When Is the Best Time To Buy a Car? A Guide for Savvy Car Buyers
Car shopping requires careful consideration, whether you plan to buy a car from a dealership or approach private sellers. If you’re on a budget, you must take advantage of all the savings available to you.
One often overlooked way to get a favorable deal is to buy during certain times of the year. You can increase your odds of getting a good deal by timing your purchase right.
Let’s look at the best time to buy a car and other helpful tips that will help you get the best deals on a new or used vehicle to help you get around.
When Is the Best Time to Buy a Car? Considerations About Timing
Shop When Sales Are Most Abundant
The calendar year is the first thing to consider when purchasing your car. While exact dates will vary, the general rule is to buy your vehicle anywhere from October to New Year’s Eve. Many car dealership sales targets have to be reached during this time, which means that car salespeople are more open to negotiation.
But don’t think you can only go car shopping at the end of the year. Dealerships also have monthly sales goals, so shopping the last few days of the month could yield a good price.
Many dealerships advertise sales around holiday weekends, too. Typical sales holidays include Memorial Day, Presidents Day, Labor Day, and July 4th. While you might not be thinking of shopping for a car on New Year’s Eve, this could also be a great day as few people are shopping, and it’s the last day for car salespeople to hit their end-of-year quota.
Just make sure you’re getting a deal on new or used cars and not getting tricked into buying a car because it looks like a good deal!
Model Year Change Over
New models usually hit showroom floors in the fall, though some may debut at other times of the year. Paying attention to when new models come out can save you money. Dealers want to make room for the latest models on car lots, so they tend to discount cars from the prior model year. These discounts are even better if the new version is a redesign.
If you don’t care about owning the latest version, consider looking at outgoing models, as you may find steep discounts.
Pay Attention to Car Sales Statistics
Here is a trick to help you save money: Look at car sales statistics. You can find the breakdown of sales by make and model online. This information lets you understand how easy or difficult it will be to get a deal on your next car.
For example, if a car is incredibly popular, dealers will be less likely to reduce the price as they know they have many potential buyers. On the other hand, a slow-selling model might have more incentives and allow for negotiation to get a great deal.
Know What Others Are Paying
You can quickly find average transaction prices online that tell you what others are paying for the exact model vehicle with the features you want. This information will put you in the driver’s seat when it comes time to negotiate.
If you are considering buying a used car, refer to price guides like Kelley Blue Book or NADA. These will give you rough ideas of the price you should pay, depending on the vehicle’s condition and mileage.
Whether you are buying a new or used car, this information will help you know when a vehicle is overpriced and when you are getting a great deal.
Do The Math
When you buy a car from a dealership, you can choose to use financing from the dealer or get financing from your bank. It is important to consider both and not rely on one. You might find that your bank offers a lower rate for auto loans, but if you finance through the dealer, you get additional incentives.
When shopping for a new vehicle, I found that if I took the dealer financing, I got a lower interest rate, an additional $2,500 off the price, and I didn’t have to make payments for three months. These factors made it easy to choose to finance with the dealer.
Make Sure You’re Financially Prepared
When you think about timing, it’s important to consider whether or not it’s the right time financially for you to buy a car. Ask yourself, are you financially prepared? Do you have enough cash set aside for a down payment? Are you prepared to pay any fees associated with purchasing a car at the dealership?
Make sure to create a financial plan of action to purchase a car so that owning it does not add undue stress to your life.
Wait Until Your Credit Is Sufficient
Getting the best deal on a car goes beyond just the price tag. Unless you’re buying an old car model from a private seller, car shoppers need to think about their monthly car payments. Securing a good loan revolves around having a higher credit score. Take time to build your credit to a FICO score of around 661 to help you get more desirable rates and terms on your auto loan.
Avoid Car Payments When You Have Other Major Responsibilities
Sometimes, buying a new car may not be the best choice. Say, for example, that you recently purchased a new house and feel a little overextended financially. If you’re still determining how you’ll be able to navigate the near future, there may be better choices than adding a car payment on top of that.
