Labor Day Car Buying Insurance Guide

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Labor Day car buying discounts and deals are common and can make already expensive cars a bit more affordable for car buyers. This guide provides a comprehensive overview of car buying and insurance options available in honor of the Labor Day holiday. 

From special financing rates and lease deals offered by major automakers and dealerships to tips on insuring both new and used vehicles, we’ve got you covered.

Key Takeaways

  • Labor Day car buying deals often feature discounts on various car models from manufacturers like RAM, Hyundai, Nissan, Toyota and Honda.
  • Examples include 1.9% financing for a Ford Mustang for 72 months and $1,000 bonus cash or $459 monthly for 48 months with $5,299 due at signing for an Acura RDX.
  • Auto insurance companies may offer a grace period of up to 30 days to add a newly purchased car to an existing policy.

Is Labor Day a Good Time To Buy a Vehicle?

Labor Day weekend car buying discounts are all over the place. RAM, Hyundai, Nissan, Toyota and Honda all have deals that can help save you money, with some dealers offering 1.9% financing for two years. Others are offering bonus cash incentives up to $3,000. There are lease deals available as well.

Do Car Dealerships Offer Discounts on Labor Day?

According to CARFAX, many major automotive manufacturers and dealers are offering Labor Day deals on select models in 2023, including Acura, Cadillac, Ford, RAM and Toyota. We have listed them below but keep in mind that the dealers may not apply across the board and may be available only at participating dealerships.[1]

Vehicle Type

Labor Day Deal

Acura RDX

$459 per month for 48 months with $5,299 due at signing

Alfa Romeo Tonale

7.96% financing for up to 60 months

All used 2018-2021 BMW certified pre-owned (CPO) models

4.99% financing for 36 months and no payments for 3 months

Buick Encore GX

$169 per month for 24 months with $6,209 due at signing

Cadillac XT4

1.9% financing for 36 months plus $500 bonus cash

Chevrolet Silverado 3500

1.9% financing for 36 months, or $500 cash allowance

Chrysler Pacifica Hybrid

$783 financing per month for 39 months with $4,749 due at signing

Ford Mustang

1.9% financing for 72 months and $1,000 bonus cash

Dodge Challenger

6.9% financing for 72 months, or $2,000 cash allowance

Genesis GV60

$599 per month for 36 months with $5,999 due at signing

GMC Sierra 3500

3.9% financing for 60 months

Honda Accord Hybrid

$359 per month for 36 months with $3,699 due at signing

Hyundai Santa Fe

3.29% financing for 60 months and $1,000 bonus cash, or up to $2,500 cash back

Infiniti QX50

$549 per month for 36 months with $6,449 due at signing

Jeep Cherokee

7.96% financing for 60 months and $1,000 bonus cash

Kia Sportage

$259 per month for 24 months with $3,499 due at signing

Lexus UX Hybrid

$499 per month for 36 months with $3,999 due at signing

Lincoln Navigator

3.9% financing for 72 months and up to $3,000 bonus cash

Mazda CX-30

$288 per month for 33 months with $2,999 due at signing

Mitsubishi Outlander

3.9% financing for 72 months or up to $1,000 cash back

Nissan Rogue

$309 per month for 36 months with $4449 due at signing

RAM 3500

7.96% financing for 72 months and $1,500 bonus cash

Toyota Camry

3.99% financing for 48 months, or $750 cash back

Volkswagen ID.4

$349 per month for 39 months with $4,999 due at signing

Source: CARFAX

How Do I Insure a New Car on Labor Day?

Insuring a recently purchased new or used car is a straightforward process and can often be completed before you even take the vehicle home. Contact your car insurance provider and provide them with details about the purchase, including the Vehicle Identification Number (VIN) and lender.

If you have an existing auto insurance policy, many companies offer a 30-day grace period for adding a new or used car to your current policy, providing short-term coverage for your vehicle.[2]

All you need to do then is show proof of insurance to the dealer and they’ll hand you the keys. Just be sure to add your vehicle to your auto policy as soon as possible to avoid the consequences of driving without insurance.

