BLACK FRIDAY 2024: Looks Like Another Year Of Leftovers From The Island Of Misfit Toys.

As Black Friday approaches in 2024, car buyers might be gearing up for the kind of blockbuster deals we've seen in previous years, but this year's offerings are falling flat. Instead of the anticipated deep discounts, shoppers are encountering Black Friday car deals that are more whimper than bang. Here’s why:

Firstly, the automotive industry has been dealing with an unusual supply situation. While there was an expectation of a surplus leading to significant markdowns, the inventory isn’t as high as one might think. According to market reports, while there is an 81-day supply of new cars, which seems substantial, this is a slight decrease from earlier in the year. This moderate inventory level means dealers don't feel the same pressure to slash prices drastically to move vehicles off the lot.

Secondly, despite economic conditions suggesting a potential for hefty discounts, the deals primarily focus on financing rather than outright price reductions. Offers like 0% APR or low monthly lease payments sound appealing, but they often come with fine print that restricts them to only specific models or require substantial down payments. For instance, while Tesla offers 0% APR on the Model Y, it's for a limited term, and not all buyers will qualify, which waters down the deal's attractiveness.

Moreover, the strategy of offering competitive financing rather than price cuts directly impacts the perceived value of Black Friday car deals. Financing incentives, while beneficial for those with excellent credit, do not necessarily make cars more affordable for everyone. Buyers might end up with a lower monthly payment but could still be paying more over the life of the loan if they don't pay off the car early.

Lastly, there's a sense that the automotive market is playing it safe. Manufacturers and dealers are perhaps wary of overcommitting to discounts in a still-recovering market from supply chain issues. Instead of aggressive pricing, the focus has shifted to moving specific models with targeted incentives, which doesn't cater to the broad desire for universally appealing Black Friday sales.

In essence, the lukewarm Black Friday car deals of 2024 reflect a cautious industry navigating post-shortage inventory levels and economic variables, leaving many consumers underwhelmed by what should be one of the year's biggest shopping events.

Let us know in the comments your opinions and if you're in-market this year end and what you're buying...