How Buyers Can Save Money When Shopping for SUVs

SUVs are extraordinarily popular in the United States and Canada, and the competition means big savings for drivers.

That’s largely because many of the most popular models have similar or identical feature sets. Seniors can easily compare models across brands to prioritize bargains and incentives. Two SUVs from competing brands may not be very different when the driver gets behind the wheel, but one might be much less expensive.

Of course, some drivers will prefer types of vehicles, and some incentives are better than others. In other words, research is still crucial. Some things to consider:

• Incentives aren’t tied to a single type of SUV. Luxury vehicles, budget-friendly crossovers, and utility-heavy models have one thing in common: They need to be cleared out of the lot to make room for 2021 stock.
• Customer financing options are incredibly flexible. Shoppers should consider all available incentives and do some quick math to make accurate comparisons. A $3,000 cashback incentive might be a great deal, but 0.0 percent APR financing for an extended period (currently available on some Jeep vehicles) could end up yielding greater savings in the long run.
• Many brands offer special savings at the end (and beginning) of the year. For example, Jeep’s Employee Pricing for All campaign can knock thousands of dollars off the cost of a 2020 SUV. Chevrolet is running a similar program, dropping prices significantly.
  
  When combined with financing and cashback offers, these deals quickly add up. However, savings events are intended to move stock — they’re not expected to last deep into 2021.
• Different locations will have different bargains. Seniors can find great deals anywhere, but remember that dealerships operate independently, while manufacturer incentives tend to be available nationwide.
  
  That means that shoppers should look for local online ads, which may offer exclusive deals that can be combined with manufacturer incentives for incredible pricing.

Off-lease SUVs and crossovers offer money-saving opportunities, so anyone considering a new vehicle should check local dealerships right away.

Why Many Dealerships Are Trying to Move SUVs and Crossovers Online

Another factor has played a big role in the current “perfect storm" buyer’s market: Many consumers aren’t comfortable heading out to dealership lots. The pandemic has limited foot traffic, which prevents some dealerships from making their best direct sales pitches — to clear inventory, some dealerships have been forced to promote deals, rebates, and other incentives online.

As The New York Times reported in May, General Motors said that 85 percent of its dealers in the United States use its “Shop Click Drive" e-commerce system. That’s a dramatic increase from pre-pandemic levels, and GM isn’t alone; Honda, Hyundai, and other brands are exploring e-commerce to meet consumers' demand for online purchases. For senior drivers, that means that shopping online is now a viable option.

And dealerships are particularly interested in moving SUVs and crossovers, since utility vehicles outsold sedans two to one in 2019. Put simply, dealership lots have plenty of SUVs on hand, and they’ll need to move them quickly.

The Key Factor for Finding Excellent Deals on SUVs and Crossovers

As mentioned above, smart shoppers can maximize their savings by comparing different models and focusing on incentives. Online research is a crucial factor in making accurate comparisons. Some end-of-year deals are only accessible for drivers who click on online ads — dealership websites may not show all available incentives.

Exclusive ads are often specific to the shopper’s location. Incentives may include enormous cash allowances, lease incentives, and rock-bottom financing deals, most of which will be focused on the 2020 stock. Seniors should be willing to explore different brands and models, and unfortunately, they’ll need to do a small amount of math to calculate the total value of the available incentives.

The good news: Online shopping cuts out the pushy salespeople. Many dealerships are also offering no-obligation test drives; the vehicle is delivered directly to the customer’s home, allowing for safe, low-stress shopping.

The Buyer’s Market for SUVs May Not Last Into 2021

The conditions caused by the pandemic won’t last. The economic slowdown caused manufacturers to re-think their promotional strategies and adopt online sales, but dealerships have adapted quickly. While sales lots will likely have plenty of 2020 inventory for the next year, there’s no guarantee that the sales will last.

Seniors are well positioned to take advantage of those incentives. Older buyers can use the market to avoid high-interest loans and expensive leases, and by researching carefully online, they can find brand-new vehicles for pennies on the dollar. The first step is to collect as much information as possible, comparing at least 3-4 different brands before making a decision.