Purchasing a car is often a satisfying (and even exhilarating) experience for most people. This is especially true when making a significant upgrade from your last vehicle.
It can be difficult, though, to know exactly when you should consider getting one.
So, when is the best time to buy a car? Let’s take a look at everything you need to know.
Editor’s note: If you like this article, feel free to join the conversation and leave your comments at the bottom!
Check out for more on personal finance tips.
Late In The Year/Month
Like many other businesses, there are sales quotas that car dealerships must meet. These are often broken down into quarterly goals and early goals, meaning the end of each time period is generally when you’ll see the best deals.
It’s not uncommon for a dealership to implement a price cut on most of their vehicles as the month comes to a close. While this may not always be thousands of dollars, you can still save a significant amount of money. This is especially true if you’re financing since paying a higher price for a car will result in more interest.
The end of the year (particularly the second half of December) is objectively the best time to go shopping for a new car. As dealerships scramble to meet sales quotas, you’ll find plenty of generous discounts that can make otherwise-unaffordable vehicles a reasonable purchase.
If you can’t wait until the end of the year to look for deals on your new car, major holidays typically mark a time when dealerships offer hefty discounts on popular vehicles.
Memorial Day is renowned for being one of the best times to purchase a car in terms of price reduction. It also has the added benefit of occurring during the summer, which is when prices tend to be at their highest.
While not every holiday is one that dealerships capitalize on, there may be some that vary depending on the region you live in. Those who live in a town that has a historically Irish background, for example, may find that local dealerships have notable St. Patrick’s Day sales each year.
If you’re able to wait until the end of the year, New Year’s Eve is often the single best day to purchase a new car. Since there are only hours left for dealerships to meet their sales goals, it’s not uncommon for them to slash prices and offer benefits they typically wouldn’t.
When Prices Drop
The automotive industry is subject to price fluctuation just like every other market. While cars are typically priced similarly between dealerships based on their make and model, there are certain occurrences that could reduce the amount you’ll pay on a new vehicle.
Recalls, for example, may cause a price drop for certain models. This is especially true if a particular car needs multiple parts replaced due to defects.
Due to recent global events, though, the auto industry has been forced to adapt by significantly lowering the prices of many vehicles. Despite being early in the year, facilities across the country are already seeing noteworthy drops in asking prices.
Not everyone is able to allocate money toward a new vehicle during these times. But, those who have this capability will likely find some of the best purchasing opportunities that recent years have shown.
Lower prices in combination with financing, though, can get most people a reliable vehicle that suits them.
After Next Year’s Model Is Released
If you have your eye on a contemporary make and model of a vehicle, it’s best to wait until next year’s version is released. Since dealerships have limited space for their vehicles, they often seek to sell off their older stock in order to make room for the newer models.
New models are generally more popular with buyers, and it makes more financial sense to stock more of a popular, sought-after product.
As you may expect, older models are often sold at significantly reduced prices. So, it’s best to stay updated on when the next year’s model is going to be released to the market so that you can save as much money as possible.
Even if the previous year’s model is still relatively popular among buyers, you’re still likely to see a price drop after the next model comes out.
When Your Current Car No Longer Serves Its Purpose
For most people, a car can continue to perform its necessary duties even a decade after it was purchased. There will come a time, though, where it’s not practical to keep the same vehicle anymore.
Frequent breakdowns, hardware damage, and generally poor performance are all reasons to begin your search for a new car. But, your car’s purpose doesn’t always have to be limited to functionality.
As people advance in their careers, they typically have a higher income to work with. This often leads them to upgrade their possessions, with a car being one of the primary ones they focus on.
If you’ve grown tired of the experience that your current vehicle provides, it’s most likely a good time to start shopping around for a new one.
Knowing When Is The Best Time to Buy a Car Can Seem Difficult
But it doesn’t have to be.
With the above information in mind to answer ‘when is the best time to buy a car?’, you’ll be well on your way toward making the decision that’s best for you.
Want to learn more about how we can help? Feel free to get in touch with us today to see what we can do.