The five best times to buy a new car
That chill in the air signals not only the onset of autumn, but also cooling auto sales. For bargain hunters, this could be a great time to get a good deal on a new car.
But sales downturns aren’t the only time to buy a new car. New model rollouts, carmakers’ redesign schedules, and other events can uncover bargains for those who know how to read the tea leaves of the auto market.
Meanwhile, figures from car shopping site TrueCar show the average transaction prices for 2015 and 2016 dropping across the summer and into fall while sale incentives remain high — which is a good combination for buyers.
Cavano warns that buyers shopping for newly redesigned or recently introduced models will pay dearly for wanting to be the “first on the block to own that car.” Manufacturers “trickle out” a few vehicles for each dealer to drive up interest. Eager buyers will have to pay sticker price and sometimes a bit more.
2. End-of-month pressure
Of all the days of the month, traditionally the last five are when dealers have the greatest incentive to sell.
That’s because some carmakers offer bonuses when dealers hit certain sales numbers, said Christian Wardlaw, an analyst for the New York Daily News’ autos section. “Dealers know they can take a loss on that vehicle because they know they’ll get the bonus for hitting their quotas,” Wardlaw said.
These kinds of bargains are more common at high-volume domestic dealers. However, it’s hard for the average consumer to know which dealers are facing the pressure to hit quotas, Szakaly pointed out. Shopping at the end of the month can help you improve your odds. “You’re hoping you are the lucky person who walks in at the end of the month and the dealer is missing the one sale he needs,” he said.
3. Year-end sales
The final week of the year brings with it some great deals, particularly from luxury carmakers such as Lexus, Mercedes and BMW, Cavano said. It’s when “manufacturers are trying to eke out those last few sales…and they will push money out to their dealers and say, ‘OK guys, let’s get this done.’”
Keep in mind, however, that with dwindling inventories, you might not be able to get your first choice of color and options.
4. Model redesign
When manufacturers redesign models, dealers have both the outgoing and new models for sale at the same time. That leads them to offer incentives and discounts to get rid of older models.
Of course, the resale value of the vehicle would be lower. And sometimes, the new model may be “heads and tails better than the outgoing model,” Wardlaw said.
5. Last year of a model’s production
This tip is for serious penny pinchers. When a car is being discontinued or “rebranded” as a different model, the outgoing model’s prices drop even more dramatically. Examples on the market include the 2016 Dodge Dart and Chrysler 200, according to Edmunds’ handy list of best leftover cars for 2016. Current pricing for the Chrysler 200 shows a savings of nearly $5,000 off the sticker price, according to TrueCar’s pricing.
Times when you shouldn’t buy a car follows a simple pattern, according to these experts. When there is plenty of foot traffic on the car lot, the dealer will keep prices higher, believing there will be a better offer from another shopper.
So weekend afternoons aren’t optimal because besides higher pricing, the sales staff will be busy, and test-drives will be rushed. Instead, shop mid-week, communicating with dealers via text or emails.
— NerdWallet, via AP
