Timing is everything, especially when you’re in the market for a new car. Understanding when new car models come out can significantly impact your wallet. Dealerships operate on cycles, and knowing these cycles can give you a distinct advantage, whether you’re aiming for the latest model or a bargain on the current year’s vehicle. This guide breaks down the optimal times to buy a new car, ensuring you drive away with the best possible deal.
Best Times to Buy a New Car
Several periods throughout the year present golden opportunities for car buyers. These times often coincide with dealership strategies to clear inventory or meet sales targets.
End of the Model Year
Generally, late summer and early fall mark the arrival of new model year vehicles. To make room for these fresh arrivals, dealerships are keen to sell off the current year’s inventory. This creates a prime buying window if you’re content with a car from the outgoing model year. Manufacturers and dealers offer substantial incentives and discounts to move these vehicles quickly. However, it’s crucial to act promptly. As fall progresses, the selection of current year models dwindles, potentially limiting your choices in terms of features and colors. Shopping early in this period maximizes your chances of finding the perfect car at a reduced price.
End of the Month or Quarter
Sales quotas are a driving force in the automotive industry. Both dealerships and individual salespeople often have monthly and quarterly targets to meet. As these deadlines approach, the pressure to close deals intensifies. This pressure translates to a greater willingness to negotiate and offer better prices at the end of the month or quarter. Sales teams are highly motivated to reach their benchmarks, as doing so unlocks bonuses and incentives. Savvy buyers can leverage this urgency to secure more favorable terms and potentially significant savings.
Fall Season
Beyond just the model year changeover, the fall season itself often brings a dip in car buying demand. As people begin to focus on holiday spending and other seasonal expenses, purchasing a new car might take a backseat. This decrease in buyer traffic gives you more leverage at the dealership. With fewer customers actively in the market, dealerships become more eager to attract buyers and are more likely to offer discounts and incentives to stimulate sales. Fall presents a less competitive buying environment, increasing your chances of negotiating a better deal.
Black Friday
Capitalizing on the Black Friday shopping frenzy isn’t limited to electronics and apparel. Car dealerships also participate in this major retail event. Recognizing that consumers are in a spending mindset during Black Friday weekend, many dealerships roll out special promotions and discounts. These Black Friday deals can be particularly attractive when combined with existing year-end savings on current model year vehicles or other manufacturer rebates. If you’re prepared to brave the Black Friday crowds, you might find exceptional deals that significantly lower the overall cost of your new car.
Worst Times to Buy a New Car
Conversely, some times of the year are less advantageous for car buyers, often due to high demand or limited dealership motivation to offer discounts.
Spring Season
Spring typically sees a surge in car buying activity. Warmer weather and the arrival of tax refunds often motivate people to purchase new vehicles. This increased demand tilts the negotiating power in favor of dealerships. With more buyers in the market, dealerships are less inclined to offer substantial price reductions or incentives. Furthermore, spring falls well before the arrival of new models, meaning there’s less pressure to clear out current inventory, further reducing your chances of getting a deal.
Beginning of a New Model Year
If your heart is set on owning the very latest model, be prepared to pay a premium. When new models first hit the dealerships, demand is typically high. Enthusiasts and early adopters are eager to get their hands on the newest features and designs. This high demand eliminates the dealership’s need to offer discounts or incentives. In fact, you’re more likely to pay closer to the manufacturer’s suggested retail price (MSRP) or even above it for highly sought-after new models during their initial release period.
After Recent Credit Inquiries
While not directly related to the time of year, your credit activity can significantly impact your car buying experience. If you’ve recently applied for multiple loans or credit cards, your credit score might temporarily dip due to the inquiries. A lower credit score can result in less favorable loan terms, including higher interest rates. Since financing is a crucial part of most car purchases, it’s wise to avoid making multiple credit applications shortly before buying a car. Allowing your credit score to rebound for a month or two can improve your chances of securing better loan rates and reducing your overall cost.
To streamline the car buying process, it’s always beneficial to get pre-approved for a car loan and conduct thorough online research. Comparing different models and exploring available incentives beforehand equips you with valuable knowledge and strengthens your negotiating position when you visit the dealership.
