Best Time to Buy a New Car
The best time to buy a new car depends on a lot of factors.
In order to get the best new car deal, just like when buying
anything else – timing is everything. Since you will be
buying your new car from a dealer or possibly direct from
the manufacturer, it’s important to keep in mind some
important facts about buying new cars that will help you
determine the very best time to make your new car deal.
There are several good times to buy a new
car at a discounted price. Here is some information on
identifying the best time to buy a new car and get the best
new car deal. Depending on supply and demand, you may not be
able to get the new car you want at a special deal. Normally
the best new car deals are on models that are not currently
in high demand or appear as “excessive inventory”.
When New Model Year Cars Arrive
Everyone knows that cars always depreciate in value
depending on age. When the next year’s models are released,
all new cars sitting on the lot from the previous model year
are instantly worth a lot less than they were before. They
are considered “last years model”, and even though they are
totally brand new, you will pay a lot less for them. This
holds true for most cars, but may not be the case for cars
that are in high demand at the time.
Depending on a cars make, manufacturers
usually introduce the next year’s models between July and
October. Dealer advertisements in the newspaper will tell
you when the new model year’s cars are introduced, and
you’ll start seeing special “sale” prices and incentives on
the current year models. You can also check the
manufacturers’ website to find out when new models will be
arriving.
Never assume that the special “sale
price” on last year’s model new car is non-negotiable. The
dealer still has a lot of profit built into the price he is
offering, and may even be getting bonuses from the
manufacturer on sales of older models. Always use the “sale
price” as a starting point for negotiating, and be willing
to walk away if the salesman won’t deal. Chances are, he
will offer more discounts if you start walking out the door.
Late in December
People are busy Christmas shopping in December, and new car
lots are usually “dead”. Salesmen are eager to make some
money and dealerships are usually chomping at the bit to get
in as many sales as they can prior to the end of the year.
Many manufacturers offer special incentives and bonuses to
dealerships based on the number of cars they sell per year,
and if a dealer hasn’t yet met his goal, he will be more
than willing to negotiate a special deal for you.
End of the Month
Similar to the annual incentives that dealerships get from
manufacturers based on total year sales, new car dealers
usually have monthly quotas to achieve. Especially if it has
been a weak sales month, the best time to buy a new car is
during the last couple days of the month. Salesmen and sales
managers have quotas and bonuses too, and many of them are
willing to sacrifice some commission just to make a sale
that will take them to “the next level”.
First Day of the Month
Salesmen are very competitive, and there is something
special about making the first sale of the month. The
salesman who lands the first sale has accomplished something
special, and he will often be willing to forgo a bit of
commission in order to make this happen.
There is a bit of superstition among sales
managers that leads many of them to believe that the sooner
they make the first sale of the month, the better the month
will be. For these reasons, the best time to buy a new car
may be right after the dealership opens on the first day of
the month. Be willing to walk away if necessary though, and
you will likely land the best deal on a new car.
Depending on other factors such as supply
and demand, as well as how well the dealership is doing -
the best time to buy a new car just might be on the first
day of the month!
When Manufacturers Offer Incentives
By checking the
new car manufacturers' website, you can find out about
current factory incentives being offered on new cars.
Typically, manufacturers offer special rebates and/or
financing options when sales are sluggish and inventory is
high. This is a best time to buy a new car, if the car you
are interested in qualifies for an incentive (usually
this applies only to certain makes/models).
Many times special dealer incentives are
offered along with factory incentives. This can be the best
time to buy a new car because you might just get
double-discounts! If a manufacturer is offering a special
incentive on a particular make and model, but the dealer is
not advertising any special dealer incentive, this would be
a good time to negotiate the best new car deal because it is
likely the dealer is really getting an incentive, but wants
to keep it for himself. Again, if you’re willing to walk
away you will normally get the best deal on a new car that
qualifies for a factory incentive.
When Supply Exceeds Demand
Depending on the particular new car make and model you want,
the best time to buy a new car is when the dealer has an
excessive amount of cars on his lot. Demand for new cars
varies depending on gas prices, time of year, and
alternative models offered by competitors. If you notice a
lot of a certain type of car on a dealers lot, and he is
advertising special sale prices on this model, chances are
good you will get the best new car deal possible.
A good example of this occurred in my home
town a few months ago, when gas prices were high and
gas-sipping hybrids were favored over gas-guzzling SUV’s and
V8 trucks. Dealers couldn’t give away their SUV’s, and were
offering some incredible discounts. A friend of mine
purchased one and saved nearly $8000.
Research New Car Prices Before You Buy
Knowing the best time to buy a new car won’t do you much
good if you don’t know the true price of the car before you
start negotiating the deal. There are many good places you
can go online to research new cars for free and get the true
price of the vehicle. A great place to start your research
is on
Edmunds.com.
Another place you might want to use for new
car research (and get free new car price quotes) is
Yahoo Autos. Here you can enter the exact make and model
of new car you are interested in, as well as your zip code.
Yahoo Autos will then allow you to select all the options
you want and submit your request to local dealers. You will
get an email back with pricing information as well as
information on special deals. If you find a car you are
interested in, determine the best time to buy a new car from
the information above and make your deal!
Additional Resources and Information on
Buying New Cars
New Car Manufacturer Websites
New Car Search Options
If Financing a New Car, You'll Probably Need Gap Insurance
Getting Car Insurance Online Can Save You Money
Return from "Best Time to Buy a New Car" to "Buying New
Cars" |