Memorial Day Car Sales: What You Need to Know

5/22/2026

Memorial Day is historically one of the biggest car sales events of the year. It's the trifecta of timing: dealerships are pushing to meet month-end sales quotas, manufacturer incentives are rolled out nationwide, and dealerships are motivated to clear out their current inventory to make room for incoming Fall models.

What does this mean for you, the car buyer? The potential for a great deal!

And when car shopping, it pays to be informed. That's why we've compiled a list of things to be aware of and to take into consideration while searching for your next ride.

Here's what to know before you go to the dealership:

1. Do Your Research

Research the make and model of the vehicle(s) you like. Have there been any manufacturing recalls? How much is the estimated maintenance and upkeep of this model? What are the anticipated insurance costs? What type of gas does it need (diesel, premium, etc.)? The answers to each of these questions will be helpful in understanding the cost of the vehicle beyond the lot's ticket price.

2. Down Payments = Lower Payments

The more money you put down up front, the less you need to finance. A down payment reduces the total amount you need to borrow (principal balance), which can lower your monthly payments and even lower the interest you'll pay over the life of the loan. A larger down payment can also help you keep more equity in your vehicle. Down payments can be cash, a trade-in vehicle, or a combination of both.

3. Have an Idea of What Your Payment Will Be

Multiple factors affect the monthly payment of your auto loan: credit score, interest rate, down payment, amount financed. Before stepping onto a car lot, know your budget and how much you can reasonably spend. Understand that your credit score plays a major role in the rate you receive and the overall cost of your loan. For an example of how your credit can affect your rate, here are two scenarios:

Example 1: If your credit score is 700 or above, and you finance $30k over 84 months with us, your monthly payment could be: $435.

Example 2: If your credit score is below 650, and you finance $30k over 84 months with us, your monthly payment could be: $601.

4. Understand What 0% Really Means

Promotional offers (common over Memorial Day Weekend) like 0% financing may sound appealing, but factors such as vehicle price, fees, and loan terms can affect the overall cost. 0% APR car loans typically come with a higher price tag, expensive extras and strict terms. To make sure you're getting the best deal, it’s a good idea to compare rates from your credit union.

5. Be Cautious of Unecessary "Extras"

While some add-on products sold at the dealership can be useful, others may not be right for you. Make sure to read the fine print to understand any back-end products offered to you.

Bonus Tip: Refinance if Needbe

Get locked in to a rate you hate? We understand. Sometimes it's easiest to finance at the dealership and you end up walking a way with a rate that you think could be better. If that happens to you, bring your first statement to us and we'll see if we can refinance to get you a better deal!

And most of all, remember that here at Florence Federal Credit Union, we are here to help YOU! Know you want a new car but need help tracking down a make/model that fits your budget? Give us a call! Our Loan Officers are local, knowledgeable financial professionals that care about finding the best fit that works for you.