Best New Car Incentives, Lease Deals for September 2023

Those looking to buy or lease a new car in September are in for some good news finally! Inventories on new vehicles have been rising and used car prices have been coming down for some vehicles. September is usually a time when car sales pick up and deals start getting better, so even though we still have supply shortages on some new vehicles, dealers will be more likely to negotiate on price and we may see some special deals for Labor Day.

It has become normal over the past couple of years for new car shoppers to be paying MSRP and even higher for vehicles. We're starting to see this change with more incentives and more willingness for dealers to negotiate. And it doesn't mean great deals aren't available this September - it always depends on the model, which is why you should really consider more than one vehicle when shopping for a deal. By getting bids from multiple dealers, you increase your chance of finding a "desperate" dealer that is willing to negotiate.

Adding uncertainty to all of this is ongoing world conflict and rising interest rates. Interest rates have made monthly payments much higher, which makes affordability of news cars much harder. On top of this, lenders are becoming more strict with who they loan money to. Rejection rates for auto loans are at all-time highs, especially car shoppers with credit scores below 690 - it's a great time to be a cash buyer however!

Interest rates are anywhere from 6 - 10% on new cars even if you have good credit, but some manufacturers are still offering 0% financing on some vehicles in September. We've actually seen an uptick in finance deals being offered, which seems to be the main way manufacturers are offering incentives right now. Many have also introduced loyalty bonuses, so if you do have a lease return coming up, this could put an extra $1,000 to $2,000 in your pocket.

Used car prices were finally starting to head down in a meaningful way, but they are still much higher than they've historically been and the prices at auction have been inching back up over the past month or so. This is great if you have a car you can sell or trade-in right now, but if you need to buy one at the same time, it kind of washes away the extra profit. The best case scenario would be to sell your used car now, and wait a few months to buy a new one.

My advice right now: If you don't need a new car anytime soon and have the luxury of waiting, then start compiling price bids now but push your purchase out a few months. We should see increases in manufacturer incentives once we start getting back into a more normal pace of production and as new car inventory starts building back up.

(Note: incentives can vary greatly by region; these figures may not be accurate in your local area. Always verify with your local dealers)