If you’re trying to find the best time to buy a car, you’ve probably heard that the end of the year is a great window of opportunity to cash in on some perks. Consumers who do a bit of homework can save money as dealers become increasingly committed to moving old inventory in order to make room for the newer models. This puts car buyers in the driver’s seat when it comes to getting a good deal. Let’s take a look at a few benefits of buying a car at the end of the year.
Buyers can take advantage of many dealers' model year-end sales events. In an attempt to boost sales, dealers may offer cash back towards the purchase of specific car models. More often than not, manufacturers may also offer incentives for the dealers to motivate them, in many cases, these incentive bonuses can be passed on to the buyers.
In another attempt to increase sales, many dealers offer excellent in-house financing deals, including 0% finance, to attract potential car buyers. 0% financing allows car buyers to make monthly payments against the car loan without any interest. This can add up to considerable savings. But is 0% finance too good to be true? It depends. If the car buyer could have gotten a much better price on the vehicle without the special financing, it might not work in the buyer’s favour in the long run. That said, dealers may allow both cash-back offers and low financing, allowing buyers to truly save a considerable amount on the actual price, including any interest, for purchasing the car.
The longer a car sits on the lot, the more willing the dealer will be to sell the car at a discount off the sticker price. Consumers can research which models are most likely to remain unsold by the end of the year, giving them bargaining power when it’s time to negotiate.
Many dealers will reduce a car’s price after it has been on the lot for a few months. A little homework can give car buyers an edge when it comes to negotiating. Buyers may find a better deal by visiting the showroom that has the greatest need to reduce inventory.
A Buyer's Market
Year-end car buying can give consumers an advantage in finding the best deal. Dealers often focus on selling old inventory and make room for newer models as having old inventory on hand can steer customers away from the profitable models. As such, dealers are often willing to negotiate, reduce prices and offer incentives to year-end car buyers - especially those who do their homework.
Should You Buy a Car at the End of the Year?
The right time to buy a car is when you have found the vehicle you love from a dealership you trust at a cost that you are comfortable with using the current incentives and selection to your advantage. While buying a car at the end of the year has its advantages, the important thing is that you drive away from the dealership in a car you love at a price you can afford - and only you know when the timing is just right for that to happen.