Memorial Day weekend could be a record-setter for truck sales at your local dealership. With pickups sales spiking in recent months and car salesmen offering low interest rates and significant Memorial Day cash, new or pre-owned trucks could be the big-ticket talk of the weekend.
Despite High Demand, Heavy Discounting is Rampant
While demand is surely high (according to AutoNews, sales of large pickup trucks rose 27% during the month of April and are up 20% for the calendar year) Memorial Day offers a perfect storm of special deals on top of a strong recent discounting trend.
Large trucks were discounted in April at an average of 11.4% below MSRP (manufacturer’s suggested retail price), by far the steepest average discount of 15 auto categories.
Of the top makes discounted in April, Ram – the exclusive truck division of Chrysler – led the way by slashing an average 10.3% off MSRP. Ford and GMC, two other legendary American car companies heralded for their trucks, placed in the top 5 with respective discounts of 9.4% and 8.0% below MSRP. Auto incentives were also up 0.9% in April 2013 from last year, according to TrueCar.
Add all this information together, and the data suggests that all across the auto industry, large trucks are being sold for very consumer-friendly prices.
What We’ll See on Memorial Day Weekend
These deals are only expected to be sweeter on Memorial Day weekend. Being late in the month, sellers recognize the weekend as one of the last opportunities to hit monthly sales goals. Indeed, Memorial Day has become a better time to buy in recent years, as TIME explains, and consumers can expect to take 15% – 20% at least off MSRP on the best deals.
Leading truck models, however, were already retailing for close to 15% – 20% off MSRP in April. The 2013 Chevrolet Silverado 1500 was selling for an average of 13.6% off MSRP, and the 2013 Ford F-150 was exchanging hands for an average of 12.6% off MSRP.
These already high discounts mean that consumers can expect to see the best truck deals to meet or even exceed 20% off MSRP.
To drive a truck off the lot for a low price, consumers should look for Memorial Day deal staples such as 0% financing (for up to 60 months for the lucky creditworthy few), Memorial Day cash back offers of $750, and $500 bonus cash for eligible members of the military.
What’s Driving these Banner Truck Deals?
These special Memorial Day truck deals that won’t be easily found again until Labor Day or Black Friday weekend. What’s behind the heavy discounting, in spite of the high demand for full-sized pickups?
The simple answer is competition. Many Americans who put off major purchases during the recession and years after are just reentering the auto marketplace, providing an unusual glut of sales opportunities. As home prices have rebounded, too, contractors and construction businesses have increasingly looked to upgrade or expand their fleets.
Auto manufacturers, fresh off a series of big wins, have been emboldened about long-term prospects and see the current climate as ripe for capturing customers and converting them to lifelong brand aficionados. While dealerships are not as desperate to move trucks off the lots as during the recession, they also are quite aware that they’ll be undercut by dealers across the street if they don’t offer competitive pricing.
Truck sales are also incredible valuable to the Detroit 3 (Ford, General Motors and Chrysler). Some analysts estimate that full-size pickups sell at profit margins 10 times as high as sedans. There’s also a reputation factor, too. Pickup trucks are iconic in America, emblems of farming and blue-collar hard work.
High consumer demand, coupled with aggressive dealership pricing, adds up to a potentially record-setting Memorial Day weekend at the dealerships – great news for car companies, American manufacturing, American consumers and pickup truck lovers.
With all the above in mind, here’s a few of the best truck deals for Memorial Day. Keep in mind that deals and sales can vary considerably across different locations and dealerships.
|Make/Model||Memorial Day offer|
|2013 GMC Sierra||0% APR for 60 months, $9250 trade in total value|
|2013 Chevy Silverado||$9250 trade in total value|
|2013 Toyota Tundra||0% APR for 60 months, $1000 bonus cash|
Data according to car company’s national website.