Three-day holiday weekends like Labor Day are a great time to find deals on new cars, according to car-shopping experts.
According to an Edmunds review of the best times to buy a car, shoppers should target three-day holiday weekends, like the upcoming Labor Day weekend, to find deals on new cars because dealerships typically offer steeper discounts to take advantage of increased foot traffic.
Manufacturers also typically slash prices on cars from the previous model year around this time to make room for newer vehicles, making it an especially good time to go car shopping.
Edmunds notes that holiday weekends can bring busier-than-normal showrooms. It recommends doing research and test-driving before the holiday, then closing the deal during the weekend or on the first weekday afterward.
Why Are There So Many Closeout Car Deals Around Labor Day?
Edmunds said car buyers can still find good deals on new cars and sometimes secure lower interest rates as summer transitions into fall because dealerships are motivated to make room for the newest models.
Edmunds analysts say August and September are when automakers generally make the biggest transition to new models. In past years, summer has corresponded with a bump in incentives, particularly low-APR financing on outgoing model-year vehicles.
But car buyers can also find good deals on new model-year cars at the end of summer. Edmunds says an incoming model-year car has occasionally had better incentives than an outgoing model, particularly for shoppers looking to lease. Comparing features and pricing across both model years can help you spot the better value.
Carmakers have offered an average discount of nearly 3% in the past five Septembers, according to Edmunds.
What Other Labor Day Car Deals Are Available?
At least one used-car retailer, Hertz Car Sales, is offering up to $750 off used vehicles nationwide through Sept. 8. To qualify, drivers must use the code LDW750 when shopping for used cars on the company’s website.
Even though automakers are starting to roll out new 2027 models, the vast majority of cars on dealership lots are still 2026 models, according to CarGurus.
As of Sept. 1, nearly 90% of new cars on U.S. dealership lots were 2026 models, up from nearly 72% of cars at the end of August 2025 that were from that model year.
Trucks have the highest number of available 2026 vehicles, which could be good news for pickup shoppers looking for a Labor Day deal. CarGurus said these models had the highest 2026 supply heading into Labor Day:
- Chevrolet Silverado 1500
- Ford F-150
- GMC Sierra 1500
- Ford Explorer
- Jeep Wrangler
Offer details and inventory can change. Compare the total purchase price, financing terms and fees rather than focusing only on a discount.
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