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Admit it: you fancy a brand new car. You want the new car to smell so bad you can almost taste it.
Hold your horses before you go to the dealer and drop your old car. A little patience and planning can go a long way.
There are many factors that make a car cost a lot, such as: B. Your creditworthiness, how much money you save and the value of your trade-in. But there is one more factor that you don’t want to overlook and that is timing.
As it turns out, some times are way better than others at getting a deal on a new car. Let’s take a closer look.
Best times to buy a new car
The end of the month
If you have time to wait, a simple tactic will wait until the end of the month when sellers try to hit their monthly quotas. During this time, you usually have a little more room to negotiate.
For example, you can look up early in the month and contact a sales rep around the middle of the month for a price estimate. Then wait until the end of the month before playing hardball and negotiating the deal.
TIP:It’s also a good idea to speak to two or three car dealerships to see how the prices compare. With this data, you can speak to the sales rep more confidently and are less likely to accept a deal that is not in your best interests
The end of the year
The time of year is also important when buying new cars. As with monthly quotas, distributors and sellers have annual sales targets to meet.
Towards the end of the calendar year (October through December), car dealers tend to be more aggressive in moving cars out of their showrooms to make room for inventory in the new year. It’s also their last chance to make additional sales as January through April is usually the slowest season for auto sales.
Again, there are several options available so that you can keep the negotiations going until the last hour, even until New Years Eve if you are even lucky enough to get the best deal of the year.
Car dealers love holding sales on holidays, especially three-day weekends.
Some of the best vacation auto sales events include Labor Day, Memorial Day, Veterans Day, Presidents Day, and July 4th. Many car dealerships are also participating in Black Friday sales to increase year-end sales.
Monday is generally considered to be the best day of the week to buy a car. This is because sales teams typically sell a lot of cars on the weekend and are fewer buyers on Mondays.
If a sales rep is having a great weekend selling cars, they may be able to move a vehicle for less money just to top up their numbers. And if the employee is having a lousy weekend, they may be able to sell a car to change their luck or hit their numbers. In any case, Monday is a good day to approach business.
Worst times to buy a car
The beginning of the model year
Dealers are unlikely to offer the best prices on new cars as the new model years begin. That’s because they usually like to hold new cars for a couple of weeks to measure interest and see how they move before offering discounts.
Car buyers should better wait at least a few months after a car comes out to shop. If a new model year is available at the same time, you may receive a special discount for an older model.
The beginning of the month
It’s also usually a bad idea to buy a car earlier in the month when sales teams are less pressured to close deals and meet their quotas.
Whenever possible, look to the beginning of the month but wait until the last few days before the calendar changes to negotiate aggressively.
Saturday is usually the busiest day for car buying as consumers have most of the time to drive around and shop. Dealers are well aware of this and typically don’t offer the best deals on cars that day.
If your time is limited and Saturday is the best day for you to buy a car, all you should do is check out the vehicle you want and take a test drive. You can then return on Monday to close the deal.
Tips to consider when buying a car
Make sure you really need a car
Shark Tank Star and legendary investor Kevin “Mr. Wonderful “O’Leary is a huge advocate of avoiding new cars. Cars cost a fortune, according to O’Leary, and depreciation is a big problem because they never increase in value.
In addition, many of you may be working from home with easy access to public transportation or carpooling. You can also rent a car if you need one or invest in a bike.
Before buying a car, think twice and determine if you really need one or if you just want one to make life more comfortable. The better approach might be to put your money in tax-friendly retirement accounts or brokerage accounts so you can raise your money and retire sooner.
Do your homework
Before you go to the auto dealer, do some research online using popular resources like Kelley Blue Book, Consumer Reports, and Autotrader.
Any of these websites can give you a clear understanding of the fair market value of your trade-in (if any). You can also experience the value of the “blue book” of the new car you are thinking of.
You should also visit online marketplaces like Cars.com and CarMax so you can see multiple price examples for similar makes and models. Then when you visit the dealer you will have some reference points in mind.
Understand your budget
When deciding to buy a car, don’t go shopping until you’ve figured out your budget.
If you get into the process because you’re excited about the latest TV commercial you’ve seen about your dream vehicle, you may regret your decision down the line. You may even have high car payments that you can barely afford, which is a personal financial disaster.
Also, keep in mind that the final sale prices of most cars are almost always higher than they are on TV. Factor in the cost of gasoline, maintenance, and auto insurance, and you may find that your total monthly payment is as much as some people pay for rent or a mortgage.
Stick to your budget and avoid getting too deeply into debt. If you really need a car, try starting a sideline to supplement your income so you can pay off your car quickly.
Drop the bells and whistles
Consider a standard model to save money. Your car is not going to increase in value, so there is no point in adding fancy features. Financially, you are much better off if you can save and invest the extra thousand. You will likely need that extra cash for repairs at some point as well.
frequently asked Questions
Is there a best day to buy a new car?
Yes. Monday is usually the best day of the week to buy a new car. This of course depends on a variety of factors, and every trader is different. But Monday is usually seen as a great day to close a deal on a new vehicle.
What are model year transitions?
Model year transitions occur when car dealerships get the latest car shipments from manufacturers. They are usually a terrible time to buy the latest make of a new car. However, you could potentially get a good deal on an outbound model.
Most of the time, it’s perfectly fine to buy last year’s model unless there are security features or enhancements that you don’t want to sacrifice.
Should I buy a new or used car?
This depends on your personal preferences, budget and driving needs.
Personally, I avoid buying new cars even though I have done well financially. It’s just not worth it to me. But I don’t have to drive nearly as much as others.
Do You Need A Good Credit Score For A Car Loan?
The short answer is yes. A good credit score makes a difference in terms of the interest rates you pay on your car loan. And when you have terrible credit, you may not be able to qualify for a loan.
Before applying for funding, do a credit check to see where you stand. (This is a good strategy to follow on a regular basis – you should always know your creditworthiness).
If you are trying to buy or lease a car with a bad credit score, you will most likely be considering much larger payments as lenders tend to view borrowers with a lower credit score as a higher risk.
If your credit is in bad shape and you still need a new car, don’t worry. You still have options.
Try to save as much down payment as you can to minimize your loan amount. This way, you pay lower monthly payments and less interest fees. Or you could try buying a used car and paying for it in cash, which I recommend to people with good and bad credit.
The bottom line
If you want to get the upper hand when buying a new car, you need to be savvy. Think of this as a game where you, the dealership, and the salesman compete for the best possible price – and only one of you can win.
Remember, however friendly your salesperson may be, most likely he is a very skilled negotiator. While they might act like your friend, their main goal is to sell cars and make as much as possible, and who can blame them! Everyone has to earn a paycheck at the end of the day.
When it comes time to buy a new car, set your budget, follow the tips above, and you will be in good shape.
Plan ahead so that you can use the timing best for your situation. And don’t forget that automobiles don’t appreciate like your investment portfolio should.
Find the best deal on the car that suits your needs and budget here.