When are the Best Times of The Year to Buy a Car? Perhaps it’s right around Christmas when every business has mega discount sales. Did you know that some car owners with long histories also don’t know when is the best time of the year to buy a car?
Is it really important to know the ideal times of the year to purchase a car? Yes, it is. If you’re planning to apply for an auto loan, you save money when creditors lower their interest rates. You also pay low installments when car dealers offer holiday discounts because it’s easier for you to pay a large cash deposit up front.
1. Here are the 10 Best Times of The Year to Buy a Car
1. During special offers
If a new car dealer sets up shop in your city, you expect to find more affordable prices compared to established auto dealers. In fact, the new car dealer will have a special offer running for a couple of months in order to attract customers. The offer applies to cash and auto loan purchases because car dealerships make more profit through credit sales.
How does one discover new car dealers in the neighborhood? You can always use different routes when heading home from college or work. Doing this enables you to spot a recently established car dealer. Your friends or relatives will also inform you if a new car dealership emerges in their side of the city.
2. End month
It seems pretty obvious but there are car owners who don’t know that they can actually pay less for their dream cars during end months. Virtually every permanent employee receives his or her monthly paycheck on the third or fourth week of each month. That’s why car dealerships create two-week offers in order to capitalize on this abundance of disposable income.
If you’re saving up to buy a car, make sure you visit car dealerships during the fourth week of the month. You can get a better price by negotiating for a lower price. Make sure you visit several car dealers to compare end month offers.
3. At the end of college semesters
At the end of college semesters, you’ll come across students who’ve just completed their undergraduate studies. In this group, you’ll come across foreign nationals who don’t plan to start a life in their host country. So, they sell off their possessions at throwaway prices.
Do you have friends in college who come from overseas? Make sure you develop strong friendships because people looking to sell their items always approach friends first before reaching out to strangers. You’ll also save a good portion of your income because your friend will give you the friendship discount.
4. The final week of May
Most people begin their summer during the final week of May. Even car dealers notice this trend and encourage it by offering summer opening discounts. You’ll get really good prices for cars that didn’t sell out during the previous summer opening discount. It’s also the best time to buy a brand new car since most auto manufacturers release new models before or during summertime.
You also get better car prices during the month of May because most businesses begin their financial year in June. Therefore, car dealerships reduce car prices in order to get rid of closing stock.
Research shows that Americans prefer getting married from June-August. The weather is so good that it virtually entices you to do an outdoor summer wedding. Good weather also facilitates convenient traveling for guests and this is an important factor because weddings are social events.
Since memorable weddings require high spending, there’s always an abundance of couples eager to sell their car. Apart from the wedding, the couple is thinking about purchasing a bigger home to raise a family in. If you go to church frequently, you’ll hear several wedding announcements and also requests for financing. Here, you’ll come across a few car offers.
6. When an auto manufacturer launches a new design for a pre-existing model
Car manufacturers rely on the latest trends when designing the latest models. Sometimes, their market research goes wrong and they end up producing a car that performs poorly in the market. This causes some auto manufacturers to launch varying designs for pre-existing models.
If buyers respond positively to the new design, car dealers will have no choice but to sell previous designs at greatly reduced prices. Why? Because they need to create space urgently for the highly demanded car. In this situation, you’ll get a really good auto loan deal.
7. When a car manufacturer announces the end of a model’s life cycle
In August 2015, internationally renowned auto manufacturer, Jaguar Land Rover announced its decision to cease the production of the popular Land Rover 110 model. You’ve seen this tough military vehicle in Sylvester Stallone’s Rambo movies. Virtually every military in the world owns hundreds of the Land Rover 110.
An auto manufacturer may cease producing a particular model because it doesn’t meet newly introduced environmental standards. A manufacturer who’s on the verge of collapse will cease production to prevent further loss of capital. After making such an announcement, car dealers will reduce prices significantly because it will be hard to source for genuine spare parts five or ten years later.
8. One year after the launch of a new model
Have you ever noticed that car advertisements tend to increase from September until December? Car’s lose value at a high rate just 12 months after market release. That’s why auto manufacturers always want you to focus on the next year’s model. Sometimes the drop in market price could be as high as 20-25%.
Rather than burden yourself with an expensive auto loan, it’s better to save up for a year as you watch the price reduce gradually.
Now you know the ideal times of the year to purchase a car!
As a smart customer, your aim is to get value for money when purchasing a car. You actually save money for more important needs such as mortgages and college tuition fees when you pay affordable auto loan installments. Make sure you compare prices and car loan deals when you want to buy a car during these Best Times of The Year to Buy a Car.