The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.
Buying a brand-new car is a financial commitment over several years. Because the latest models cost tens of thousands of dollars, negotiating a fair price is the goal for consumers. Explore the best time to buy a new car and enjoy a great deal.
1. Timing Your Purchase Window
There are several times of the year when buying a new vehicle is optimal. First, consider the car dealer’s business model. Most dealers adhere to a traditional fiscal year. For example, they set revenue goals for every quarter or three months. Near quarter end, dealers are more flexible with their price negotiations. Essentially, they want to move products off the lot. As a result, buying a car near the end of March, June, September or December are clever times for great deals.
Second, try buying a car near the end of any month of the year or during holiday sales. Dealers will always have monthly sales goals, for example. Big holidays such as Memorial Day or Black Friday are also good times for price negotiations.
Lastly, carefully consider which day of the week to visit a dealer. Ideally, head to the dealership on a Monday or Tuesday. These days are the calmest times to purchase a car. Indeed, salespeople will have more time to discuss the vehicle’s options and possible financing. Additionally, lenders are available on the weekdays. Shopping on a weekend, for instance, is often challenging when it comes to securing a loan.
2. Preparing for the Car Purchase
Generally, there are certain brands with higher demand than others. In these cases, negotiating a discount is often impossible. Consumers are willing to pay the sticker price or even more. Ideally, research car brands and their popularity before heading to any dealership. Choosing a brand that’s not so popular can pay off with an attractive discount.
Currently, dealers are using market adjustments as a means to charge more for a car, reports Edmunds. For example, many dealers don’t stock base models. Alternatively, they stock the inventory with models complete with expensive accessories. Because these items are already installed, the car cannot be negotiated for less. As a solution, consumers might order a base model and wait for it to arrive. There may not be a big discount on a car ordered from the factory, but you won’t pay for unnecessary accessories, either.
In addition, be aware of extra costs associated with your purchase. These costs include taxes, license fees and even freight costs. Although most fees are standard, such as sales tax for your state, some costs might be negotiable. Ask about removing the freight cost, for instance. Unless you special ordered the vehicle, this charge might be negotiable.
3. Narrowing Down the Perfect Model
Choosing the right car for you is a subjective matter. Indeed, every person has a unique lifestyle that should match with the vehicle type. For example, people who enjoy camping or the outdoors might look for an SUV or truck that can take on rugged terrain.
In contrast, other consumers need a reliable car to commute to work or school. Their perfect car might be a compact sedan with great mileage. Next, consider who or what you’ll be driving around each day. Families need large vehicles for children, guests and hauling weekly groceries. Singles, for example, may want sporty cars for those exciting nights out.
Furthermore, consumers are also faced with fuel source options, such as gasoline, hybrid or electric vehicles. Soon, most cars will be either hybrid or entirely electric. Every car type has its advantages and disadvantages based on your driving needs. For example, charge your electric car so that it runs for hundreds of miles. That charging time, however, might require an hour or more of your time sitting at a specialized power station.
In contrast, hybrids give you the best of both worlds. They run on electric power, but there’s a gasoline component. Plus, the car charges the battery without any need to plug it in.
Understanding a car dealer’s business model is the best way to plan out your purchasing time. By visiting a dealer when they’re eager to sell, consumers can strike the best deal. In the end, every car has some wiggle room for price negotiation.