Buying a car is an important decision that we make once every few years. Though we make that decision a few times in our lives, every time, it entails a fair amount of time and effort because there is so much planning involved in it.
One of the first things we plan is money. How can we get the best deal when we buy a car? Which is the best time of the year to buy a car, so you can get deeper discounts and get to save some money on your monthly car loan payments?
Well, let’s find out.
End of the Model Season
If you are on a tight budget and want to buy only a particular car model, your best option is to wait till the end of the model season.
Every car company doesn’t sell the same model for many years and there are many reasons for it. First off, the same model gets boring for customers. Since variety is the order of the day, car companies want to give as many choices as possible to customers. This is why, they keep introducing new models with more colors and features in order to retain and entice their customer base.
The second reason is that automobile technology is growing at a rapid pace. What feature seemed to the be the coolest and latest a year ago is almost normal within a few months of its release. In other words, technology gets outdated really fast, so car companies are forced to come up with new models that have the latest technological developments included in them.
The third most important reason is competition. Since car companies are vying with each other to attract customers, they want to do everything possible such as experimenting with new features and designs.
Due to a combination of all these factors, car companies tend to release a new model at the end of summer season and beginning of fall. This is the time when everyone settles back into a routine after the summer vacation, so car companies believe this is the best time for customers to buy. Remember, they have done a lot of research with respect to this timing!
As a buyer, if you are not particular about the latest design and don’t mind missing out on some of the latest features, your best bet is to buy the model you want end of August and early September. When car companies introduce new models, they want customers to focus their attention on these latest models since they have better features.
The idea is that when you offer a superior car, customers will obviously prefer that model. So, the less superior ones (those that may have some features missing) are given away at discounted prices, so they can get rid of old inventory and make space for the new models.
This is why buying a model at the end of its season, which is typically, early September, can help you to save some money.
If you miss out on early September deals or if you prefer to buy the latest model loaded with the latest features, the holiday season is the right time of the year to buy.
Car companies want to promote their models and make as much sales as they can, and this is why they tend to pick the holiday season for giving deep discounts on their latest car models.
Another advantage is that they holiday season is the end of the financial year and this means, many car dealers would be willing to go that extra mile to get rid of some of their old inventory. This translates to deep discounts and it also gives you the choice to bargain with the dealers to get a car at the rate you want!
For these reasons, the holiday season, which is December is the best month of the year to buy a new car, provided you can wait that long.
There at times when you can’t wait until the holiday season to buy a car because your car is broken or you need something new right away. Whatever may be your reason, do some research before buying a car. And this research is not about the car, but rather about the dealers who are selling them to you.
For example, if you know a dealer who has not sold many cars in a particular week, month or quarter, approach them and ask for deep discounts. The chances that you will get the discount you want is high because car dealers are under immense pressure to meet their sales targets. Some of them may even decide to sell the car at a little profit margin for themselves, just to ensure that their track record is maintained. So, this is one way to get a good price on the car you want.
When you can’t find any struggling car dealers or if you don’t know anyone who can give you that kind of information, buy a car at the end of the month or a quarter. A rule of thumb is many car dealers will be willing to offer a discount price when you buy at the end of the month or quarter, again just to improve on their sales record. They may not bother so much about their profit margin during this time. This is why it could prove to be beneficial for you.
So, overall the best month of the year to buy a car is December if you want to buy the latest car model. On the other hand, if you are willing to compromise a bit and opt for an older model that doesn’t come with all the latest features, your best time is September because that’s the time new models are introduced and dealers will be willing to sell off their old inventory at discounted prices.
For some reason, if you think you can’t wait until September or December, consider waiting for the end of the month or a quarter, as car dealers may be willing to give you extra discounts to boost their sales record. if you know any particular car dealer who has not made good sales, you can talk to them for a discount because it will work well for both of you. When you buy from such a person, you’re not only getting a discount, but you’re also helping the car dealer to reach his or her targets.
Worst Time to Buy a New Car
The worst time of the year to buy a new car is spring because that’s when people are loaded with cash refunds. So, car dealers will have high demand and the chances for discounts is low.
The above arguments make sense for new cars, but do they apply when you want to buy a used car?
Not really because the used cars market is less fluctuating than the new cars market. Essentially, what this means is that used cars remain the same all through the year. Car dealers do not have to clear off this inventory to make way for new models because most businesses would tend to strike a balance between used and new cars. What this means for you, September will be no different from February when you want to buy a used car.
This may make you wonder if there is no any good time to buy a car and is there any possibility to get a good discount?
A study conducted by iseecars.com has some interesting findings on this front. After conducting a survey among used car buyers and car dealers and also after doing some ground work, the study concluded that November and December are the best months of the year to buy a used car. The general opinion is that the holiday season brings much cheer and happiness to everyone around and it is the shopping season of the year too. So, car dealers are also in the same festive spirit and this could help you get that extra discount on the used car you want to buy.
The study says that Black Friday and Thanksgiving are the best days to buy a used car.
Interestingly, the study also showed the worst days and months to buy a used car. It says that the months of April, May and June are the worst times to buy a car. If you’re wondering why, one possible answer is that most people go on long drives during the summer months, so there is a greater demand for cars just before July and August. With high demand, car dealers would obviously try to make the most of it, so they may not be ready to give you any discount whatsoever. This is also why holidays such as Easter, Mother’s Day and Father’s Day are the worst days in a year to buy a used car.
We hope you keep these dates in mind when you are ready to buy a used/new car.
- When is the best time to buy a car? – Bankrate
- Best Time To Buy A Car: Shopping On These Days And Months Will Save You Tons Of Money – Investor’s Business Daily