A new vehicle purchase is a significant investment that requires careful consideration, especially with the average price of a new car now surpassing $40,000. Before heading to a dealership, it’s crucial to factor in when to make that purchase in order to maximize savings and benefits.
Best Times to Buy a Car
While the excitement of owning a new car may be building up, it’s essential to time your purchase strategically. Car deals are not consistent throughout the year, and there are specific periods when dealerships are more motivated to move their inventory, leading to better offers and negotiations.
Understanding sales cycles and dealership goals can help you pinpoint the best times to buy a car. End of month/quarter, end of year, beginning of the year for used cars, major holidays, long weekends, early in the week, end of a model’s life cycle, during a model changeover, and when additional perks are offered are all opportune times to secure a good deal.
Worst Times to Buy a Car
On the flip side, there are less favorable times to shop for a car. Avoid shopping early in a model year, immediately following a new model’s launch, and at the start of a new month if you’re looking to negotiate a better deal.
How the Global Microchip Shortage Affects Car Sales
The ongoing global microchip shortage has significantly impacted the car industry, leading to reduced car inventories and higher prices due to increased demand. Buyers during this time should be prepared for a seller’s market and potential markups above the manufacturer’s suggested retail price.
During this period, used car prices are also on the rise, with dealerships less likely to offer discounts. Buyers may need to adjust their expectations or consider leasing as an alternative to buying.
Can you negotiate better prices during favorable buying periods?
As a consumer, taking advantage of optimal buying periods can give you more bargaining power at the dealership. By being prepared to negotiate and understand your leverage during peak sales times, you can potentially secure a better deal than expected.
Is there a specific time of day when you should head to the dealership?
Heading to the dealership early in the day, preferably on a weekday, can work to your advantage. Salespeople are more alert and the dealership is typically less crowded, allowing for a smoother and potentially faster buying process.
Can your lease ever be used in a deal?
If you have a leased vehicle and the dealership reaches out to you, they may offer a “pull-ahead” program to end your lease early and reintroduce your vehicle into their inventory. This can benefit both parties and bring you back into the leasing cycle sooner.
The Bottom Line
When purchasing a new vehicle, strategic timing plays a crucial role in securing the best deal. By aligning your purchase with favorable periods and understanding market dynamics, you position yourself as a savvy buyer ready to make an informed decision.