Buying a car may be one of the most expensive items you purchase in your life, next to a house, so when is the best time to get a good deal on a new car loan?
When you're shopping for a new car, the goal for everyone is always to get the best deal available, and in order to do this you need to know when is the best time to buy a car. A good rule of thumb to follow is to start your car shopping in the last two weeks of December. All car salespeople work on commission, which means they get either a flat rate per vehicle they sell, or a percentage of the vehicle's sale price. In order to hit or exceed these goals laid out for them, they will mark down the price of new cars by hundreds and even sometimes thousands of dollars.
If you cannot wait until the end of the year, that's okay. There are other times that will allow you to get a large discount like:
- End of the Month
- End of the Quarter
- President's Day Sales
- Labor Day Sales
- Fourth of July Sales
These all prove to be a good time to buy for the same reason as the year-end sales. The dealers have a quota they need to meet in order to get their bonuses and incentives and they will mark down their cars to do that. Salesmen don't wait until the last minute to sell their cars, they work hard all year round, but it's common for them to try extra hard at these times to squeeze out a few more sales.
Visiting the Dealership
Salespeople are just as ready to head home after a long day at the office as the rest of us are, but the smart salesperson will stay late if
they see a potential sale in the making. At the end of the day, what's an extra 30 minutes for an extra hundred dollars or so in your pocket? Visiting a dealership around closing time is a tactic many buyers can benefit from. The salesperson is ready to go home, and is more likely to accept your negotiation prices to do so. Unfortunately, if you are also tired, your plan could blow up in your face because you are more likely to accept the first deal they offer you due to the lack of strength needed to negotiate.
Buy Only What You Want
Many times buyers will be talked into getting extra add-on features which will raise the price of the car which totally defeats the purpose of buying at the end of the year to get a large discount. Before you visit the dealership, (at closing time, don't forget), be sure to research which type of vehicle you want to purchase, as well as all the bells and whistles you can opt for. From this list you can pick and choose which ones you want and don't want and which ones are necessities.
If the dealership happens to not have the car with the add-on features that you want then ask if there is a way to get one there, or if there is a similar car. If they really want to make the sale, they will find you something that works for your budget and what you want. Don't settle for add-on features that are too expensive, or a car that you don't like. This is when you take the chance of missing payments and eventually defaulting on the loan, causing your credit score to dissipate.
Negotiate, Negotiate, Negotiate
We cannot stress this point enough. Yes, it's true that the dealership is giving you a large discount on the vehicle because they need to meet their quotas and they want to get all of the 2013 models out the door, but that doesn't mean they have arrived at the lowest price they will accept. No salesperson will ever offer you their minimum price right off the bat. You have all the cards in your favor in this transaction, so take the lead.
Remember, they want to sell you the car just as badly, if not more, than you want to buy it. Find out how much they paid for the car, and use that as your starting price for negotiation. Dealerships will not go below this price because they have to make somewhat of a profit even if they are in a time crunch, so start at this price and move up until you come to an agreement. Before you start negotiating you should have a maximum price set in your head, and never go over that. If they won't come down on the price enough to work with you, then walk away because you will find a dealership that will. It's their loss, not yours.
As We See It
You want to make your friends and family jealous with your brand new ride and your smart shopping experience? You can do just that when you follow these tips. If you simply can't wait another 6 weeks to get a new car, start looking at the end of this month. You can still snag a good deal on the car you want and feel good about your purchase.
To help you with your negotiating process, start by applying online now with Auto Credit Express to see how much you can get approved for. This will force the dealer to reconsider their offer to try and compete with your pre-approval and you could end up with huge savings. Start the New Year off right with a new ride, and a new found confidence.