Traditionally, when you ask someone when they the best time to buy a car is, they’ll tell you December. It’s common that automakers will offer end-of-year deals and incentives to boost sales for the final quarter. But what is less known is that there are also incentives to purchasing a vehicle in August.
Historically, August has shown to have the lowest transaction price of the year (a 2.4% decrease versus the average). The end of summer is when dealers are trying to clear out their aging inventory to make room for new inventory. With such a large volume of vehicles passing through car lots and showrooms, dealers can offer a great flexibility in price in August.
Back-to-School Car Buying
For growing families, back-to-school time means carpool, soccer practice, and hauling kids around to after-school activities. As kids get older and bigger, it only makes sense to invest into a larger vehicle that will fit a growing family.
Other families may decide that back-to-school time is a good time of year to buy a safe, reliable car for the new driver in their family or to a child who just got their learner’s permit. Families may also decide that their new graduate needs a vehicle before heading off to college, so cars with good fuel efficiency, bluetooth capabilities, and navigation are in high demand.
Regardless of the situation, August is a peak time for families who are looking to buy cars. Automakers and dealerships can be motivated by the year end change to move their existing inventory.
Model Year End Car Buying
With the new year inventory starting in October, many dealerships clear out their older models to make room for their new year models. So in order to make room, they want to offer great deals to customers. Buying a car in August will allow you to take advantage of the specials that dealerships are running while there is still a good amount of current-year models available.
Families and buyers interested in SUVs are in luck if they purchase in August. On average, SUV prices are lower than any other month of the year. Customers who have been holding out for better pricing will see the best options and availability for savings during this time.
August offers historically high buyer incentives, great discounts, and larger prices drops than other months. Also keep in mind that purchasing a vehicle in the beginning of the month can result in a 1.3% decrease in price or an average of $390 in savings, compared to the rest of the month. If you find a dealership that is open on Sundays – go then! The largest decrease in average transaction price occurs on Sundays – averaging 4.6% or $1,402 in savings.
Happy Car Buying!