At Sticker Quicker, we are here to help you save money and time. So today we are going to outline what part of the year is the best time to buy a new car and why. Let’s get started.
It has been proven with research and production patterns that there are three times of year that serve as the best for buying cars.
The first one: Mondays.
Typically serving a calmer and quieter day at most car dealerships, Mondays are the best day of the week to go car shopping. With most buyers at work, sales representatives can take the time they need to help you with thorough advice and direction.
On the other hand, Mondays are a great day to buy due to the comedown from busy weekend schedules, sales reps are more likely to offer better deals or to throw in something extra like a free oil change or car wash.
If you are unable to make it into the shop on a Monday, here are some other times of year to look to purchase. These times typically include: the end of the year, end of month, or end of model year. To summarize, the best months are typically October, November, and December. However, the end of each month also provides a higher likeliness of cheaper buys.
The reason why these months at the end of the year are the most effective is because of car dealerships’ quota systems. Typically, dealerships break their sales quotas into monthly, quarterly, and yearly sales goals. So if you go into a dealership that has already met their yearly quotas, you will be more likely than not to find cheaper options. Additionally, at the end of the fiscal sales year, representatives may be in the position to receive a bonus, or since the year is coming to close, they are more incentivized to close the sale.
Meanwhile, another great timeframe to be familiar with is the model year of certain cars. This timeframe is characterized by the time in which the newest models will be released. Thus, most analysts suggest waiting for the release of new models to get an older version. Or instead, wait for the new version to come out if you are looking for higher quality or more digitized features as new models will offer everything you want and more for only a few hundred dollars extra. It is a long-term investment to wait.
Here is a breakdown of typically discounted pricings throughout the year:
Least Discounted: January, February, March and April
Better Discounted: May, June. July, August, and September
Most Discounted: October, November, and December
The last option we suggest is around the holidays. For years, when holidays roll around, car dealerships offer extensive discounts. Here are some holidays we advise you to consider buying around:
- Labor Day: This holiday usually serves as the end of summer and is one of the busiest times to buy a new car due to the great deals that a lot of companies offer.
- Black Friday: Just like the retail industry and the tech industry, automobile makers also capitalize on the buying-craze that comes along with Black Friday. Thus, this consumeristic holiday is the perfect time to buy a car, as sales representatives are looking to meet end-of-year quotas and to provide for their families. It is one of the salesman’s favorite times of year to close the sale.
- New Year’s Eve: Another time of year that capitalizes on quotas is the last day of the year, New Year’s Eve. Just like the end of any month or model year, the end of December is the perfect time to buy a car and to save money when buying a new vehicle.
Now that we have provided the specific times of year that are best for buying cars at a reasonable price. Let us differentiate the times, focusing on what car buying looks like in 2022, as certain circumstances can make for a different answer when looking to buy a car this year.
It is important to keep in mind some of the obstacles the car and truck industry has been facing; such as chip shortages, inadequate supply, and having to ask for higher monthly payments on-average. Since the rise of the pandemic, global parts shortages have caused wild increases in car prices.
This year alone, the average transaction price for the first six months after purchase increased by about 18% since 2021. Therefore, in relation to the obstacles brought forth by the pandemic, buyer complications on the other end induce limited selection, increased prices, and lesser buyer power with little room for negotiation. Additionally, with increased fear of car shortages, buyers feel the pressure to buy now, making the process even more intensive.
If you are looking to buy a car and you need one soon, keep all of these strategies in mind. Also, there are other important aspects of car buying that have to do with current or changing loan rates, and the impact of taking out personal loans to buy and how it can impact your credit score. Meanwhile, see how buying a new car fits into your budget and if the investment is worth financial straining.
There are many tools online to evaluate current auto loan rates, as well as tools and data that showcase buyer trends throughout the fiscal year that may help you figure out when exactly is the best time of year for you personally to purchase a car. Know what price range you are looking to spend within and remember that vehicles with 0% financing are typically designated (or should be) with buyers with flawless credit scores. Talk to an independently-ran auto loan company and double-check whether or not your dealership is offering you the best deals. Moreover, if you are looking to get a certified pre-owned car, be sure to check rebates, as this strategy could be more beneficial than financing without interest.
Avoid the hassle and commonly-made buying mistakes when you purchase your next vehicle. By showing up to buy a car as a prepared customer, you will be more likely to be able to negotiate and get a better price. You also mitigate the risk of paying more than you should when buying your new car. At Sticker Quicker, we want to help you find the easiest ways to save money and stress. Remember that timing is of the essence when buying a car… especially for less.