Best Time to Buy a New or Used Car

While research can identify and pretty much pinpoint the best time to buy a car, there are a number of factors that you should consider before you head to the dealership.

1. The main thing you have to determine is if you are financially in a good position to purchase a car either with cash or borrowing. If you’re not, then all the research in the world won’t make a bit of difference, because you may not be able to secure a good auto loan. And, even if you do, the interest rate will be higher and the interest will cost you more in the long run.
2. The second thing to consider, if you’re in a good financial position, is whether or not you will be trading your current automobile in. If you are, then you need to determine if the value of your car is worth more than you owe on it. You certainly don’t want to lose money off the deal, so you’re better off paying down your auto loan until you are in a positive trade-in or sell position – which means now the car is worth more than you owe.

Once you’ve determined that you’re in good financial shape and you evaluate your trade-in options, there is plenty of research that can help you narrow your car buying deals by time of year and month, day of the week and even the time of day. That’s right, so serious car buyers can utilize this research to help them save some money on their new dream car. According to Edmunds, there are definitely better windows for bargaining including the following recommendations:

Best Days of the Week and Time of Day to Shop for a New Car
According to Edmunds.com, the day and the time of day will impact your savings, because early morning on weekdays will allow you more time to bargain with car dealers because they aren’t as busy on weekdays as they are on the weekend. Research shows you could save an average of three to six percent if you purchase your car on early mornings on weekdays.

Best Time of the Month and Year for New Car Shopping
As far as the time of month, since car dealers have sales quotas they need to meet each month, the end of the month may be a better time to shop because the salesperson may be willing to cut you a deal if they need it to make their quota. Additionally, dealerships may be more aggressive with deals at the end of the month because they also want to meet their sales goals.

Keep in mind, though, the salesperson and the even dealership may not be so willing to cut you a deal, if they have already met their goals for the month. So, that leads us to ask “​What month and time of year would you have a better time finding deals on cars?​ ” Most experts agree that the end of the year is when you’ll typically find the very best deals for a number of reasons including:

• End of the month and year dealership and sales goals may still have to be met.
• Most of the new car models are arriving, so dealers want to clear out the old inventory.

Finally, Edmunds maintains that research shows on average, December is the best month for discounts on new cars, followed closely by November (6.1% and 6.0% respectively), but October’s not too far behind with 5.9% off the MSRP.

Best Time of the Month and Year for Used Car Shopping
But, what if you’re buying a used car or trading in a used car to purchase your new car? Then the timing shifts a bit. People tend to purchase used cars more at the beginning of the year, and near big holidays according to ​The Balance​ , so dealers may be willing to pay more for trade-ins to meet the increasing demand for used cars.

And, used ​vehicle demand tends to increase in the spring because people start receiving their tax refunds, so dealers start to see a shortage of affordable inventory. That makes it more likely that they will give you more for your trade-in, but that also means they will charge more for used cars. The value you will get for your used vehicle will also depend on a number of factors including popularity, age and condition of the vehicle, as well as the number of miles. But, as a reminder, you should never trade-in your vehicle if you owe more than you will get for the value of your vehicle.

However, if you are in a good position, or if you just need to purchase a vehicle out of necessity, then you’ll need to do your homework to shop around for a good car loan, and then a good car deal. It might seem like more work, but in the end it will save you money and peace of mind, especially if you get pre-approved for your auto loan before you head to the dealership.

To Sum It Up
The Balance​ recommends shopping around for your auto loan to get the best rate for your loan, and get a pre-approval so you don’t have to hassle with financing while you’re negotiating for the best deal on your new vehicle. They also recommend finding out what your current automobile is worth before you go car shopping, so you can sell your vehicle separately if the dealership doesn’t offer enough for your trade-in. And, it’s always best to research the car’s value to determine if there is a big difference between trading it in, or selling it privately. The bottom-line is there are plenty of free online resources to help you determine your best options to get the best deal, so make sure you use them.