Why December is the Best Time to Buy A Car

There are arguably a few different times throughout the year that are ideal for buying a car. But December is the best time to buy a car.

It’s enough that dealerships are generally emptier during the holidays due to people traveling, but sales teams have looming quotas to meet before the year’s end. To put it simply, they want cars out the door. And the best way to do this is to run unbeatable deals.

In fact, consumers can expect to get almost 8% off MSRP values when buying a car in December as opposed to waiting until January.

Like any big purchase, it’s important to do your research before you buy a car, so do your research (and maybe even test drive a few) during the fall. This will give you plenty of time to decide what make, model, and trim options you want in your dream vehicle. But when it comes to making a purchase? Pull the trigger between Black Friday and New Year’s Eve.

Here are just a few reasons why December is the best time to purchase a car:

Better Leverage (& Negotiating)

Dealerships tend to be slower during the winter months, so in order for the sales team to meet their quotas, they will be desperate to get cars out the door and on the road. This means you, the buyer, will have better leverage to get a great deal on the vehicle you desire. Take advantage of an empty dealership to ask lots of questions and get in-depth about the car’s features, amenities, safety ratings, and when it comes down to price, don’t be afraid to haggle.

Making Space for Newer Models

October, November, and December see a lot of new makes and models come onto the scene in preparation for the new year. But this means the old inventory has to find a new home so there’s room on the lot. Meaning… prices will drop. If you are shopping for a car, instead of buying a 2019 model, look at 2018 models instead. The prices will be significantly lower because they aren’t the newest model on the market anymore. But December is when the prices hit the lowest – the longer a car sits on the lot unsold, the lower the price drops.

Peace of Mind

You may not think about this when you are purchasing a vehicle right away, but have a safe and reliable vehicle can bring you a lot of comfort during the winter months when road conditions are treacherous. Having a vehicle with new tires, top-notch breaking capabilities, and updated technology can give you more confidence when you are driving on slick and snowy roads.

Holiday Bonuses

Everyone loves a little extra cash for a holiday bonus. Why not out it to use and put it towards a down payment on a vehicle.  If you can put down a higher percentage, you will be able to get a better interest rate, or better yet, if you can pay with cash, there’s a huge chance you can talk down the price even further!

If you’ve been dreaming of a new car, now is the time.  This is the best time to buy a car, so put your haggling skills to use and be prepared to get the best prices on the market!

Why August is the Best Time for Car Buying

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.  

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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.  

SUV Deals

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.

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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!