How Much Insurance Do I Need for My Vehicle?

Most dealers will not allow you to drive off the lot in your new car until you show proof of insurance that meets your state’s minimum coverage requirements. Liability insurance is required in most states with the limits differing from one location to another. For example, Alabama requires its drivers to carry $25,000 for bodily injury per person, $50,000 for bodily injury per accident and $25,000 in property damage (25/50/25).[3] California drivers are required to have 15/30/5.[4]

Meanwhile, New Hampshire doesn’t require insurance as long as individuals can prove financial responsibility. Those living in Virginia are required to pay an uninsured motorist fee in order to forgo auto coverage. Check with your state’s insurance department to find out what your insurance obligations are.

How To Get the Best Deal on Insurance

Many drivers can get a better deal on their car insurance rates by leveraging discounts, increasing their deductible and shopping around.

Take Advantage of Discounts

Car insurance discounts are one of the easiest ways to lower your insurance rates. Here are some common ones that your carrier may offer:



Anti-theft discount

Your vehicle is equipped with anti-theft devices

Automatic payment discount

Your premiums are paid on an autopay schedule

Bundling insurance discount

Purchase multiple types of policies from the same insurance company

Defensive driving discount

Complete an eligible defensive driving course

Distant student discount

An insured student is attending college at least 100 miles away (mileage may vary)[5][6]

Good driver discount

Maintain a driving record free of violations and accidents for a certain number of years

Good student discount

Show proof of good grades in college or high school

Low-mileage discount

Drive below a certain number of miles each year

Loyalty discount

Stay insured with the same company for a certain time

Military/Veteran discount

Be active-duty military or a veteran

Multi-car discount

Insure at least two vehicles on the same policy

New vehicle discount

Your vehicle is new

Organizational discount

Belong to a certain club, employer, university or other organization

Paperless discount

Opt in for paperless mail

Pay-in-full discount

Pay your premium in full instead of multiple installments

Profession-based discount

Be of a certain profession

Telematics discount

Agree to have your driving data tracked and earn a discount based on how safely you drive

Raise Your Deductible

The premium you pay for coverage is based in part on your deductible. If you’re a safe driver with a clean driving record, you can probably get away with opting for a higher deductible so you can enjoy lower monthly premiums. Just keep in mind that your out-of-pocket costs will be higher if you do get into an accident.

Shop Around

One of the simplest ways to save on auto coverage is to shop around using SmartFinancial. All you need to do is answer a quick questionnaire about your budget and coverage needs, and you’ll get matched with an auto policy. Rates will differ from one insurance company to another so see which one gives you the best value for the coverage you need.

Ready To Shop for Car Insurance?


Should I shop around for car insurance on Labor Day?

It's a good time to shop around for car insurance whenever you have a vehicle that isn't insured, Labor Day or otherwise. Just make sure you go with a reputable provider with good customer reviews who offers the coverage you need.

Are there Labor Day car insurance discounts?

There typically aren’t Labor Day deals on car insurance. However, insurance carriers will offer several discounts to their customers year-round.

Do cars get cheaper around holidays?

Some of the best new car deals are often around the holidays. Always look for deals around Martin Luther King, Jr. Day, Memorial Day, Labor Day, Christmas and New Years.


  1. CARFAX. “Best Labor Day Car Sales.” Accessed August 28, 2023.
  2. Grange Insurance. “Buying a Car? Update Your Insurance.” Accessed August 24, 2023.
  3. Alabama Department of Insurance. “Automobile Insurance FAQs.” Accessed August 24, 2023.
  4. California Department of Motor Vehicles. “Insurance Requirements.” Accessed August 24, 2023.
  5. American Family Insurance. “Car Insurance Discounts.” Accessed August 28, 2023.
  6. Allstate. “Car Insurance Discounts for College & Teen Drivers.” Accessed August 28, 2023.

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