Buying a car is perhaps one of the most expensive purchases you’re going to make in your life — besides buying a house. The cost of a vehicle varies depending on the month, day or time of the year. So knowing the best time to buy a car, whether it is new or used, can save you thousands of dollars.
The key is to be ready to make a move when the right time presents itself.
If you’re planning to buy a set of wheels in the near future, here’s a list of the best time to buy a car.
- The best month of the year to buy a car is December;
- Best time of the month to buy a car;
- During the holidays;
- Buy a car when there is high supply and short demand;
- When you’re buying an old model car;
- The best time to buy a car is when your finance is organized;
- Buy a car when you have a good credit score.
The best time of the year to buy a car: December
December is the perfect and ideal time to buy a car, whether used or new, for several reasons. One reason is that car dealers are desperate to meet annual quotas at the end of the year.
If they can achieve their quotas, that usually means they will get a bonus. As they get closer to the end of the year, they are more willing to drop the prices.
They may even sell at a loss just to meet their quotas. As a buyer, this is a good opportunity to pitch a low price on a car a dealer has in stock.
Second, car dealers need to get rid of this year model for the new year model. As the new year is quickly approaching, car dealerships will start thinking about the new models.
And once they get into January and start taking delivery for the new-year models, they will do everything they can to get rid of last year model in December, including lowering their prices.
There’s not too much competition in December among buyers. Another reason that December is the best time to buy a car is that there is less competition.
People tend to be more occupied with Christmas shopping and traveling to visit friends and family in December.
So that means fewer people are visiting car dealerships in December, making it harder for car dealers. That it turns make them more willing to lower the price of the car.
Car dealers have more competition among themselves in December. Because fewer people visit car dealership around this time, care dealers tend to fight with each other to make a sale.
As a buyer, if you receive a quote from one car dealer and threaten to go elsewhere, the car dealer will more likely give you a better deal.
For all of the reasons stated above, the month December is the best time to buy a car.
Supply and Demand
If there is a short supply for a particular car that you want and there is a high demand for it, 10 out of 10, it will not be on sale or discounted –regardless of the time of the year.
So, this would not be the best time to buy such a car.
On the other hand, if a car is unpopular and the supply for it exceeds demand, it will be more likely to be sold at a discount.
Comparing a range of car loans will help you identify the best one for you.
End of the month: best time to buy a car
The best time to buy a car is the last day or the last few days of the month.
As explained above, many car dealers have certain sale quotas to meet for the month. As the end of the month is approaching, they will review their numbers.
And if they are behind, they’ll be more likely to lower their prices. This is a good time for you to purchase your vehicle.
While December is the best time to buy a car, you may not have the time to wait for that long.
Indeed, one reason you’re buying a car might be for work or family commitments.
If that’s the case, you have other options. The holidays are some of the best time to buy a car.
Some of the months are the worst time of the year to buy a car. But holidays have great sales and offer great discount.
They’re the perfect time to buy a car. In fact, it’s common for car dealers to lower prices of their cars during holidays, such Memorial Day weekend, Labor Day, and Black Friday.
When it’s time to borrow money to buy a car, shop around. Don’t just go to your bank or agree to the car dealer’s in-house finance because it seems easy in the moment to do so. Compare and assess the finance options from a range of reputable lenders.
Best time of the week to buy a car
Timing is important when it comes to buying a car. But how do you know the best time of the week to buy a car. It’s simple. Avoid the weekend.
The key is to show up to the car dealership when there are fewer buyers. Fewer buyers than less competition.
Therefore, there is a low demand. So, shop for your car on a Monday, Tuesday or Wednesday when people are typically at work.
Those days tend to be the slowest. Therefore, you may be able to negotiate a more affordable deal.
Buy an this year car model
When a new car model is coming, sales of the this year car model will typically decline, simply because buyers prefer to wait for the new car model.
Demand therefore drops for this year model. And car dealers have no choice but to lower the price of the old model to make sure the old stock sells before the new stocks arrive.
As a buyer, this is an ideal time to buy your car.
When your finance is organized
The best time to buy a car is not whether you can get one on sale. Rather, it’s whether you are financially ready.
Yes you can a get car at a discount and save money along the way.
However, it can also be a costly mistake if your finance is not in shape.
For instance, you still have to think about the car loan payment you will pay every month. And if for some reason you can’t make these payments down the line, there’s the risk of a default.
In other words, being unable to repay your car loan could result in your car being seized and your credit profile being damaged.
So, the ideal time to buy a car is when you’re financially ready.
When you have a good credit score
You will need a good credit score in order to get approved for a car loan. Even if you can get a loan with a bad credit score, the interest will like be outrageous. So, request a free copy of your credit report.
If your credit score is bad, it may not be the best time to buy a car. It makes sense then to postpone on buying a car and take steps to raise your credit score.
The bottom line
Timing is an important factor to consider when to buy a car. In other words, the best time of the year, the month, the week to buy a car can make a big difference to your financial situation.
As you can see, the month of December is by far the best time to buy a car. But you shouldn’t be in a hurry to buy a car if you’re not ready or your financial situation is not in shape. Patience is key.
If you’re set on a particular car, then a car loan is going to be the next step. There are many options available. The key is to shop around and compare. By comparing different loan offers, you can pick the best one that will save you money.
Up Next in buying a car:
Work With A Financial Advisor Near You
If you have questions beyond the best time to buy a car you can talk to a financial advisor who can review your finances and help you reach your goals. Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.