When is the best time to buy a car?

The optimal time to purchase a vehicle depends on various factors that will not only influence the vehicles price but also the overall buying experience. Determining the best time of the year to buy a car involves a blend of strategic planning and market insights. Not taking account of individual circumstances, such as the urgent need for a new vehicle and various personal financial factors we have outlined some of the automotive market trends you can use to gain an advantage when shopping for new or preowned vehicle.

best time to buy a car

 

Here are the best times to consider buying your next vehicle:

End of the year purchase incentives:

As the calendar year draws to a close, dealerships aim to clear existing inventory to make space for the next year's models. Selling previous year models in the new year poses a challenge for new car dealers, as customers typically prefer purchasing vehicles from the current or upcoming model year. These left-over new car inventory will often occupy valuable lot space for an extended period, incurring additional costs for dealerships. To expedite sales and minimize financial impact, dealerships commonly initiate price reductions and introduce extra incentives, especially towards the end of the calendar year. Similar to new car dealers, used car dealers are motivated to clear out inventory that has lingered on the lot for over 30 days. This effort is driven by the need to create space for new or more sought-after inventory in the upcoming year. Consequently, the likelihood of securing substantial discounts on a preowned car increases notably towards the conclusion of the year.

Advantages of shopping for a car at the end of the month, quarter or weekend:

Car dealerships often operate on monthly or quarterly sales targets. Visiting a dealership towards the end of these periods may provide an advantage as salespeople may be more motivated to meet or exceed their quotas, potentially resulting in better deals for buyers.

Visiting dealerships during weekdays or off-peak hours can provide a more personalized and less hectic experience. Salespeople may have more time to negotiate and dealerships may be more inclined to offer competitive deals in order to move inventory.

Benefits of shopping for the preceding generation of a vehicle model:

Most commonly, when a manufacturer launches new models, new car dealerships are eager to showcase the latest additions. To facilitate this transition, they actively seek to create space and allocate funds, often resulting in discounted prices for the previous generation models. This can occur in late summer or early fall or whenever a new model of vehicle is typically introduced.

Buying a vehicle off season:

Certain models may have specific times of the year when they are more likely to be discounted.

In regions with distinct seasons, buying a convertible in the winter or a four-wheel-drive vehicle in the summer might yield better deals as demand for these vehicles tends to be lower during off-seasons. In addition, monitoring economic trends can help buyers capitalize on seasonal manufacturer incentives, interest rates and financing terms.

Taking advantage of sales events:

Major holidays, especially those with associated sales events like Memorial Day, Labor Day and Black Friday, often see dealerships offering special promotions and discounts. These sales events can be an opportune time to secure a favorable deal however, in most cases the deals will not be as favorable as buying the vehicle off season or towards the end of the year.

In essence, the best time to buy a car is a multifaceted decision influenced by external market dynamics, dealership targets and personal considerations. If your current vehicle is in good condition and you can wait for a strategic buying time, you may have more negotiating power.