Best Time to Buy a Car

Timing is Key
to a Great Deal!

I'm frequently asked when is the best time to buy a car and usually my answer is...

Okay, that's just the salesman in me coming out, but in all honesty there are different times of year, of the month, of the day, etc. that can play a very important role in what type of deal you are able to negotiate.

Let's break this down into 4 sections to learn some general car buying tips, the best time to buy a new car, the best time to buy used car and how to buy smart.

1. General Car Buying Tips
2. Buying a New Car
3. Buying a Used Car
4. How to Buy Smart

In general the best time to buy a car will be the end of year, the end of the month or near the end of the day. I'll get into the specifics of each of these below.

The Opposite Approach

Now let's take that and completely spin that theory on its head. Many times you can also get a great deal at the very beginning of the year, the beginning of the month or bright and early first thing in the morning.

The second set of car buying tips holds true for new cars that are carried over into the next model year. For instance, a 2011 new car still on the dealers lot in January of 2012. Dealers hate to carry over new vehicles and will be even more motivated than they were at the end of last year to sell it.

Regarding the beginning of the month, well you have to get a little lucky here and hope that the dealer missed last months goals. Trust me, a sales manager that just came crawling out of the General Managers office, because he did not meet last months goals will want to get off to a fast start this month and may take just about any deal to get an sale on the board.

As for an early morning buy, many customers are to some degree able to catch the dealers off guard. You may catch the sales manager hung over (not kidding), having to cut short a sales meeting (distracted) or just eager to get the day off to a fast start.

Although these scenarios are not always the best time to buy a car, they certainly can be and shouldn't be overlooked based on the strategy you plan to have.

End of Day

Buying a new car or buying a used car near the close of business definitely has its advantages. At this point, in what is usually a long day in the car business, everyone is ready to go home. If they are going to get another sale on the books they want to do it quick and get out of there.

Sometimes you'll run into the superstar and they'll sit with you until the wee hours of the morning to not make a deal, but more often than not they figure if they've got to stay late they are going to sell something.

Down Economy

A down economy can certainly make an average time into the best time to buy a car real quick. Dealers sales numbers are way off and many are determined to make any kind of deal just to keep the wheels a turnin'.

If you are in a position to do so, definitely take advantage of a down economy as many dealers will have cars on their lots they are very eager to part with.

It may not be the best deal they could make, but it's a deal!

Now that we've covered some general car buying tips, let's get on to the specifics and breakdown the best time to buy a car whether you're buying a new car or buying a used car.

When you are buying a new car, there are definitely times that are much better than others to buy. If you are patient, then it's not a bad idea to to keep up on the manufacturers rebates and incentives throughout the year.

It's very simple to do and all manufacturers will have some sort of email list that you can sign up for where they should notify you every time the incentives change.

For most domestic new cars (not new "hot" models) rebates will vary from $1500 to $3000 throughout the year. Trucks will have anywhere from $2000 to $3500. Towards the end of the year though, you will notice those increase by $500 to $1000 or more.

In addition, dealers will also have incentives called dealer cash, trunk money, etc. This is money that the dealer can either give to the customer or keep for themselves.

The dealer cash/trunk money aren't numbers that are easily obtained by consumers and are not always available for dealers, but when it is there just know that this number goes up towards year end.

Best Time of Year to Buy a New Car

1. End of Year There are several keys times when buying a new car becomes more beneficial for a consumer and one of those times is the end of year.

   Not only do the manufacturers start to increase their rebates and incentives, but dealers get very eager to sell these vehicles as they don't want to carry a new car over into the next year.

   The best time to buy a new car usually starts in or around October, so keep a close eye on rebates and feel free to really grind the dealers for the best deal.

   Be careful to not miss the vehicle you want over a couple hundred bucks however, because they won't be making anymore just like it.
   
   

2. Beginning of the Year - If there is a carry over from the prior year, then this is truly the best time to buy a car that's new. Dealers will be extremely motivated to sell and the factory will really boost rebates and the dealer cash as mentioned above.

   The only problem with waiting until the new year to buy last years model is that the pickin's will be slim and you may not have much selection to choose from.
   
   

3. End of Month - The end of month can be a really good time to buy a car, because the sales manager may be trying to reach a goal set by the dealer (usually bonuses involved) and/or a goal set by the manufacturer (usually big bonuses involved).

   Often times the factory will set a bonus for the dealer and if the goal is reached the factory will pay the dealer a retroactive bonus of up to $1000 per car. Sometimes higher.

   If the goal is 100 cars for the month and the dealer stands to make $100,000 selling you your car, then they will definitely take a $2000 (or more) loser on your deal to make the big money in the end.

   If there is a bonus on the line, then this is definitely the best time to buy a car!

Employee Pricing

If you are waiting patiently to pounce on the best deal for buying a new car, then definitely keep your eyes open for any employee pricing that comes available from the factory. Keep in mind from the factory and from the dealer are two completely different things.

