Categories: Tips & Insights For Car Buying
Are Holidays the Best Time to Buy a Car?
Buying a car is one of the greatest investments you can make in any given year, whether you want to get a new ride or it's just a fun gift to yourself.
Buying a car is one of the greatest investments you can make in any given year, whether you want to get a new ride or it's just a fun gift to yourself. However, with the average price tag of a new car going up to the $48,000 mark, a vehicle purchase requires great consideration and research.
Of course, cost, make, model, and paint color matter, but there are other things you should consider before you visit a dealership. Timing, for instance, matters when buying a new vehicle and can make a huge difference for maximum savings.
With that said, are holidays the best time to buy a car? The short answer is yes. Holidays, including major holidays like Christmas, Memorial Day, and New Year's Eve, are some of the best times to buy a car. These days can provide an opportunity to save money since most dealers offer sales deals associated with every holiday.
Why December holiday is the best time to buy a car?
There are many different holidays throughout the year that are ideal for buying a car, but December is the prime moment. Dealerships are usually emptier during the December holiday due to people traveling. What’s more, the sales team has impending quotas to meet before the year ends, and the best way to achieve this is to offer unbeatable deals.
Like any other huge purchase, it's essential to do your research and even take a few test drives before buying a car. This will give you enough time to decide the make, model, and trim options you want in your dream car. Here are a few reasons why December is the best time to buy a vehicle.
Better leverage and negotiating
Cars tend to be in low demand during the winter months. Therefore, in order to meet their quotas, the sales team will be desperate to get vehicles out of the lot and on the road. That means the buyer will have more advantage to get a great deal on their desired car.
Take advantage of an empty dealership to ask as many questions as possible and get in-depth about the car's features, safety ratings, and amenities. You should also be bold when negotiating when it comes to price.
Higher chances of getting your preferred color and model
As stated, dealerships focus on clearing their stock before the year ends. Therefore, you have a higher chance of getting a vehicle of your choice color, model, and variant than in January or mid-year. If you can't get a car of your choice with one dealer, you can always check the same with another dealership since stocks are usually limited during the offer period.
You are more aware of your budget
Another great benefit of buying a car closer to the end of the year is that you are likely better aware of your budget. You can better decide how much you can spend on buying a car. Furthermore, you can choose a suitable car model and variant based on your budget.
Knowing how much money you can spend buying a vehicle can also help you assess your loan eligibility and requirements. You can choose a lender that offers you an auto loan at the lowest interest rate, minimum or zero interest processing fees, and margin requirement that fits your financial situation.
Attractive discounts and holiday bonuses
Since they want to achieve the year's sales target, dealerships usually offer attractive bonuses and discounts such as extended warranties and free accessories. Most dealers will also agree to offer you favorable terms to get the deal done and the car off their lot before New Year's Day. Look for unusual, generous offers during December and find what works best for you.
Other best holidays to buy a car
Year-end holiday sales could help you save some cash on a vehicle purchase, but December is not the only time to snag a great deal. Here are a few other public and stock market holidays ideal for buying a car.
New Year's Eve
New Year's Eve is also the best time to buy a new or used car. This day is usually packed with unique end-of-year sales backed by great financing and dealership car leasing deals.
Since it is the end of the month and the end of the year, there are a lot of sales goals the dealers and manufacturers are trying to hit. That is why 30th December is another great time to visit dealerships.
Memorial Day Weekend
Memorial Day Weekend is one of the many holidays the auto industry celebrates with sales and special deals. Like other businesses, auto dealers and manufacturers offer Memorial Day promotions to increase sales throughout the long weekend.
While knowing the difference between a marketing ploy and a genuine sale can be difficult, there are often some exciting offers to consider when buying a car during Memorial Day. These day promotions usually come in the form of special interest rates depending on the buyer taking out a loan with the automaker's financing institution.
Presidents Day Weekend is usually a prime time to buy a car, though you shouldn't expect the biggest savings. February is also the month with the smallest discounts off MSRP, meaning it might not be the best month to buy a car.
Black Friday is considered the biggest retail shopping day in the United States. People have been known to camp outside shops and stores for hours for deals on big-screen TVs and other electronics.
The same shopping zeal has been happening on car lots after Thanksgiving. In recent years, car manufacturers and auto dealers have been offering more discounts, incentives, and “doorbusters” to capture the retail excitement. Black Friday also flags the end-the-year model, meaning you will likely see better discounts on outgoing models.
To shop on Black Friday, you will have to do some pre-Thanksgiving planning. These include calculating the value of your trade-in car, getting preapproved for a car loan from your bank or credit union, and taking a few test drives. You should also ensure you go through the fine print on any Black Friday deal ads that look too good to be real.
Fourth of July
The Fourth of July isn't just a time for barbecues and fireworks. It's also a great time to buy a new car. Being a major holiday and mid-year, the Fourth of July gives dealerships a great opportunity to boost mid-year sales. They do so by offering attractive discounts and incentives.
Most dealers also offer favorable financial terms during the Fourth of July sales events. These include lower interest rates, zero-interest financing options, and extended loan terms. With all these financial incentives, buying a car becomes significantly more affordable.
If you are looking to buy your dream car, the best time to do so might be at the end of the model year. This is because the previous year's models usually become discounted as new models arrive. The dealerships' showrooms might also be less crowded at the end of the year, meaning you could have more time to negotiate a better deal with the salespeople.
However, no matter when you decide to buy a car, it's essential to research and evaluate whether or not a deal aligns with your current needs. Finding the prime moment to buy your next car depends on your financial situation, personal budget, and vehicle preferences.