In the market for a new car? Here’s some tips and tricks – and even the BEST time to buy – that is important to keep in mind

Ahhhh nothing beats that new car smell….you know the one, car fresheners, clean air, and a void in your bank account. But what if I told you that a new car doesn’t have to break the bank nor does it have to leave you in debt? Keep reading to find out!

Typically the best time of the year to buy a car is…..actually several different times during the year, surprisingly. The first time is at the end of the month. Now if you aren’t the type that does well under pressure, no need to worry. Test drive the car during the month but wait to buy. Usually at the end of the month employees are most likely looking for a way to meet their quotas, thus making them a little more flexible when it comes to negotiating. Although it may be hard to read them sometimes, take a moment to ask the salesperson why they want to make the sale. If the reason makes sense to you AND the price happens to be a better one than you expected, it could be a sign that the dealer is trying to achieve a sales goal. Another bonus? New car incentives are good for a few days after the month ends which all around makes it a good deal for you. 

The second time is at the end of the calendar year. By this point, the next model year of cars is already unveiled and ready for purchase which is perfect if the one that you wanted was an “older” year version. Whether you are in the market to buy or lease a car (at the best price possible) Edmunds data show that December’s year-end sales will give you the “perfect storm” of savings. December also has the highest discount off MSRP – 6.1% on average – and the highest incentives (as if you needed another reason to buy during this time). Automakers and dealerships are eager to end the year with strong sales and want to get rid of the previous model-year cars so they will be motivated to meet the customer’s demands. Also be sure to check Edmunds’ Incentives and Rebates for customer cash rebates, low-interest incentives and lease specials.

Best Month to Buy a Car

Obviously, if you need a car in January, it would make no sense to wait 11 months to make the purchase, however, keep in mind that through the months of January-April is when the least amount of discounts off MSRP will be available. These months are typically considered to be the slow selling months especially with the fact that people are trying to commit to their new years resolutions. In fact, February is the month with the smallest amount of MSRP with an average discount of approximately 5.7%. 

Things pick up in the summer though, and so through the months of May-September is when you will see a better discount as this is the time when the introduction of new cars drives the prices of outgoing models down. Furthermore, through the months of October-December would be the ideal time to buy, even waiting till December comes around to make the purchase, as these are the times that the most discounts will be offered, although it leaves you with a slim selection to choose from. Waiting will give you more time to not only shop around and do your research but it will save you money and define the right car for you more clearly. 

Tips and Tricks

• Best day to buy a car: Early in the week (Tuesday or Wednesday) – Monday is very busy
  • Benefits: Less foot traffic, salespeople will be able to spend more time answering questions, higher attention level from the salespeople, the transaction will take less time 
• New model year cars come out in Fall – the end of Summer is the best time to buy 
  • Benefits: Bump in incentives, low APR financing on outgoing model year cars 
• Edmunds analysts say that August and September are generally when automakers make the most decided transition into new models 

Something to keep in mind: It is worth looking into the incoming model-year cars to see what changes have been made – features, exterior and interior look, to name a few – and to get a feel for pricing. It is rare, but there have been instances when a car from the incoming year has had better incentives in comparison to a car from an outgoing model year, specifically if you’re looking to lease 

• End of the car’s design cycle (before a redesign) 
  • Benefits: A serious amount of savings on the outgoing design 
  • Disadvantages: Buying a car without the latest styling or technology – but this might not matter to you if you’re more a trendsetter or bargain hunter
• End of the car’s life cycle (discontinued model) 
  • Benefits: Even bigger savings 
  • Disadvantages: The car will depreciate significantly – but this won’t matter if you are planning on keeping it awhile
    • It is worth looking into why the automaker pulled the plug on the vehicle – changing tastes or was the car bad in terms of performance or reliability?
• Three day weekends
  • Benefits: Labor Day – Sweet spot in terms of selection and competitive pricing; Black Friday – Signals the end of the model year, so bigger discounts
• Best time to buy a used car 
  • October-December – These months coincide with the peak new car buying season at the dealership, meaning more trade-ins are entering the used car inventory 
    • Benefits: More trade-ins mean a better selection of used cars and better prices, especially if the dealership is trying to meet year-end quotas; best price – December 

Final Thoughts

Buyers are always looking for a deal whether it be food, travel, entertainment, or even when buying a car – maybe especially when making a big purchase. Now that you have the information you do from this blog, take this and do something with it. You have so many opportunities during the year to get the best deal for a new car, so which time will you choose?