I get a number of emails from readers and calls from friends asking me when is the best time to buy a new car. My first answer would be when you want to or when you can afford to, but for the best price on a new car that are several times that I would consider to be best time for making a new car purchase. In this post I will provide you with the best times and the reasons why it’s the best time to purchase a car so you can make sure you will get a sweet deal on your next new car or truck no matter where you are in the market. You can also check out the steps of how to buy a new car for a quick overall view of the process.
Examples of the Best Time to Buy a New Car
Incentives: Aggressive automaker incentives can be a signal to the best time to buy a new car. Automobile manufacturers offer rebate and low rate financing incentives for two reasons. The first reason is to move metal, sell more cars or turn more inventories and in order to stimulate new car sales they provide these consumer incentives. The other reason is to gain market share in a specific region, state or group of states. When the automakers offer aggressive incentives it means they want turn inventory, which means it, could one of the best times to purchase a new car or truck.
Month End: This is often the best time to buy a new car because of dealer ships goals and sales targets. I have often seen car dealers deeply discount vehicles the last couple days of the month to meet goals or achieve factory sales competitions. Therefore the sale managers and car salesmen will go that extra mile to make a sale and receive a bonus. There are even dealers that accept deals that are well under their cost to in order to meet a factory sales program. When this is the case any month can be the best month a buy a new car.
Model Redesign: Depending on the automaker they will completely redesign their models every few years. A complete overall of a certain model will render the old model stale and less desirable to a new car buyer therefore prices are usually heavily discounted. Often these discounts come in the form of rebates and low rate or even 0% financing on new cars. However this might not be enough to trigger enough activity to sell the reaming models. When this is the case they will also provide dealers with additional discounts or even contests for dealers to earn tiered or graduated discounts. Either way, when this happens you can rest assured that the answer to your question of what is the best time to buy a new car would be then. All of those consumer and dealership programs can net you huge savings when buying your new car.
Supply and Demand: If go back to the basic rules of economics and manufacturing the law of supply and demand comes into play. When auto manufacturers have a large supply the price goes down and when the supply is low the price goes up. This rule of business applies for the automakers and the dealerships alike. If car dealer holds their new car inventory for too long they need to pay floor planning interest charges and if automakers have too much inventory their resources are tied up which limits their ability to make more profits. Large inventories means it’s the best time to buy a new car whether it’s the dealer or the manufacturer and especially if it’s both.
How About the Best Time Year Buy Car
Model Year End: The classic answer of what’s the best time to buy a new car is the end of the model year of a particular model of car. When the car dealers are receiving truckloads of new cars while they still have last years model is traditionally a great time to buy a new car. This reason is also covered under the supply and demand reason, but this is usually better and especially when they offer great incentives.
Calendar Year End: When I say calendar year end I mean the second half of December as far as the best month to buy a new car. The end of a calendar year is important to both dealers and automakers. Dealers want to add as many sales as possible for volume bonuses, auto makers want to report high sales for market share, car salesman want extra sales for spiffs and bonuses and sales mangers are also spiffed and given bonuses for extra volume. If you can also include financing specials, rebates and the dealerships desire to increase volume this could easily by the best time to buy a new car or the best time to buy a truck and get the best price.
Definitely Not the Best Time to Buy a New Car
When it comes to new car dealers you will see advertisements for all sorts of sales like an Anniversary Sale, Tent Sale, Spring Sale Event, Summer Sales, Fall Clearance Events, or anything specific to the dealership. These are not necessarily the best time to buy a new car. It’s the car dealer’s job to make you think that it’s the best time to purchase a car, but that is rarely the case. These kinds of sales will usually increase sales, but car dealers still pay the same price for cars regardless of a sale that the dealership may be hosting. Only sales and the offerings by the automakers often shown at Kelley Blue Book can reduce the price of a new vehicle and make it the best time to buy a new car. You can always check Edmunds for special manufacturer sales events.
As you can see there are many times throughout the year that are great for getting your new car for a deal. However when it comes to asking when is the best time to buy a new car you can see that the combination of any or all of the above events can be your ticket to big new car savings. You can find many tips for buying a new car right here on this car buying website.