Most people dream of having a car and some need it as a necessity for their daily life. Either way, owning a car can make a significant change in a person’s life. It makes transportation more accessible, which makes going to work or travelling more convenient for an individual or their whole family. Unfortunately, a car is not as affordable as most people want it to be. However, some lenders and dealers offer agreeable car finance rates that you can check out if you wish to purchase a car now.
The Best Time to Buy a Car
Now that you have an option for funding your purchase, you may be thinking if this is the best time to buy a car. This bit depends on many factors, including your readiness to buy, the availability of your funds, the availability of the car model that you want, etc. However, if you are waiting for a big sale or amazing deals, then your timing is perfect since the holidays are coming up. The holiday season does not only bring festivities, but it also brings big sales and discounts. But keep in mind that you should still pause and think of the things you need to consider like the quality of the car, its warranty, etc.
Big public holidays and the last three months of the year often offer significant car savings. You should also look out for model changeover periods too.
Here are some of the best time to buy a car:
1. The end of the year
Generally, many sales and discounts are going on from October through December, so they are the best months of the year to buy a car. Since the new year is just around the corner, both buyers and sellers are expecting a fresh lineup of vehicles, which results in massive discounts on outgoing-year models.
The end of the year is a great time to buy a new car since dealerships grow increasingly motivated to sell cars built that year. Since those models will soon become last year’s model, their price will significantly go down during the year-end sale. The dealers are trying to get rid of the old models so that they will have the new models on the showroom floor. December offers the deepest discounts. So get in the holiday spirit and give yourself a gift!
Since this is the case, you can also expect that many new cars sold in January were also built the previous year. Buyers cannot expect to display or sell current-year build in the first few weeks of the year due to shipping lead times. If you haven’t gotten yourself a car within October to December, then clearance deals can get even better into the New Year.
2. New Year’s Eve and New Year’s Day
As mentioned previously, car dealers have big sales at the end of the year, so great deals abound. However, some may argue that New Year’s Day rivals New Year’s Eve as the best day to buy a car. This is because, due to the New Year’s Day holiday, the first and second day of January fall into the December sales reporting month for dealers.
Given these facts, it really pays to ride out year-end sales. You should buy your new car during the early-year plate clearance sales. Even by February, a car built the previous year will be offered among new cars built that year, but they will be at a discounted price.
3. The end of the financial year
There are two kinds of new years; one is the New Year that we love and celebrate in January and the other one is the end of the financial year. The fiscal year ends in June for Australia, and it happens to mark a new car sales season as well. Brands and dealers are enthusiastic and motivated to hit their targets and boost financial year sales figures around this time.
Monthly car sales volumes are up considerably during this period. You can take advantage of discounts and in some cases receive a bonus of extended warranty, roadside assistance or accessories. Some dealership bundles their sale with a discount on window tinting, alloy wheels or floor mats.
This time of the year is beneficial for business buyers, since purchasing a car gives them a tax advantage soon after claiming an expense.
4. End of the month
Some car dealers have end of the month sales. This kind of sale may not be as big as a holiday or year-end sale, but it is quite helpful if you are watching your budget. Monthly and quarterly sales targets are the motivation for both dealerships and their sales staff with bonuses at stake.
Keep in mind that the actual sales deadline falls a few days before month-end. So you may want to shop around the 27th, 28th or 29th day of the month, instead of looking around on the last day.
Dealers often get a bonus for reaching their targets at the end of the month. So you can expect to see a lot of dealerships offering discounts on their car models so that they can reach a certain volume. You will need both luck and good planning to get the timing right. It is possible to buy a car discounted to the point of a steal because the dealer will achieve a significant manufacturer bonus by selling just a few more cars.
5. Early in the week
Auto dealers are busy during the weekends and the days leading to it. So shopping for a car early in the week will help you get a better deal. The sales traffic in dealerships stores are generally low during Mondays, or even rainy days. Since there are only a few people to assist, you will have more opportunities to negotiate and get a better deal. Even when there is no special deal on a dealership, if it is a weekend, there will still be a lot more people in the store.
You should be flexible with what you want. If you want to get the best affordable deal, buy the car they already have in stock.
6. Model Changeovers
Model changeovers are when new car models get discounted because newer and fresher versions with updates are released. Model changeovers will give you a bigger opportunity to save a lot of money on a new car model. A prior-year model can offer almost all the same features as the current-year model at a far lower price. Typically, new car models are released in September and October. These months tend to bring in good deals at dealerships on outgoing-year models.
If you are eyeing a model that is being redesigned or discontinued, then you are in for a treat. These kinds of models are often put on an extra-big sale so they can make room for newer, more desirable vehicles. Even if they are not initially on your radar, it is information that you may find useful when you are deciding on the car model to buy. They may not exactly be what you had in mind when you initially started thinking about a car, but choosing to buy them instead of a new model can help you save thousands of dollars.
If a car model has been around for more than three or four years, then it gives you more negotiating power. Models that have been around for that long are due for an update. If a model has been around for six or seven years, there could be an all-new model coming. Both scenarios mark good times to bargain hard on a soon-to-be-outdated model.
About Buying an Outdated Model
You may have noticed that most of the best times to buy a car coincide with the release of a new car model. This is because cars depreciate fast. However, there is no harm in doing your own homework and shopping around before making a decision.
Do your research on the car model that you want. You can indeed save a lot of money by buying a less updated or an outdated version of a car. However, this is not always the case. Before you decide and sign an agreement with a car finance company and your car dealer, make sure that you are making the right decision. Some forthcoming model might have improvements or extra features that don’t necessarily have a price increase. If that’s the case, there is no point in buying the old version other than just depriving yourself of the new updates.
If that is not the case, and the new version has increased the depreciation of the old model, you can get a discount upfront. But take note that there will be a corresponding reduction in what your superseded model is worth as a used car too.
You do not have to do the shopping on the same day that you buy your car. As mentioned previously, it is still better if you do your research. You want to check the vehicle, your car options, and your car finance options. You want to make sure that you are eligible for an auto loan and that you are buying a car model that has the best value for its price. The best time to buy your car still depends on how ready you are for it, however, just a gentle reminder that the holiday and year-end sale is right around the corner. Don’t miss your chance.