The decision to buy a car is a major one; aside from a house, it’s the biggest single financial investment many of us will ever make.
Your decision isn’t only limited to what make and model of vehicle you’re going to go for either; you need to decide whether you’re buying new or used, how you’ll finance the purchase and what features are worth paying a little more for.
Also, as with much in life, timing is everything! Choosing the right time to buy can save you a lot of money.
So when are the best times to buy a car?
- End of the calendar year: Merry Christmas! If you’d like to reward yourself with a big gift to start the new year, you’re in luck. Car dealers are focused on clearing current year models and they will frequently offer add-ons and other incentives to make you buy.
- The New Year: If the builder’s plate on a brand new car has last year’s date, the dealer will be willing to trade aggressively, as last year’s plate denotes the car as that year’s model – even if it is driven for the very first time in the current year. This can be to your advantage when buying new – so be clever when you shop.
- June – or EOFYS: Yes, the end of financial year sales (EOFYS) can bring you big deals and big discounts on a new car. This is the biggest time for new car sales all year and automotive brands do rely on high levels of positive consumer activity – so they are willing to deal.
- New model years: When a new model is run out (every few years for most), older new car models will likely be on sale for less. If not, it is at least a leverage you have with the dealer.
Aside from these specific events, new car buyers can benefit from auto shopping on the last day of the month, the last month of the quarter, and even on the weekend.
Sales targets for dealers are set on a quarterly or monthly basis and most will be very keen to hit or exceed their targets and up their commission earned at the last minute.
When is the worst time to buy a car?
- On a whim: A car is not something you should purchase on impulse. It can be hard enough with pushy salespeople; think all aspects of the purchase through and do some research prior to hitting the car dealerships. And don’t be drawn in by bells and whistles – know what you want and shop smart, with the intention of doing some hard bargaining.
- When your funds or credit are low: When you have a significant deposit, your bargaining power escalates. You also need to be in a financially healthy position to get approved for finance – so make sure you really can afford your new car before you go shopping.
- Early in the sales cycle: Few incentives will be offered early in the new financial year or early in the sales quarter. Just wait.
Make your decision to buy a new car a measured one. Even if it means holding off for a few months, the savings could be very significant and well worth the wait.
For more auto tips and tricks, head to the Blue Toro Blog.
