The best time to buy a car is when you need one. If your current vehicle is no longer reliable or has been totaled, you likely don't have the luxury of timing your purchase.
However, if you have some flexibility with buying your next car and want to get the best deal, some times of the year are better than others. But ultimately, it's important to feel financially ready. Here are some of the best times to buy a car if you want to maximize your savings.
End of the Month
Car dealerships typically set monthly quotas for their salespeople. So, if you do your car shopping during the last few days of the month, you may have a better chance of working with a salesperson who's motivated to offer a deal to meet their goal.
That said, if the dealer has already met their quota for the month, you'll have a harder time securing a good deal. Unfortunately, it can be difficult or even impossible to know that upfront. You'll need to feel your way through the negotiation process to get a sense of what's possible.
End of the Quarter or Year
In addition to monthly sales quotas, dealers may also set quarterly sales goals. This may give you an extra advantage at the end of March, June, September and December.
You may also have an easier time finding motivated salespeople at the end of the year, when monthly, quarterly and annual revenue goals converge. What's more, auto manufacturers and dealerships often offer special discounts around Christmas and New Year's Day, giving you more opportunities to save.
In fact, December has historically been the best month for discounts on new vehicles.
Note, however, that dealerships may be particularly busy during the end-of-year holiday season, and you may not get much leeway for consideration. In other words, you'll need to be fully prepared to either buy or walk away before you head to the dealership.
During Holidays
Dealerships regularly offer promotional discounts on holiday weekends, especially on their lineups of brand-new vehicles. You can usually find good deals around Memorial Day, the Fourth of July, Labor Day, Black Friday and New Year's.
Each holiday has its own advantages. With Memorial Day, for instance, dealerships are kicking off the summer selling season, while Labor Day may include deals to get rid of old inventory and make way for new models.
Holiday promotions are especially nice because you can compare discounts offered by multiple dealers in your area and use them to negotiate better prices.
When a New Model Comes Out
Due to limited lot space, new models coming in usually means last year's models have to go, and you may have an advantage in negotiations with a dealer who needs to move inventory quickly. If you've had your eye on a 2024 model, for instance, waiting until the 2025 model hits the lot can save you money.
Many car manufacturers release their latest models in the summer months or early fall, but there's no universal time of year to look forward to. You'll have to keep an eye on auto news or ask your local dealership to send you updates when new models will be ready.
Earlier in the Week
Dealerships tend to be busier on the weekend when people aren't working, but that may simply mean more competition.
Instead, consider buying on a slower day like Monday or Tuesday. You'll likely face less pressure to agree to a deal and you'll get more time to have your questions answered. You'll also have an easier time figuring out your financing since lenders are often closed over the weekend.
Frequently Asked Questions
Used cars typically don't get the same promotional financing or rebate deals as new cars, but it can still make sense to focus on the end of the month, quarter and year for your next used vehicle purchase.
Some dealers may even extend some of their holiday deals to their used inventory, so check your local dealer listings to see which offers are available.
While the right timing can help you save money on a car purchase, it's not the only thing to keep in mind. As you begin the car-buying process, here are some things to keep in mind:
- Define your budget early. Know how much you're willing to spend on a vehicle before you ever step foot on a dealership. Salespeople often try to frame the cost as a monthly payment, which they can manipulate with longer repayment terms. But if you're firm about your budget from the get-go and understand the terms of the sale, you can avoid overspending.
- Do your research. If you're in the market for a specific model, research prices at several dealerships in your area. Also, look up the value of the vehicle using Kelley Blue Book, JD Power or Edmunds. This information can give you more negotiating power with a salesperson.
- Save up for a down payment. You don't have to have a huge down payment for an auto loan, and some lenders even offer 100% financing. But the more money you put down on the purchase, the less you'll have to borrow. A larger down payment can also help you score a lower interest rate.
- Consider buying used. Brand-new cars are appealing for many reasons, but you'll generally save a lot of money buying used, even if the car in question is only a few years old. The value of a new car drops quickly once it's driven off the lot, and letting someone else take that hit can mean big savings for you.
- Read the contract. Vehicle purchase contracts are long and full of fine print, so it's important to know what you're getting yourself into before you sign. Specifically, look at the fees the dealer is charging and ensure there are no add-ons that you didn't agree to. Also, check for late fees and prepayment penalties if you choose to pay off the loan early.
With this and other tips for car buyers in mind, it's more likely you'll have a good car-buying experience.
Continue to Monitor Your Credit
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