention shifts to deal-making. As outlined by Edmunds, carmakers from Audi to Volkswagen are having Black Friday sales.
Bargains are available because of a perfect storm of conditions. Shoppers have come to expect all kinds of retail deals on Black Friday, and carmakers want to take advantage of that buzz. Thanksgiving falls at the end of the month and near the end of the year, and so Black Friday finds many dealers selling cars at a discount to meet sales goals from manufacturers. In turn, the carmakers offer generous incentives and rebates to move last-model-year inventory off the lots.
With such a confluence of factors, a shopper has to be prepared. Here are the top tips to survive the crowds and drive away in style:
Choose a Participating Dealership
Advertising frenzy notwithstanding, keep in mind that not all carmakers and dealerships have Black Friday specials. If the car you want is being sold by a local dealer, check its website or call to find out what discounts they're offering, and what time the dealership opens on Black Friday. Send your email address to the dealership's Internet manager so you can stay current on the offers. (To avoid clutter, consider setting up a free email account just for car shopping.)
Review Ads Carefully
Dealership advertisements will show what savings are available, but sometimes interpreting the ads can be difficult. apply to the car you want. Have those sites handy on your phone or print out any offers that interest you and bring them to the car lot with you. You can download the Edmunds app to price cars at the dealership and see special offers, and don't forget to check Edmunds True Market Value (TMV®) pricing to confirm that the advertised Black Friday savings are indeed as good as they sound.
Test-Drive and Choose Your Car Before Black Friday
Black Friday is for buying, not for research. You don't have a lot of time left this year, but try to schedule your test-drive before Thanksgiving. Black Friday traffic on the car lot will make it hard to get a thorough test-drive. And with all the activity around you, it may also be hard to concentrate on the vehicle's finer points.
Consider Your Trade-In Options
Because of the flurry of activity on the lot, Black Friday is not the best day to trade in. Consider a trip to CarMax before Black Friday to get a price on your current car. CarMax quotes are good for a week, so you can either sell your car there, or use the CarMax offer to size up what the dealer would give you. In any event, use the Edmunds appraisal calculator ahead of time to see private-party, trade-in and dealer retail values.
Know When (and if) To Negotiate
With plenty of shoppers on the car lot, dealers are unlikely to want to spend time in a lengthy negotiation. So if the advertised price is indeed a good deal, be prepared to wrap it up.
Get to the Car Lot Early
You don't have to wait in line overnight, but the earlier in the day you start your deal, the sooner you'll be home eating Thanksgiving leftovers. Often, you can conclude negotiations with the salespeople quickly, but there will almost certainly be a bottleneck getting through the finance department. The later in the day you begin the process, the longer it will take.
Clear Financing Hurdles Early
If you have strong credit, you should sail smoothly through the financing process at the dealership. Still, to speed things up, you could call a day ahead of time and ask to fill out a credit application. If your credit is marginal, look for pre-approved financing from a bank or credit union. This will tell you the interest rate for which you qualify and will put you in a stronger negotiating position. You can still accept dealer financing if the rates are lower, and there's a good chance they will be, at least for shoppers with excellent credit. Zero-percent financing offers are plentiful this year.
Come Prepared for a Long Stay
While the savings are high, the wait could be long. Bring food, water and your smartphone charger. And it's not a bad idea to dress comfortably, particularly when choosing your shoes.
Final Thoughts
Being prepared, getting quotes and checking pricing guides are essential steps to take. But Black Friday is a one-of-a-kind shopping day on the car lot. Be ready to adjust to changing situations and unexpected offers. Above all, don't be rushed into buying a car just because you are caught up in the hysteria of a seemingly good deal. Many of the manufacturer offers are good through the end of the month — some until the new year. So buy the car that's right for you, at the right time.
