Looking for a new car that offers the most for your money right now? Because of various market conditions, there are six models you may want to check out!
The humble four-door sedan is having a moment right now — and not in a good way. Customer preferences are changing and the sedan is no longer the go-to vehicle for families and other motorists that it once was.
“Sedans are unloved,” money expert Clark Howard says. “It’s almost like they’re dinosaurs in the car market. The auto market has shifted so fast that it’s caught automakers flat-footed [with too many sedans.]”
Here are the sedans with the deepest discounts today
A new report from the Associated Press finds the following sedans are sitting around on dealer lots for 33% longer than usual, so dealers are motivated to let them go at prices much lower than normal.
2018 Acura TLX
Average MSRP: $40,037
Average savings: $4,214
2018 Chevy Impala
Average MSRP: $35,271
Average savings: $1,980
2018 Dodge Charger
Average MSRP: $40,854
Average savings: $1,449
2018 Toyota Avalon
Average MSRP: $39,180
Average savings: $3,442
2018 Toyota Avalon (hybrid)
Average MSRP: $42,454
Average savings: $3,991
2018 VW Passat
Average MSRP: $27,588
Average savings: $2,392
Why are sedans such a bargain right now?
You may have heard that Ford has decided to exit the passenger car business and only make crossovers, SUVs and trucks for the U.S. market.
Ford’s not the only one. Chrysler makes almost no passenger cars to be sold in the U.S. anymore. And with GM, although they still sell passenger cars, the emphasis is on the light truck market with its various brands.
Meanwhile, certain foreign nameplates that also sell in other markets and still happen to be car-oriented have been caught with a big oversupply at a time when few American buyers want sedans.
So the discounts are getting bigger and bigger as both manufacturers and dealers try to move those cars.
The discounts are coming multiple ways, according to Clark. First, they’re coming on select new cars. Certain Japanese and German nameplates are having to offer manufacturer incentives right around 10% of the value of the vehicle. That is a huge number.
It means that a $30,000 car would come with $3,000 in incentives from the manufacturer, Clark says. That’s before you even get to the dealer. And most dealers receive additional kickbacks from the manufacturer based on how many units they sell. That puts them in a position to need to wheel and deal.
“The invoice price has become fiction because with a passenger car, the dealer could sell you a car way below the invoice price and still make a decent profit on the sale of a sedan,” the consumer champ notes.
“I never recall a circumstance where one part of the market was so strong while other parts are so weak,” Clark says of the disparity between the popular SUV/crossover/truck market and the ailing sedan market.
“There is always money to be saved when you zig when everybody else zags,” he continues. “So if you are happy driving a car and don’t care about what’s hot in the auto market, this is your time right now.”
Do you know the right way to buy a new car?
The days of going to the dealership and haggling are over. Clark has step-by-step instructions for you to follow if you want to buy a new car.
Of course, the money expert routinely recommends that auto shoppers buy a two- or three-year-old used car and keep it for three to four years. That way, you avoid the costs of depreciation and you may be able to pay cash for an affordable used car instead of paying interest on a loan for a new ride.