Maskot/ Getty Images; Illustration by Austin Courregé/Bankrate
Key takeaways
- The best time to buy a car is typically at the end of the year, during holidays or at the beginning of the week.
- Mondays are often the best day to buy a car as salespeople are more focused on potential customers.
- Pay attention to the end of the month, quarter and model year to take advantage of sales quotas and new car releases.
New car prices have remained fairly steady over the last year, although prices are significantly higher than a decade ago, according to Kelley Blue Book. With interest rates expected to remain stable, it could be the best time to buy a car — as long as you know when to go shopping.
The best time of year to buy a car is usually around the end of the year since salespeople will be trying to meet their quotas and may offer steep discounts. However, you should also consider holidays — like New Year’s Eve — and the beginning of the week.
What are the best days and times of year to buy a car?
While there is no secret recipe for getting a cheap vehicle, you can save more money on your new car if you can be flexible with your timing. Shopping at the beginning and end of the week, month or year, for example, can translate to extra savings on that sticker price.
Holidays can also be a great time to secure a sale. The best time to buy a car can vary from dealership to dealership, but consider times when you might have better luck catching a deal.
1. Mondays
Monday can be the best day of the week to buy a new car. Other potential shoppers are often at work, so representatives at car dealerships are focused on anyone who comes in the door.
“Come Monday, everyone has made a lot of good sales and enjoyed the activity of a busy weekend,” Brian Moody, lead editor of Autotrader and Kelley Blue Book says. “If you call or email a dealer on a Monday, there is a chance that you’re going to get either a better deal or simply more attention. If the person has more time, they might throw in something extra such as free oil changes or free car washes.”
Bankrate tip
Research the vehicle you are interested in purchasing ahead of your trip to the dealership. This way, you know what to expect for the out-the-door price.
2. End of the year, month and model year
For the best time of year to buy a car, October, November and December are safe bets. Car dealerships have sales quotas, which typically break down into yearly, quarterly and monthly sales goals. All three goals begin to come together late in the year.
“The end of the month, the end of the quarter, the end of any period is usually a good time to go,” Moody says. “That’s when there might be bonus opportunities for the salesperson or the dealer that give them extra incentive to want you to leave in a new car.”
In addition to the end of the calendar year, it’s important to keep an eye on the end of the model year — when the newest versions will start hitting the road. Moody says manufacturers generally begin releasing new cars in fall, but there are some exceptions.
“If you pay a little bit of attention to see when the press is starting to share reviews about new cars, it means the release is imminent,” he explains. If you’re considering buying an older model, it’s wise to wait for the most updated version to roll out.
“While you might be able to land a deal on the older model, it’s wise to consider holding out for the updated version,” Moody says. “Surprisingly, a new car can be more affordable vs a used car IF you’re looking for a lightly used car – especially when interest rates are high.”
“Anyone looking for a $10,000 used car is never going to find a less expensive new car. Even if you are looking for a new car, waiting for the all-new model can get you more features at about the same price,” he adds. “It’s very rare that an all-new version of a model comes out, and it’s $5,000 more. It’s usually a few hundred dollars more, but it includes all kinds of new features and better gas mileage.”
3. Holidays
Holiday sales can also offer deep discounts. Here are a few holidays that are especially great for buying a car:
- Presidents Day: The first few months of the year tend to be slow for all consumer activity, including auto sales, but some manufacturers work to spur spending over Presidents Day weekend.
- Memorial Day: Summer is typically among the most expensive times of year to buy a car, but dealers tend to cut prices back around Memorial Day. Next year’s models often trickle out around midyear, reducing the price of cars already on the lot. Beware of big crowds, though. As the weather improves, other buyers may be looking to score the start-of-summer deals.
- July Fourth: Plenty of dealers will work to entice car buyers around the celebration of America’s independence. However, if you don’t need a car immediately, consider whether you can hold out for potentially bigger discounts available closer to the end of the year.
- Labor Day: The unofficial end of the summer is officially one of the busiest times for buying a new car.
- Black Friday: Car dealerships join the Black Friday sales craze, just like the rest of the retail industry. In addition to manufacturer-offered incentives, you may be able to get better deals from your salesperson. “For example, around Christmas, the person who’s helping you might want to get home to his or her family and be more eager to wrap up the sale,” Moody says.
- New Year’s Eve: If you can swing it, New Year’s Eve may be one of the best times of year to shop for a car. Salespeople could be facing monthly, quarterly or yearly quotas on New Year’s Eve, and if they meet their sales goals, they could earn a hefty bonus. This could make finding a favorable deal easier.
How to get the best deal at the dealership
Regardless of when you decide to buy a car, you will need more than perfect timing to get a good deal. Consider the following tips to get the best auto loan rate, no matter the calendar timing.
- Know what you can afford: Calculate expected monthly payments to have a strong gauge of what you can afford. Analyzing your finances will help you know which rates you will qualify for.
- Get a few quotes: It’s wise to get a few quotes from lenders. This way, you can gauge if the dealer’s financing is a good deal.
- Research: Do some upfront research on vehicles and lenders to get the best rates. Be sure to do your homework to help you avoid common car-buying mistakes and gain negotiating power when you arrive at the dealership.
- Improve credit: “No matter what, always know your credit score before shopping,” Moody says. While interest rates are based on a few factors, your credit score is most important. Take the time to build your credit before applying for loans to get the most competitive rate.
“A new car shopper should be paying attention to things like new car reviews, auto shows, and how long a specific vehicle they might like has remained unchanged,” Moody adds.
Bankrate tip
Some offers are specific to certain credit scores. Zero percent financing, for example, is best for those with excellent credit. There are also bad credit loans if you don’t have time to improve your score before buying.
Bottom line
Waiting for the best time to buy a car requires patience. If you can hold off on a purchase, time can be your ally. Although pricing isn’t currently in consumers’ favor, keep an eye out for incentives and deals during upcoming holidays to maximize your savings. Narrowing your top car choices and picking the right time of year to buy a car — or the right month or day — can help you save thousands.
Read the full article here