Likewise, many will avoid buying a car near retirement to avoid taking monthly payments out of their fixed income. Figuring out if right now is a good time can play a critical role in your financial future.
Your Old Car is More Trouble Than It’s Worth
The most significant contributing factor about when you should buy a car is how your current car is doing. Thinking about buying a new car while yours is still running is smart, as it gives you more time to thoroughly assess your options.
However, if yours is at the end of its life cycle and you need a car now, you don’t have time to wait. As soon as possible is the best time. Just make sure you’re researching the car buying process and looking at multiple car deals in your area to be confident about your next car.
No matter why you’re in the market for a new vehicle, timing your purchase right can help you access more favorable deals, receive better incentives, and determine whether your purchase is the right fit for you.
Beyond Timing: Other Tips That Help Improve Car Purchases
Timing can make or break your car-buying experience. But finding better deals during the holiday season or waiting until a new car purchase is within your budget aren’t the only tips to get the right vehicle or the best deal on a car.
If you want to make sure that your timing and strategy are impeccable, let’s look at a few additional tips to make it easier to make a deal when the time is right.
Learn How to Talk Car Dealers Into a Good Deal
Those specializing in auto sales are excellent at negotiation, so you must master it if you plan to purchase a new or used car from a dealership. Take some time to research how others manage to negotiate down dealers’ prices.
What strategies do dealers use to hook someone into a deal immediately? Are there other practical bargaining tips that will help you negotiate a car price regardless of whether you only stick to dealerships or look into cars sold by private sellers?
Many people shop and negotiate online for a car as there is less pressure than sitting in the dealership. If you are not keen on negotiating, consider this tactic.
Always Request a Test-Drive, Inspection, and Car History
Making sure a car is the right fit for you requires knowing everything about it. In the case of new vehicles, you’ll want to spend some time behind the wheel and take it for a test drive before committing to the purchase.
If you’re looking to buy old models, you’ll need to do a bit more, like asking for an inspection of the vehicle so you understand its condition, as well as details about the car’s history so you can identify any problems before they arise. The more familiar you are with any vehicle, the more confident you can be in your purchase.
Plan Out Your Budget Ahead of Time
There should never be any guesswork about your finances, especially when buying a car. If you anticipate purchasing a vehicle because you need a new one, are looking to buy a second one, or even want to buy a car for your teen, sit down and carve out space in your budget for a down payment. Be sure to account for any fees when purchasing your vehicle, such as documentation fees, emission fees, etc., and future car payments.
Of course, if you purchase a car that you can buy outright, you’ll never have a car payment again, which can reduce a great deal of stress on your finances. Consider your options and what will work best for you.
Consider Buying From a Private Seller
It’s important to highlight that looking to buy cars from a private seller can come with some potential disadvantages. Getting ripped off is the biggest drawback if you’re not careful about who you’re buying from or how much research you do into their vehicles. But there are others. The lack of a warranty and a more complex purchasing process characterized by a lack of financing are things to consider.
Still, there are some key benefits to approaching a private seller instead of traditional car dealerships. Most notably, shopping for a car this way will often get you a much better price, void of all the extras the dealer will try to sell you.
You also have more control over the situation and an easier time negotiating prices with private sellers. If you’re not averse to doing a bit more work to find great car deals you can’t get at dealerships, this might be a great way to find a gem of a used car.
Know What a Car’s Worth
When you know your stuff, you’re better able to haggle and less likely to be taken advantage of. For example, are hybrids worth it, or are you overcharged for something that doesn’t benefit you more?
Why are some used cars worth more while other older models from that same year are going for less? What features make a car’s price skyrocket? Educate yourself on the vehicles that appeal most to you to know exactly how much you should spend going in. This research will help you negotiate a fair price and stay within budget.
When is the Worst Time to Buy a Car?
The worst time to buy a car is when you are desperate. When you are in great need of a vehicle, you might not think clearly about the numbers, or you might not try to negotiate for fear of not getting a car.
Another bad time to buy is when you do so without much thought. We all make impulse buys, but usually, they are small in amount. Making a significant purchase on a whim, like buying a car, can lead to all sorts of trouble.
