Thinking of buying a new car?
Whatever your reason for purchasing a new vehicle—it’s your first set of wheels, your old car has become a liability, or your family size has changed—timing is extremely important.
Although a big part of your search for a new vehicle will likely revolve around the model, style, and make of the car that appeals to you, availability and affordability are essential, too.
When thinking of buying a new car, it’s important to know that timing can have a huge impact on the overall price you’ll pay. Moreover, according to car-buying experts, waiting just a couple of months before making that big purchase can save you money. In other words, when your need for transportation isn’t urgent, a bit of patience can bring you a much better car deal.
Without further ado, we’ve talked to some experts, and they shared with us some essential information one should know when buying a new car. Check this out!
Purchasing a new car in a post-pandemic economy
The question “When to buy a new car” is a bit complicated to answer because the effects of the pandemic continue to affect the auto industry with a tight labor market, semiconductor shortages, and a looming recession. As a result, prices are high and inventories are sparse, and buying a new car now is different than it was three years ago.
In the beginning of 2022, domestic auto inventories reached their lowest point since tracking started in 1993, according to US Bureau of Economic Analysis data. While it’s currently slightly better now than then, inventory is still down about 500% compared to the 2020 recession’s midway level. Inflationary pressures have driven new vehicle prices up to 40% since February 2020, a new analysis revealed.
Unmet demand for new vehicles has resulted in an increase in used-car prices, which means this could be a good time to purchase a new vehicle if you have a high-value used card to trade in and are flexible when it comes to what to trade it for and when. But it could also be the worst, with a lack of inventory making it pretty impossible to find the pair of wheels you want—or pushing the price beyond your budget.
So yes, buying a new car these days is complicated.
However, there are certain times of the year when you can typically save some money by buying a new vehicle. Let’s find out more!
1. At the end of the month
This trick applies to any month of the year, so if you’re in a pinch to make a purchase soon, this can boost your odds of saving money. The customer who comes in ready to buy a new vehicle at the end of the month may get a better deal if it helps the manager exceed their quota, said Mike Rabkin, founder and owner of From Car to Finish, a new car deals negotiating service and information provider.
Sales managers at dealerships have a monthly target to meet and are paid based on whether they hit it or not, so when a car needs help selling, the end of the month is a good time to make the purchase if you are negotiating the vehicle yourself.
Pro tip: When buying a new car, make sure you brush up on your negotiating tactics beforehand.
2. At the end of the day
According to experts, new car deals that can be found at the end of the day, or even on a certain day of the week, can also result in savings. Finance and sales professionals are ready for quitting time, but an eager salesperson won’t let a customer walk away without buying a new car.
The day of the week can also play a key role in pricing. A recent study found that Sunday was the best day of the week to make the big purchase, with discounts averaging 10% compared to Thursday, which was the worst day to buy.
Pro tip: Know which vehicle on the lot you want, then hit the dealership just before closing.
3. When a rebate is being offered
When thinking of buying a new car, it’s important to know that sometimes dealers give temporary rebates in order to completely clear out a model year during specific days of the year. This could get you significant savings.
These days can occur at any time of the year, so dealers can sell a vehicle for less when they’re able to use those incentives. They can be a flat rebate per car sold or a stair-step incentive, which requires a dealer to reach a preset sales target set by the manufacturer based on a certain dealer’s normal sales volume.
Pro tip: Before buying a new car, make sure you use an online search tool like Edmunds to find incentives and rebates by ZIP code and vehicle make.
4. When models are on the way out
When new car models come out, dealers are eager to get rid of the old and replace them with the new. So it pays to keep an eye on the model releases and pull the trigger to buy right before the next best thing is released.
According to experts, buying a new car results in considerable savings, especially if you’re looking for end-of-year models. Since the dealer is paying to inventory these units, they need to free up both space and cash for incoming, newer models.
Experts also point out that December is the perfect time to get the best vehicle prices because the last month of the year has the highest incentives and discounts.
Pro tip: When buying a new car, stay up-to-date on sales to see when older models will likely drop in price.
5. Black Friday
Black Friday is when several events line up in the customer’s favor: dealers are trying to get rid of older inventory for the new year, as well as trying to hit quotas at the end of the month. Also, because most buyers are at the stores, you probably won’t have to deal with a crowd at the dealership.
Pro tip: Because Black Friday announces the end of the model year, focus your search on outgoing models when buying a new car to get the best price.
Now, which are the worst times of the year to purchase a new vehicle?
1. At the beginning of a new model year
Although the sleek new look of your desired car may be enticing, think twice before spending your money on a few extra curves or driver perks. Underneath, the car may be exactly the same, but appearances often have a higher price.
Carefully consider the differences between model years and decide whether a new feature, such as heated seats, is really worth shelling out top dollar.
2. In the spring
When considering when to purchase new wheels, you should think twice before buying a new car in the spring, according to USAA. Tax refund season is in full swing, winter weather is no longer an issue, and the summer travel season is on the horizon—all of which are circumstances that make people more likely to be interested in getting a car.
When a dealership has an increase in willing buyers, it isn’t as likely to offer discounts and incentives.
When you purchase a car, it’s important to also get a car cover to protect your new acquisition. Here are some good options you may be interested in!
If you liked our article on things you should know when buying a new car, you may also want to read Created to Last: These 9 Cars Have the Greatest Potential Lifespan.
