Dealerships Responding to Uncertain Climate

Car dealerships have been hesitant to sell online. The reason: When drivers visit a physical dealership, salespeople have a captive audience. They’re able to explain features, financing options, and trim packages — and pressure drivers to make a quick decision.

That changed in 2020. The pandemic prompted many dealerships to move their operations online, which provides buyers with a major advantage. By researching vehicles, you can understand the actual value of each vehicle, learn about your options, and spot the best available deals.

As e-commerce offerings have expanded, dealerships have marketed aggressively. In 2021, many brands offer competitive incentives including:

• 0% Financing- Some brands offer no-interest financing for up to 7 years, drastically reducing the cost of ownership.
• Cash Back- Cashback deals can knock up to $6,500 off of the price of a new car at signing, and some brands offer low- or no-interest financing along with cashback programs.
• “Price Match" Guarantees- Some independent dealerships offer price matches for certain vehicle models. That means that if you’re willing to study the competition, you can make sure you’re getting a great value.

Incentives vary from brand to brand, and some aren’t available to all buyers. That’s why research is so important; to take advantage of the unprecedented market, you’ll need to arm yourself with information.

What to Know When Comparing 2021 Dealership Incentives

When purchasing a new vehicle, you’ll need to study incentives carefully. Look at as many dealerships as possible, using online advertisements to find incentives and special pricing. Try to calculate the actual value of each incentive — a 0% financing offer might save you much more than a $6,000 cashback offer, but you’ll need to do some quick math to find out.

Remember, major car brands are extremely competitive, and some models are comparable from brand to brand. In other words, if you’re looking at 2021 SUVs, you might find two nearly identical models from different manufacturers. That makes comparison shopping much easier for savvy buyers.

Start your search by looking for dealerships in your area. Again, online resources make this process easier. Many dealerships don’t offer their best deals on the homepages of their websites, but the resources on this page may help you find the most competitive incentives. Keep detailed notes — look for at least 3-4 options before you make a decision.

Many Dealerships Offering Bargains on 2020 Vehicles

While drivers can find excellent bargains on 2021 models, many are also looking to clear out last year’s inventory. The pandemic disrupted the market for new vehicles, leading to a surplus of 2020 cars & SUVs on many lots.

That’s an excellent opportunity for buyers. Most car companies don’t drastically redesign their models from year to year, but dealerships are still under tremendous pressure to keep the newest vehicles in stock. By opting for last year’s model, you may be able to get a brand-new car or SUV for pennies on the dollar — and you’ll probably still have access to top-tier incentives.

If you’re tempted to buy a 2021 vehicle, find out whether the dealership offers the previous-year model. Compare prices and find out whether purchasing incentives (such as special financing) are available for both. Pay close attention to vehicle features and consider test driving each; many online dealerships now offer contact-free test drives, and most will bring the vehicles straight to the buyer.

Look Online to Find New Vehicles with Great Incentives

The internet has changed the way that dealerships market and sell their products, and the most dramatic changes have occurred over the past year. You can take advantage of the current atmosphere with careful shopping, but you’ll need to start your search soon. Dealerships are quickly adapting to the new market.

Study as many local options as possible, using online resources to learn about special financing, cashback offers, and other incentives. Remember to look at both 2021 and 2020 models. Don’t restrict your search to a single brand; by studying the market, you’ll gain a better understanding of your options, which can be enormously helpful when you’re negotiating.

With some research, you can find a brand-new vehicle for much less than you’d pay at a physical dealership — and in many cases, you’ll be able to get your vehicle delivered directly to your home.