What is the Cheapest Month to Buy a New Car?
Planning to buy a new car? Making a major purchase like a car can be stressful, especially when it comes to finding the best discounts and deals. Aside from negotiating the price with the dealer, timing your purchase can also affect the amount you pay for a new car. If you’re flexible with your timetable, you might want to consider buying a car during a particular month. Read on to learn which month to head to the dealership to find the best deals on new cars.
Why December is the Best Month to Buy a New Car
According to Edmunds, the best month to buy a new car is December. This is because car dealerships and manufacturers are looking to finish the year off with strong sales, and they’re willing to offer attractive discounts and incentives to hit their goals.
In fact, the average discount off the Manufacturer’s Suggested Retail Price (MSRP) in December is the highest of the year, at 6.1%. This means you can save thousands of dollars on the price of a new car. Additionally, there are often special financing deals and lease offers available, as well as cash-back rebates of several thousand dollars, depending on the make and model of the vehicle.
Other Months to Consider
While December may be the best time to buy a new car, it’s not the only month where you can find a great deal. According to U.S. News & World Report, other months that may have incentives and discounts include:
- January: As the new year begins, many dealerships have excess inventory from the previous year, making it a good month to find deals.
- February: Presidents Day sales often include car discounts, so this is an excellent time to find a deal.
- March: The end of the first quarter is a deadline for manufacturers and dealers to meet sales goals, and they may offer special incentives to meet those goals.
- April: As the weather gets warmer, dealerships are more likely to have more inventory and may offer incentives to attract customers.
- May: Memorial Day weekend may have special deals available, and some dealers may be eager to rid themselves of older inventory.
- June: As the end of the financial quarter approaches, manufacturers and dealers may offer specials to prevent inventory from carrying over to the next quarter.
Remember, there is no magic formula when it comes to finding the best deals on a new car. However, if you’re flexible with your purchasing time frame, you can use these months to your advantage to negotiate a better deal and save some money.
What if I need a car earlier in the year?
If you can’t wait until December or the other months mentioned to get a new car, don’t worry. You may still be able to negotiate a good deal, but be prepared to do your research and compare prices across dealerships. Also, try to shop towards the end of the month when dealerships are trying to meet their sales goals and may be more willing to offer a discount.
Is it better to buy new or used cars?
While buying a new car gives you the latest model and the peace of mind that comes with a warranty, it’s often more expensive than its pre-owned counterpart. Used cars generally have lower prices and have already undergone some depreciation, making them a cost-effective option.
How do you negotiate with car dealerships?
Negotiating with a car dealership may seem daunting, but there are some steps you can follow to make the process smoother:
- Do your research: Know the price you want to pay and do your homework on the make and model of the vehicle you want.
- Be willing to walk away: Remember, you’re the one in control of the transaction, and if you’re not satisfied with the deal, walk away.
- Don’t accept the first offer: Dealerships often give the first price they offer, but this isn’t always the best deal. Don’t be afraid to ask for a lower price or counteroffer with one of your own.
By following these steps and staying firm during the negotiation process, you may be able to get a better price on your new car or trade-in.
Should I make a down payment?
You should consider making a down payment, especially if you’re financing your new car. A down payment can help reduce your monthly payments and may qualify you for a lower interest rate. The amount you put down can vary, but experts recommend putting down at least 20% of the car’s purchase price to avoid negative equity.
Buying a new car is a significant investment and requires careful consideration. However, if you’re flexible with your purchase timelines, December is the best month to buy a new car, thanks to the high discounts and incentives available. If that’s not feasible, consider checking out the other months with significant incentives and be prepared to negotiate to get the best possible price. Whether you choose to buy new or used, remember to do your research, negotiate, and have realistic expectations to avoid overpaying for your new car.