Buying a brand new vehicle is a big decision. Be it for practical reasons, or just to fulfill a dream, a vehicle is a massive investment and you should take as much time as possible to plan out your finances before making a purchase.
Even then, you also need to consider things like vehicle model, its specifications, performance, and whatnot. Once all that is settled, you will eventually have to decide when is the best time to make the purchase.
Is there a “best time” to buy a new car?
While buying a new car is a huge financial investment, the timing of the purchase is just as important. This may come as a surprise to some, especially those who are less “vehicle inclined”, but there are certain months of the year where you can score better prices at dealerships.
At year end
Let’s go straight to the big one. Year end, or close to year end is one of the best times to buy a new car or motorbike, if you have been eyeing one. Why? Because car dealerships tend to work towards achieving certain year-end sales targets.
As the year comes to an end, some dealerships will be trying to make a final push to close more deals, ensuring that their books look good come the following year. Those who have yet to achieve their sales goals might be desperate to sell as much product as possible. This causes many dealerships to offer special promotions to achieve those targets.
The result is that dealers will often be highly incentivised to offer potential buyers deep discounts that you might not see otherwise during the early and mid year. Alternatively, they could offer you massive benefits along with your new vehicle purchase, or both.
Similar to month-end targets, dealerships also work towards year-end targets. If anything, the lucrative year-end bonuses are incentive enough for sellers to give even deeper discounts to attract buyers.
The festive season
Discounts on cars and such are not just being driven on the sellers’ side. The festive season gives people the chance to show off their brand new car to friends and family. As such, it also gives dealers the excuse to offer massive promotions to attract customers who are already eager to buy.
Festival sales are tailored to draw in the crowd, so it is definitely worth checking out if you are looking to buy a new vehicle. Generally speaking, the year-end sales are better than festive sales, but if there is a reason you need a vehicle sooner, these times are a good choice.
End of the month
While not as ideal as the end of the year or the festive season, purchasing a vehicle towards the end of a month can be a decent choice. Just like year-end sales targets, certain dealerships may have monthly targets to hit as well.
As with year-end sales, the same principle applies here. Sales reps want to hit their monthly targets and score some points in their performance. This means they are more open to haggling or throwing in extra benefits for the buyer in the hopes of sealing the deal. A tactic that you can use to buy yourself some time to think is to test drive a car you’re interested in earlier in the month, then close the deal at the end of the month.
End of a car’s design/life cycle
Did you ever notice that the same old car gets re-released every few years? This is because car manufacturers make iterations and improvements to their popular models to ensure that they stay competitive. This cycle can work to the consumers’ advantage.
More often than not, vehicle manufacturers will announce a redesign of model months in advance to get people excited. This will cause car dealers to begin lowering prices on the old and outdated models to get rid of stock. After all, they want to display the newest and greatest offerings. If you don’t care about being a trendsetter, you can likely nab a great deal on the older models before they go out of stock. Just beware, maintenance for these cars might be trickier and expensive, as many shops may not have the appropriate parts stocked anymore.
In more extreme cases, a vehicle model may be discontinued entirely. Under such circumstances, you could nab even greater prices and discounts. However, the maintenance issues and cost will likely be as steep as the discounts you got for the car.
Remember to plan ahead
Everyone will have different circumstances which dictate when they will be able to buy a new car. In general, The best time to get a car is when you know you definitely need a new car. For example, you know your current car is on its last legs and it is a matter of time before it turns off for good.
Depending on how urgent the need for a new car is, you can then plan whether or not you need a new one immediately, or whether you can hold off for a while so you can score a better deal.
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