Your Next Car Purchase: When Is the Best Time?
By Steve Wedig
Many of the things that we purchase have a season when the price is best. Buying fruit in the summer costs much less than in the winter. Buying sweaters in February makes a good deal more likely. The cost of these items is fairly insignificant, but some bigger purchases can also vary in prices as the seasons change. For example, did you know that there are some times that are better for a new car purchase than others? Here are some tips on taking advantage of timing in your next auto purchase.
The End of the Year Is Best.
While it is probably the last thing on your mind around the busy holiday season, the end of the year is actually a great time to go shopping for a car. Salespeople are often trying to reach year-end sales quotas and ensure that they will receive an incentive bonus. As the last days of December fly by, they see time running out. Since people are so busy with other things at that time of year, less are out looking for a car. With fewer buyers, salespeople are more motivated to get cars moving in order to meet their quotas. In addition, dealerships are often trying to clear out older year models at this time of year. Buyers who don’t need the latest year model can get a good deal on a car from last year that is still relatively new.
Other ‘Ends’ Are Good Too.
If you consider all the obligations you have in December and decide that it is not the right time to add buying a car to your to-do list, don’t despair. There are other good times to shop. Many dealerships offer their sales staff bonuses based on quotas on a monthly or quarterly basis too. If you can do your shopping at the end of a month or quarter, you will have a better chance of finding someone who is willing to be more flexible in order to make a sale. Another good time is at the end of a model year. Dealerships want to clear out the old inventory to make room for the new. Usually this happens in the late summer or early fall, though timing may be different depending on the model.
You Must Be Willing to Walk Away.
Finally, another way to look at this issue is that the best time to buy a car is when the seller’s need to sell a car is greater than your need to buy a car. This gives you leverage in negotiating a price. You don’t want to look for a car when you are desperate to buy one immediately. The seller can take advantage of this weakness and you could end up paying much more than what the car is worth. On the other hand, if you are willing to walk away from an unfavorable deal, you can get a good car for a good price.
If you are considering a new car purchase in the near future, don’t forget about your financing. Federated Bank provides flexible auto loans. We can help you make wise decisions about how much car you can afford and what payments will fit in your budget. Come in and talk with a branch manager to see what auto loan options are available to you.
