When it comes to buying cars, timing is everything. Understanding when you should make an offer is key to getting the most out of your purchase. Here are some tips on the best time to buy a car and how to use them to maximize value.
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When Is The Best Time To Buy A Car?
When it comes to buying a car, timing is everything. Knowing when the best time to buy a car can save you thousands of dollars and help you get the perfect vehicle for your needs. Here are some tips on when to buy a car for the best deal.
- End of the Month: Many dealerships have sales goals they need to meet each month, so they may be more willing to negotiate at the end of the month.
- End of the Year: Many dealerships are trying to clear out their inventory before the new year, so you may be able to get a great deal on a car that’s been sitting on the lot for a while.
- Holidays: The holidays are a great time to buy a car since many dealerships offer special deals and discounts.
- After a New Model Year: If you’re looking for a new car, wait for the new model year to get the best deal on last year’s models.
Let’s take a closer look at why some of these periods could provide you an opportunity to get the car you want at a great price.
End of the Month or Quarter
The end of the month is a great time to buy a car because it is when dealerships are most motivated to make sales. This is because salespeople have monthly sales quotas they need to meet, and their bonuses and commissions can be affected if they don’t reach them.
Many dealerships offer special incentives at the end of the month, such as discounts or free extras, to entice buyers. Furthermore, since fewer people are shopping for cars during this time of the month, you may be able to negotiate a better deal with the dealership.
End of the Calendar Year
The end of the year is a great time to buy a car for several reasons. First, many dealerships are trying to clear out their inventory before the new year, so they may offer discounts or incentives to buyers. Additionally, automakers often introduce new models in the fall and winter months, which means that older models may also be discounted.
Holidays
Holidays are a great time to buy a car because many dealerships offer special discounts and incentives. During the holidays, dealerships are often more willing to negotiate prices or offer additional bonuses such as free maintenance or extended warranties.
Additionally, many manufacturers offer holiday-specific deals that can help you save even more money on your purchase. Finally, the end of the year is typically when dealerships are looking to clear out their inventory to make room for new models, so you may find some fantastic deals on older models that still have plenty of life left in them.
Specific Days of the Week
When buying a car, the best days of the week to do so are typically Tuesday, Wednesday, and Thursday.
Mondays tend to be busy for dealerships as they are preparing for the upcoming week and may not have enough staff available to give you the attention you need. Tuesdays and Wednesdays are usually quieter days for dealerships, meaning you’ll have more time to negotiate a better deal. Thursdays are also good because many dealerships offer special deals on this day to boost sales before the weekend.
The End of the Model Year
The end of the model year, usually about September or October, is a great time to buy a car for several reasons. First, dealerships often look to clear out their inventory of the current model year vehicles to make room for the new models. This means they may be willing to offer significant discounts on their remaining stock.
Additionally, manufacturers may offer special incentives and rebates to encourage buyers to purchase their vehicles. Finally, since the new models will soon be released, you can get a great deal on a car with all the latest features and technology without paying full price.
Holiday Weekends
Holiday Weekends may offer great deals to car buyers is the extra foot traffic in dealerships during these periods. Given that many people are off work for an extended period, there is more time to shop around and look for deals.
The best holiday weekends for buying a car are Memorial Day, Fourth of July, Labor Day, and Black Friday. Each of these holidays offers unique deals that can help you save money on your purchase. Here are some of the incentives you can look forward to on these days:
- Memorial Day weekend is typically when dealerships offer their most significant discounts of the year.
- Fourth of July weekend is also a great time to buy a car since many dealerships will offer special financing options or cashback incentives.
- Labor Day weekend is another popular time for car sales since it marks the end of summer, and many dealerships will be offering additional discounts to make room for new models coming in for fall.
- Black Friday is an excellent time to buy a car since many dealerships will be offering discounts on select models to attract customers during this busy shopping season. Additionally, Black Friday immediately follows the end of the model year, so there will be an excess of stock available at great prices.
What Incentives Should I Look For?
Auto manufacturers often offer deals to entice customers to purchase their vehicles. These can include cash back, low-interest financing, and special lease offers. To shop for these incentives, it is essential to do your research and compare different models, manufacturers, and retailers, as the available incentives will vary widely.
Cashback
Cashback incentives from auto retailers are a type of promotion that allows customers to receive a percentage of the purchase price back in cash. On average, auto retailers offer between 1% and 5% cash back on the purchase price of a car. The exact amount of cashback varies depending on the make and model of the vehicle, as well as any additional promotions or discounts that may be available.
Free or Discounted Maintenance
Free or discounted maintenance from an auto retailer typically includes oil changes, tire rotations, and other basic services. They may occasionally include more extensive services such as brake repairs and transmission flushes.
The length of the offer varies depending on the retailer, but it is usually for a limited period. Some retailers may offer free or discounted maintenance for up to two years after purchase. Check with your local auto retailer for details on their specific offers.
Multi-car Discounts
Auto retailers offer multi-car discounts to incentivize customers to purchase multiple vehicles at once. These discounts can cover various items, such as reduced prices on the vehicles themselves, free or discounted accessories and services, and even extended warranties. The exact details of the discount will vary from retailer to retailer, but they typically offer a percentage off the total cost of all vehicles purchased in one transaction.
To take advantage of a multi-car discount, customers must purchase all of the vehicles in one transaction from one retailer. This means they must be able to pay for all of the cars upfront or arrange to finance them simultaneously.
Loyalty Rewards
Loyalty rewards are typically provided to individuals with a history of purchasing cars from the same brand, dealer, or dealer network over the years.
These rewards can be used for various things, including discounts on car purchases, free oil changes, and even cash back. Depending on the retailer, these rewards may also be redeemable for gift cards or other merchandise.
Remember that not all retailers provide loyalty rewards, and distributing them is at the dealer’s discretion.
Low-interest Financing
This incentive is an auto loan offered by car dealerships that typically offer lower interest rates than standard financing. Generally speaking, the average interest rate for a new car loan is around 4-5%, while used car loans typically have higher rates of 6-7%.
Low-interest financing rates vary depending on the dealership and the type of vehicle being purchased, but they are usually lower than standard financing rates. For example, some dealerships may offer 0% APR for up to 72 months on select vehicles, while others may offer 3% APR for up to 60 months. Keep in mind that the down payment you provide may affect your ability to cash in on this incentive.
Special Lease Deals
Incentives can include a discount for the vehicle overall or money back to the customer after the purchase. Manufacturers’ incentives can also be cash back to the dealerships, which they can then pass on to the salespeople to motivate them to sell.
Specific incentives, like marketing support, are cash incentives designed to help the dealership market the vehicles the manufacturer is trying to push through. The dealership can put that money into their pockets to assist with marketing costs or offer a portion to the salespeople to highlight those vehicles to buyers.
Is It a Good Time to Buy A Car Right Now in 2023?
The short answer is that it is too soon to tell. The forces that have made cars expensive to buy in 2022 are still present and may continue to affect the cost of cars in 2023. Chip shortages, shipping disruptions, inflation, and lower inventory all remain factors that could influence the price of cars in 2023.
However, there are some signs that these issues may be easing. For example, chip manufacturers have been ramping up production, and some shipping companies have increased their capacity. In addition, many automakers have been increasing their inventories as demand for new vehicles has risen.