While not everyone enjoys the process of buying a new car due to the time-consuming nature and potential stress, there are certain periods throughout the year which provide an opportunity to purchase your desired vehicle at a more affordable price and with less difficulty.
Several times a year align perfectly with car manufacturers’ cycles, resulting in sales on current models in anticipation of the newest models. Let’s break it down.
PERIODS FOR PRUDENT PURCHASES
The cycle of car buying is similar to the shifting seasons – there’s a time for everything. Car manufacturers often unveil next year’s models much sooner than expected, causing a significant decrease in the price of current year models.
The price drop is instigated by the dealers’ goal to sell off the remaining inventory of the current year’s models to make room for the new release. By doing this, dealers set themselves up to maximize profits from the latest models. To achieve this, they have to ensure the existing models are sold – triggering considerable sales events.
Now, when does this financial sweet spot happen? Interestingly, it coincides with the back-to-school season. From the middle of August through the middle of September, dealers are more than willing to offer this year’s models at discounted rates. For you, this means significant savings, depending on the car’s make and model, ranging from $1500 to a whopping $5000!
However, be mindful that even though dealers are eager to let go of current year models, their profit margins stay higher on the new ones. As such, you might find them trying to convince you to go for the newest, glimmering models with higher price tags. Make your decisions wisely!
Unless the car has undergone a major redesign, the differences between model years are mainly limited to color or minor cosmetic changes. So, equip yourself with proper research before stepping into the showroom. Be clear about what you want and what kind of bargain you’re looking for.
Note that this principle can often be applied to older model cars, as dealers make less profit on them and thus are more willing to negotiate. In most cases, buying a slightly older model will provide you with the best deal.
OTHER PLEASANT PURCHASING PERIODS
In addition to the mid-August to mid-September period, there are two more times throughout the year when you can savor a sweet car deal.
The second-best buying opportunity is at the end of the quarter (March, June, September, and December). Car manufacturers often set quarterly sales goals for dealerships, providing them with significant incentives to meet those targets. This can result in generous deals for buyers, especially if the dealership hasn’t reached its quota.
Furthermore, the month-end can also be a great time to buy a car. Most dealerships aim to meet manufacturers’ monthly targets, becoming more willing to negotiate if those numbers haven’t been met by the end of the month. This is especially true for yet another motivator – the last weekend of the month – when dealerships see more foot traffic and are keen to secure sales.
Therefore, armed with this knowledge, take your time to decide on the best vehicle for you. Test drive different models, run your numbers to fit your budget, and once you’re sure, make your move. Your best times to shop for significant savings are:
Mid-August through to Mid-September
Last few days and the final weekend of September
Last few days and the final weekend of August
Final weekends and days of March, June, and December
Last weekend and final few days of other months
Now that you’re in possession of the key periods to buy a car, you should be well on your way to securing an impressive deal. When were some of the best times you found to purchase a car and save significantly? Let us know!
