The Best Time of Year to Buy a Car: Insider Tips
Buying a car is a significant decision, and timing can play a crucial role in striking the best deal. Many wonder about the best car buying season and whether there’s an optimal time of the year to get the best bargain. The good news is there are specific times when buyers can leverage seasonal sales and dealership incentives to save money.
Understanding the Best Car Buying Season
Timing their car purchase wisely can save significant amounts of money. The best car buying season typically revolves around end-of-the-year sales, end-of-the-month quotas, and holiday promotions. These periods are especially advantageous due to discounts, clearances, and better negotiation leverage.
End of the Year Sales
One of the best times to buy a car is during the end of the year. Dealerships aim to clear out their old inventory to make room for new models. Thus, they offer substantial discounts, often in the form of rebates and low-interest financing. According to TrueCar, December can bring in savings of up to 8.3% off the MSRP of a new vehicle. Besides, manufacturers and dealers tend to increase their incentives and bonuses during this period.
End of the Month and Quarter
Another prime time to negotiate a car deal is at the end of the month or quarter. Car dealerships usually have monthly and quarterly sales quotas. Sales personnel who are short of these targets are more likely to offer discounts and lucrative deals to close more sales. According to Edmunds, buying a car on the last three days of the month can result in significant savings, with discounts averaging around 6-7%.
Holiday Promotions
Throughout the year, several holidays come with special sales events. Memorial Day, Fourth of July, Labor Day, and Thanksgiving are known for major car sales events. During these holidays, dealerships often run promotional offers and attractive financing options. For example, during Black Friday weekend, statista.com reports that car sales can increase by 63% compared to an average weekend, reflecting the aggressive deals available during this period.
New Model Release Periods
As new car models are released, usually between late summer and early fall, dealers need to make room for incoming inventory. This scenario can lead to excellent bargains on the outgoing models. Kelley Blue Book suggests that August features some of the best deals on cars, with typical savings averaging up to 8.5%.
Key Takeaways
- End of the year is one of the most lucrative times to buy a car due to significant rebates and low-interest rates.
- Car buyers can leverage end-of-month and end-of-quarter sales quotas to negotiate better prices.
- Specific holidays such as Memorial Day, the Fourth of July, and Black Friday often feature major discount events and promotions.
- When new models are released, typically in late summer and early fall, dealers offer discounts on previous year’s models.
Comparison of Savings Periods
| Best Car Buying Times | Average Savings |
|---|---|
| End of the Year | 8.3% (Source: TrueCar) |
| End of the Month | 6-7% (Source: Edmunds) |
| Holiday Promotions | Up to 63% spike in sales (Source: Statista) |
| New Model Release Period | 8.5% (Source: Kelley Blue Book) |
Frequently Asked Questions (FAQ)
- When is the best car buying season?
- Why is the end of the year considered the best time to buy a car?
- How can the end of the month or quarter help in getting a good deal?
- Could holiday promotions be a great time to buy a car?
- Are there specific months when dealers offer discounts on outgoing models?
The best car buying season includes end of the year (December), end of the month and quarter, and holidays such as Memorial Day, Fourth of July, and Black Friday.
Dealerships aim to clear out old inventory in December to make space for new models, leading to substantial deals, discounts, and incentives.
Dealers and salespeople often have monthly and quarterly quotas to meet. This makes them more likely to offer better prices towards the end of these periods to hit their targets.
Yes, holidays like Memorial Day, Fourth of July, Labor Day, and Thanksgiving often feature significant sales events, promotions, and attractive financing options.
Yes, as new models are introduced between late summer and early fall, dealers offer discounts on previous year models to make room for the new inventory. August is usually a great month for such deals.