Employee pricing from the factory will usually mean pricing below invoice and employee pricing from a dealer will probably mean pricing at somewhere between $300 and $500 over invoice. BIG difference!

If you can combine employee pricing with big rebates or special financing offers, then you are going to be in pretty good shape and will have little to no haggling to boot.

Truck Month

Keep an eye for favorite manufacturers truck month if you are looking to buy a new truck. That I'm aware of, all manufacturers that make trucks have a truck month (it seems that are in early spring for the most part).

During truck month you can find great combos of rebates and special finance rates. As with the employee pricing be sure it's the factory event and not just your local dealer advertising.

The best time to buy a used car will be somewhat similar to buying a new car, but there are some key car buying tips that are unique to buying a used car that I think can save you a bundle.

Best Time of Year to Buy a Car

1. End of Year - The end of year is not nearly as big a motivation for a dealer to sell a used car as it is for selling a new car, but there is still plenty of incentive.

   See, when the new year rolls around the book value (either Kelley Blue Book or NADA) of a used car drops, because now the vehicle is officially a year older.

   This means that a dealer could have owned the car for the wholesale value last year, but now that the book value has dropped they now own it for $500 over the book value...Not good for the dealer!
   
   

2. Beginning of the Year - The beginning of the year really does not have much impact on buying a used car and the only thing that happens is that the value of the vehicle goes down and the dealer doesn't own it as well.
   
   

3. End of Month - Minus the factory incentive (there may be incentives for certified pre-owned vehicles), the same benefit of the sales manager reaching an internal goal for a bonus would apply.
   
   

4. End of Day - Buying a used car at the close of business has the exact same benefits as mentioned for buying a new car, so I won't expand on this here.

Now let's move on to the best time to buy a car that's used. These are unique in that they are times that are typically not thought of.

Collecting Dust

If you've driven by the same lot day after day and have noticed the same used car sitting on the lot for some time, then this is a good time to make an aggressive offer.

Many of the well run dealerships have what they call a 90 day turn policy. What this means is that they don't want any used car sitting on their lot for more than 90 days.

What happens after 90 days? The dealer will usually wholesale it or send it to the auction. There is usually nothing wrong with the vehicle, but it just hasn't sold.

The dealer would much rather make a small deal to sell the car retail than to lose money selling to an auction or possibly breaking even selling it to a wholesaler.

So, keep an eye on the lot and see which used cars are starting to collect dust as this is definitely one of the best times to buy a car that's used.

Merry Christmas

Buying a used car around Christmas time (usually the month or so leading up to it) is the best time to buy a car if you are looking to buy from a private party seller.

People selling around this time may be trying to raise some money to fund their Christmas shopping sprees and might take less than normal if their car hasn't gotten too many looks.

An aggressive offer here might get you a steal of a deal. In addition, some states don't charge sales tax for private party sales.

Gas Prices

Gas prices have a huge impact on the value of cars, trucks and SUV's.

When gas prices are high it is definitely not the best time to buy a car, but would be a great time to buy a gas guzzling truck or SUV.

In fact, I did just this when I purchased my Expedition. Gas prices were near $4.00 a gallon for the first time and the truck and SUV market tanked. I bought my Expedition for $7,000 below wholesale! Now the truck and SUV market have come back and I'm in really good shape.when

Of course, when I say it is not the best time to buy a car I'm referring to the sales prices which go up for economical cars when gas prices are high. Buying a truck or SUV here is assuming that you can afford the gas and don't use this vehicle as a daily commuter.

It is definitely the best time to buy a car when gas prices are low as trucks and SUV's soar in value when gas goes down and economical cars are not nearly in as high demand.

Look it's Snowing

If you live in an area that has seasons, then it is good to know that when the weather gets a bit rough, i.e. sleet, rain, snow, etc., that 4x4's and AWD vehicles go way up in value. Try to buy one of these vehicles during the sunny months as you'll stand a better chance of getting a better deal.

In addition, if you are trading in a 2 wheel drive vehicle during the bad weather months, expect to take a much bigger hit on its value.

This is because the dealer is going to have a hard time selling it and will need to buy it cheap in order to either sell it really cheap and/or to wholesale it.

Now that you know the best time to buy a car, let's look at another car buying tip that can help you get a much better deal no matter what time of year, month or day.

Competition

The car buying tips mentioned above regarding the best time to buy a car should help you to save a bundle and to have even larger savings, you should couple those tips with a little competition. These two combined will truly MAXimize your savings.

When you pit dealers directly against each other you can watch the prices get slashed and you can do this from the comfort of your home.

You can have four negotiations going on at once and you won't even need to pick up the phone or waste time driving from dealer to dealer. On top of that, if you don't like one dealers approach, you can turn them off in an instant and never speak to them again.

See for yourself that there is no time like the present and now is the best time to buy a car and use Yahoo! Autos to get up to four competing quotes from local dealers by filling out one simple and fast quote form.

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