What could be the best time to buy a car?
There’s nothing like the smell of a new car, but can quickly be overwhelmed to realize that you overpaid. A car is one of the most expensive purchases most people make, one that usually stays with them through years of monthly payments. No one wants the joy of driving a car to be invalidated by the pain of paying too much for it.
Fortunately, there are many good deals when it comes to buying a car. You can get rebates, zero interest payments and there are other ways to save money. A wise buyer can find a quality car at a good price, especially if you choose the right time to visit the showroom. Buying a car is one of those rare times when procrastination can be good. You can find some of the best deals if you wait until the end of the month or, better yet, end of the year.
Most dealers work with a monthly bonus system, for which they receive a bonus check if they meet certain sales targets in a particular month. If they are to achieve that goal two or three days before the end of the month, there is an additional incentive for the concessionaire to another sale. For example, if they need to sell a car to reach a bonus of $2,000, it will be worth $1,000 or even lower than $1,500 if they don’t.
However, if a dealer has had a particularly good sales period and reached the number of the bonus before the month ends, the main motivation to cut prices has been eliminated. So it is possible that the same dealer that offers discounts at the end of a month will not provide the same discount for the following month. A better option would be to wait until year-end when it could have much better incentives for dealers negotiate. Bonuses on annual sales are significantly higher than a monthly bonus.
So again dealers are sometimes desperate to settle the batch of models that year to make way for the latest and most significant deals, which usually begin in September and October. When the calendar flips, all these vehicles have been a year old. However, in reality, are still basically new cars with almost no mile traveled. Unless a manufacturer has made a major design change to a model, the practical difference in the cars from one year to another is slight. But the difference in price can be significant.
The worst time of year to buy a car, particularly a used one could be in the spring. They get tax refund checks and people start driving more as the winter weather disappears. With extra cash on hand and warmer days to come, more people are looking to buy a car. And more buyers means more opportunities for dealers to sell without offering discounts. Like most products, the price of a car depends on whether it is a buyers’ market or sellers’. Whenever dealers have an additional incentive to sell, that is the best time to buy.