August 2007
The best time to buy a car
Timing is everything and if you're in the market for a new car, good timing can actually save you money. There are many times
throughout the year when there are excellent deals on new cars. It seems, everywhere you turn, there are calendar year-end
deals, model year-end deals, discounts, rebates, and other promotions. So, when is the best time to buy and how can consumers
take advantage of these deals? Here are some good times to hit the showroom.
End of the month
Many dealerships establish monthly sales quotas that encourage each salesperson to make a certain number of deals. This means that during the last week of the month, especially the last weekend, salespeople are hungry to make a deal--their bonus may depend on it.
However, the tactics vary by salesperson. Some will negotiate a fair price quickly, others will use hard-sell tactics or pressure you to commit right away. But don't buy if you're not ready.
Even though the end of the month is a good time to buy, it's not a great time to shop. Before you come face to face with an eager salesperson, you should have a plan. Know what you want to buy, how you plan to finance, and what you will do with your present car. For more information on buying a new car, see our Guide to new car buying.
End of model year
Most manufacturers bring out their new model year vehicles in the late summer and continue their product launches throughout the fall. Some even introduce new models in the winter. Regardless, the end of a model run can be a great time to get bargains on a recommended model because dealerships are trying hard to unload any "leftovers." Maybe the first decision you're faced with is whether to consider one of those leftovers in the first place. The upside is that you can usually negotiate a substantial discount--after all, this is a car that will take a year's worth of depreciation the moment you buy it. If you want to trade that car in two years from now, it will be appraised as a three-year-old. But if you typically drive your car into the ground, short-term depreciation won't matter much. Another consideration is that you may find a very limited selection--cars with few options or too many. The last cars to be sold from any model year's inventory are probably the least in-demand ones, but they'll have the best prices.
End of calendar year
Just like the end of the model year, the end of the calendar year is also a good time to buy a car. There may still be "leftovers" from the previous model year available and automakers are looking to close the year with strong sales. They also want to get out what they can because the winter months are typically their slowest season.
Rebates & incentives
Manufacturers offer rebates, incentives, and cheap financing throughout the year, but they often coincide with a holiday, long weekend, or special promotion. Some manufacturers may even put a rebate on a new vehicle just to stir up interest and demand. For example, Toyota is currently offering incentives on its redesigned Tundra pickup truck. These sales incentives can be worthwhile and save you money, so it's a good idea to research the deals that are available.
Check out Consumer Reports' list of the current deals on recommended vehicles. Also, talk with other car buyers in our buying and leasing and best new deals forums.
The best way to shop for a new car is to do the research homework, choose two or three comparable models that have what you're looking for, and then check out what's available by way of financing options. And don't let a big discount lure you into a car that doesn't fit your needs.
End of the month
Many dealerships establish monthly sales quotas that encourage each salesperson to make a certain number of deals. This means that during the last week of the month, especially the last weekend, salespeople are hungry to make a deal--their bonus may depend on it.
However, the tactics vary by salesperson. Some will negotiate a fair price quickly, others will use hard-sell tactics or pressure you to commit right away. But don't buy if you're not ready.
Even though the end of the month is a good time to buy, it's not a great time to shop. Before you come face to face with an eager salesperson, you should have a plan. Know what you want to buy, how you plan to finance, and what you will do with your present car. For more information on buying a new car, see our Guide to new car buying.
End of model year
Most manufacturers bring out their new model year vehicles in the late summer and continue their product launches throughout the fall. Some even introduce new models in the winter. Regardless, the end of a model run can be a great time to get bargains on a recommended model because dealerships are trying hard to unload any "leftovers." Maybe the first decision you're faced with is whether to consider one of those leftovers in the first place. The upside is that you can usually negotiate a substantial discount--after all, this is a car that will take a year's worth of depreciation the moment you buy it. If you want to trade that car in two years from now, it will be appraised as a three-year-old. But if you typically drive your car into the ground, short-term depreciation won't matter much. Another consideration is that you may find a very limited selection--cars with few options or too many. The last cars to be sold from any model year's inventory are probably the least in-demand ones, but they'll have the best prices.
End of calendar year
Just like the end of the model year, the end of the calendar year is also a good time to buy a car. There may still be "leftovers" from the previous model year available and automakers are looking to close the year with strong sales. They also want to get out what they can because the winter months are typically their slowest season.
Rebates & incentives
Manufacturers offer rebates, incentives, and cheap financing throughout the year, but they often coincide with a holiday, long weekend, or special promotion. Some manufacturers may even put a rebate on a new vehicle just to stir up interest and demand. For example, Toyota is currently offering incentives on its redesigned Tundra pickup truck. These sales incentives can be worthwhile and save you money, so it's a good idea to research the deals that are available.
Check out Consumer Reports' list of the current deals on recommended vehicles. Also, talk with other car buyers in our buying and leasing and best new deals forums.
The best way to shop for a new car is to do the research homework, choose two or three comparable models that have what you're looking for, and then check out what's available by way of financing options. And don't let a big discount lure you into a car that doesn't fit your needs.
