Whether you’re planning to buy a new or used car, the same time frame applies for both. The logic is simple. Sometimes when people are purchasing new cars, they trade-in their old models in exchange for discounts on the new buy. Thus, there lines up another car on the dealer’s lot that needs to be sold out. He then offers incentives on both to lure us.
If you’re patient enough to wait for the right time, car experts will tell how it can save you a lot of money. So, when is the best time to buy a car?
Here are five best times to buy a car and save moolah:
At The End Of The Calendar Year
You worked hard the whole year so buying a car towards the end would be the perfect gift to yourself. Well, there’s also another -- a more important -- reason why this is the best time to buy a car. You land some of the best deals ever!
The dates between December 20 and 31 are when manufacturers clear out previous inventories to meet the year’s sales goals. To expedite these last few sales of the year, they raise incentives which in turn can help you save thousands.
The only drawback here is that you don’t get much choice in selecting your first preferred car in terms of colour and model. Since it’s the end of the year, you’re only left to choose from unsold ones. But it has its own perks – heaviest discounts.
At The End Of A Financial Year
December is too far, and you can’t wait that long. Is June nearer?
Every year, during the end of the financial year i.e. from 15 to 30 June, you will find yourself great discounts while purchasing a car.
During this time, the manufacturers roll out bonuses for reaching certain sales target, thus the dealers are more concerned about increasing their sales number instead of focusing on making profits. They take advantage of the bonus being paid by the manufacturers.
Sometimes, dealers are also trying to clear their stock at the end of the year to take on the final sales figures for their financials. They want to close the year with strong sales figures.
End Of The Month
Can’t even wait until June? I can understand your impatience. Guess what! You can still buy a car at a great rate!
The last five days of any month is the time when dealers have the greatest incentives to offer. So if you are really in a hurry to make a purchase, it can increase your chances of saving money.
This is because manufacturers have bonuses set for the dealers on hitting certain sales figures. At the end of the month, the salesperson has a monthly quota to fulfil and get compensated. Then there are some who’ve already made a profit earlier in the month but want their sales figures to go up further.
You can use this to your advantage and save a few bucks. Know which vehicle you want -- new or pre-owned -- and then negotiate to settle on a good price.
When Models Are On The Way Out
When new car models are about to come out, dealers want to make space for them by removing the old. It pays off to keep an eye on the life cycle of your desired model and time your purchase just before the next new model comes out.
The same rule applies if the manufacturers are planning a model redesign. They are on the lookout for freeing up space as well as cash for the new arriving models. You can spot some serious discounts on the outgoing design. Check out the list of newly launched models and still more to come in 2017.
Traditionally, newer models make their debut in autumn. Of course, there’s no unified timing for the new model season, but it generally falls between July and October. This is a good time for you. Strike when the iron is hot and save some serious money.
When A Rebate Is Being Offered
Each manufacturer has his own way of handing out incentives. The best time to buy a car is when dealers are temporarily offering rebates to clear out a model’s inventory.
It can be offered in the form of cash rebates, financing deals, and leasing offers -- anything that would help the dealer hit a pre-sale target set by the manufacturer.
This can take place at any time of the year. So if you’re in the market for a car, then make sure to check out the latest car incentives being offered in your area.
RedBook makes it easy for you -- now search the car incentives offered by your state as shown in the image below and take advantage of the benefits.
This could help you save a good amount of money. With extra dollars in your pocket, you can sponsor yourself a road trip in your new car. What say?
Remember the cardinal rule that there is always a best time to buy a new or used car -- use it to your advantage. Also, you are more likely to get a few extras such as discounted registration fee, accessories, and servicing offer during this period.
Here’s another car wisdom for you – whether approaching the dealer at the end of the calendar month or at the end of a financial year -- always do your homework. Research about the car, overcome your anxiety about deciding how much you want to pay, and walk in with confidence to make a final deal.
Whenever in doubt, it is always recommended to seek counsel and advice from your accountant.