US car buyers expected to reach 87 million this Labor Day

Approximately 87 million Americans are expected to shop for vehicles during the Labor Day weekend, according to research from WalletHub. This period is considered a strategic time for buyers due to the intersection of end-of-summer sales urgency and the arrival of new model years.

Automakers often provide incentives to clear existing inventory to make room for upcoming lineups. These incentives can include lower lease payments, financing rates below the market average, and cash-back offers. Kelley Blue Book has noted that Labor Day is a favorable window for purchasing because sellers frequently utilize rebates and special financing to meet seasonal sales targets.

Despite these potential savings, affordability remains a significant challenge. New vehicle prices remain historically high, and fewer buyers are earning under $100,000 annually compared to previous years, as income growth has struggled to keep pace with rising automotive costs.