This is the Best Time to Buy a Car
How much does timing matter when buying a new car? A lot, it turns out! We reveal the best time to buy a new car—a strategy that could save you thousands of dollars.
The Best Time to Buy a Car
According to the old saying, “good things come to those who wait.” These words of wisdom should certainly be taken into consideration by anyone shopping for a new car. If your need for a new car isn’t urgent, it’s best to do your research beforehand and plan the best time to buy a car, as a bit of patience—and strategy—can save you hundreds or even thousands of dollars. Use these tips to find out how to best time your next vehicle purchase and save your hard-earned money.
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Does it help if I buy my car at the end of the day?
While there are exceptions to every rule, experience shows that you are more likely to get a great deal on a new car towards the end of the day, just as the salesperson is about to leave the showroom. This is because the salesperson is probably less likely in the mood to negotiate, and might just want a quick and hassle-free sale and give you a great price right from the get-go. So be sure to get your sleep the night before and prepare yourself for an after-dinner negotiation session that gets you a great deal on your car.
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Does it help if I buy my car at the end of the month?
A little-known fact about the automotive industry is that many manufacturers offer big bonuses to dealerships and salespeople who sell the highest volumes of cars. These bonuses are paid on a monthly basis which means that the dealership might actually be willing to sell the last two or three cars of the month at a loss if it means the difference of making the volume quota or not, knowing full well that the profit from the sales bonus will offset any loss taken on those final cars. However, this strategy doesn’t always work as some dealerships may hit their sales quota earlier in the month, not to mention that some models are rarely ever discounted regardless of the time of month.
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Does it help if I buy my car at the end of the year?
It’s no secret that the most sizeable incentives and discounts on new cars are available towards the end of a year—an old tactic used by manufacturers and dealerships to clear remaining inventory of current model year vehicles to make room for next year’s models. During the final months of the year, many manufacturers offer up to five-figure discounts on top of attractive finance and lease rates on many models. That said, some trade-offs of buying a car at the end of the year include that you’ll be constrained to whatever inventory is remaining on dealer lots and the fact that most current model year vehicles have lost a portion of their initial value as a large part of the year has already passed.
Does it help if I buy my car when there’s snow on the ground?
Historically speaking, new vehicle sales in Canada are stronger during spring and summer months than in fall and winter months. As an example, new vehicle sales in Canada for May 2015 totalled 198,000 units while new vehicle sales in December of the same year totalled 129,000 units. That said, a slow sales month might translate into hungry salespeople looking to move inventory, resulting in more aggressive pricing. So put on your snowsuit and get yourself into those dealership doors, as you’re bound to save yourself some money!
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What if I want to buy a car right before the new model is about to be released?
Most vehicles have a five to six year life cycle before receiving a facelift or redesign, and buying a new car right before the new generation is released can contribute to big savings. This is because the manufacturer is fully aware that most consumers have their eyes on the newest model (which most likely won’t have any incentives yet) meaning that consumers willing to opt for the previous generation will be eligible for a hefty discount. The great thing about buying an outgoing model is that you’ll still get a brand new car backed by the same manufacturer warranty and with great discounts to boot!
Next, uncover the truth about new car incentives.