Car-Buyers Holding Out for Memorial Day Bargains, Reports Edmunds.com

SANTA MONICA, Calif.--Edmunds.com, the premier online resource for automotive information, expects that Memorial Day weekend car sales will be especially strong this year.

New car sales have been relatively weak so far this month, suggesting that in May SAAR may drop slightly from April's 11.2 million. However, Memorial Day weekend is traditionally a great opportunity for discounts, and buyers have become conditioned to expect them.

"Over the past week we've seen a notable uptick in the online activity linked to purchase intent," explained Edmunds.com CEO Jeremy Anwyl. "Given the bargain-hunting behavior we've witnessed throughout the recession, I'm guessing that demand is building for anticipated Memorial Day sales events."

So far in May, the average incentive is down about $200 per vehicle sold compared with April, but it is not unusual for automakers to launch holiday weekend deals at the eleventh hour.

"Ironically, car shoppers motivated by the expectation of discounts don't always pay less for their cars," noted Edmunds.com Senior Analyst Ray Zhou, PhD. "During the Chrysler and GM bankruptcies, the Toyota recall crisis and other significant periods when one would expect discounts to be rampant, we actually saw transaction prices for new cars rise. On those occasions, it is likely that many people didn't do as much research or negotiation as they could have."

About Edmunds.com, Inc. 

Edmunds.com Inc. publishes four Web sites for automotive information, launched in 1995 as the first automotive information Web site. Its mobile site, accessible from any smartphone at www.edmunds.com, makes car pricing and other research tools available for car shoppers at dealerships and otherwise on the go. InsideLine.com is the most-read automotive enthusiast Web site. Its mobile site, accessible from any smartphone a www.insideline.com, features car photos and videos. CarSpace is the most established automotive social networking Web site. AutoObserver.com provides insightful automotive industry commentary and analysis. Edmunds.com Inc. is headquartered in Santa Monica, California, and maintains a satellite office in suburban Detroit..