The best times to buy a new car
The value of a new vehicle usually falls as much as 20 to 25 percent
the minute it's driven off the dealer's lot. In fact, depreciation is
the biggest expense you'll incur during the first five years of
ownership. So it only makes sense that you buy the car at the lowest
possible price. That doesn't necessarily mean you have to learn the fine
art of haggling. Simply going to the dealership at the right times of
year already gives you an advantage. Here are the best times of year to
buy a car and save money:
End of model year
A
car's "model year" more or less describes when it is produced. Before a
manufacturer releases the new model year, dealers want to get the
previous years off their lots. New model-year cars are more desirable
since they almost always command higher sticker prices than previous
models. Having the old model years around for comparison, isn't in the
dealership's best interest. So why not help the dealership out - and
help yourself to some savings?
Most new model years begin showing up on lots in late summer (many
2009 models are on dealer lots, even though we're still in the 2008
calendar year) and continue through the fall. There are also usually a
few stragglers that come out in winter or even further into the new
calendar year. That means that in most cases, you can get a brand-new
2008 car for a steal, simply because there's a 2009 model sitting right
next to it. But before you rush out to get those previous models, make
sure you are okay with buying one. Obviously, a discount is the upside,
but there's also a downside. Consumer Reports explains: "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."
Also make sure you know if the newer model is a carryover or a
redesign. A carryover is almost identical to the previous model and
hasn't changed much, except maybe for the addition of new features. A
redesign, on the other hand, means the manufacturer has more
substantially tweaked the car's performance, exterior or interior. It
may make sense to buy a carryover as a previous model. But since a
redesign is essentially a different car, thoroughly test the previous
and new models to make sure you choose the right one. Of course, you'll
get deeper discounts on previous model years that end up having
redesigns - and that goes double for those that end up being
discontinued.
Holidays:
Long weekends and holidays are prime times to shop for a new car
because dealerships are expecting you. They almost always have
incentives, rebates and financing deals to entice shoppers. You'll
probably hear about these sales on TV or the radio, but it's a good idea
to research them ahead of time so you can find the best deals out there.
End of the month
Because car salespeople have monthly quotas, they'll be more likely
to make deals near the end of the month - usually during the last week
or even weekend.
However, don't expect that every salesperson you come across is going
to give you a good or fair deal rightaway. Some will, but others will be
more difficult and could try to take advantage of you.
End of calendar year
Just as they have monthly quotas, dealerships have yearly quotas as
well.
This makes the end of the calendar year another prime time to buy.
Cars.com notes:
"Automakers often look to close the year with strong sales as they
prepare for January and February traditionally bleak sales months in the
car business."
Again, since salesmen may be scrambling to sell you a car, make sure
to do your research ahead of time and prepare yourself. |