When Is The Best Time To Buy A New Car?
If you want to save money on your new auto purchase and don’t really care if it isn’t the latest model, the BuyingAdvice Team reveals to you the best time to buy a new car.
Time of the year: September through November.
New models start arriving in September and so dealerships need to get rid of current year models and make room for new ones. And, like the US Department Of Labor states, “automotive dealers are more likely to offer generous incentives, rebates, and financing deals during slow periods to maintain high sales volumes and to reduce inventories”. Even manufacturers offer dealer incentives to sell cars that are either overstocked or undersold. For example, a carryover allowance is a year-end factory-to-dealer incentive program that enables a dealer to hold “year-end clearance sales” to clear the lot for new models.
Time of the month: last two weeks.
Every month dealers must sell a pre-established number of cars. In other words, they must make their quota before the month is over. Large dealerships even pay bonuses and have special incentive programs for exceeding sales quotas. But sometimes dealers fall short and don’t reach their sales objectives. If the month only started two weeks ago, they still have time to sell another auto. But if they only have one week left, they have no choice but to lower the new car price so as to sell the vehicle and make their quota.
As a result, it’s better to buy a car at the end of the month. A dealer that has not made his quota may be interested in bargaining with you just to sell another vehicle and get his bonus. Even ordinary cash incentives get ratcheted up toward the end of a month because manufacturers also want to report strong sales figures.
But always remember that, in the end, the best moment to buy your new car is after you think long about your needs and do the math on how much you can spend. Think of the type of car you really need instead of the one you want. Buying a new car shouldn’t be an emotional impulse but rather a rational decision.
Also, if you’re in the dealership only to test drive a car, tell that to the dealer upfront. Otherwise he’ll do everything he can to sell you that vehicle. If you make up your mind about an auto but still aren’t sure, don’t be afraid to walk away. Sleep on it before making a decision. After all, buying a new car is one of the most expensive purchases you’re likely to make in your life, and the least you can do is make sure it’s a good investment.
Ask for a new car quote and do all the research you can before hitting the dealerships so that you know the grounds on which you can start negotiating.
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