There are certain dates and times when you may be able to strike a better deal on a car, and these times may be considered the "right time to buy" when you need your next vehicle. However, there are many situations where the time isn't right, but you need a car anyway. Since car buying may not be something you were planning for, it's a good idea to know where to look for savings and when.
Additionally, as times change and the auto industry shifts from gas to EV vehicles, some things are better to take into account, such as deals and incentives for buying certain models. There is also a question of whether now is a good time to buy before tariffs impact auto prices further.
Here's a look at whether there's a right time to buy, and how to figure out when the time is right for you.
The Right Time to Buy a Vehicle
The right time to buy a car may be whenever you need one, but there are times when you can strike a better deal than others. Right now, in particular, it may be a good time to buy before tariffs begin to really impact the cost of newly built vehicles. With a 25% tariff being assessed on every vehicle and part that is built or manufactured in a foreign country, the prices of vehicles are on the rise.
Many automakers are raising prices to help combat the rising manufacturing costs, while others seem to be holding off until the uncertainty settles. If you want to buy a vehicle before those tariffs take hold, it's a good idea to shop around and find the best deal you can. Rate shopping is when you apply for several auto loans with multiple lenders and compare rates, terms, and loan details. In order for rate shopping to be effective and not have a large impact on your credit score, you need to keep your inquiries to between 14 and 45 days.
When you’re talking about the best time of year to buy a vehicle, you’re definitely going to want to target times when most cars see their biggest price cuts. Two great examples are mid-summer and the end of the year.
The week between Christmas and New Year's Day has long been heralded as the week for some of the lowest new vehicle prices. The other time during the year that seems to offer good deals and discounts is between late August and early September. This is the time that dealerships are clearing out old inventory on their lots to make room for the new model year cars, which traditionally begin to arrive in September.
However, throughout the year, most holidays can also be a good time to save money on new or used vehicles. There are usually a number of sales you can choose from during many of them, such as:
- Presidents Day – Presidents Day falls on the third Monday in February, so this is a great time to save at the beginning of the year. It also coincides with when many early filers receive their tax refunds, giving car buyers even more reason to shop. Many automakers run specials for Presidents Day.
- Memorial Day – Observed the last Monday in May in America, this is often another time when dealers run sales. Around this time of year, you're also more likely to find military appreciation and servicemember discounts.
- Fourth of July – The Independence Day holiday in the U.S., which falls on July 4 each year, is a big time for sales, including car sales. Many manufacturers run specials around the beginning of July to capture the crowds looking for a deal on a new car.
- Labor Day – The first Monday in September marks Labor Day in the U.S., and this is also a great time for end-of-summer sales. This is typically when new model year vehicles arrive, and sales begin on the remaining stock of current model year vehicles.
- Black Friday – The Friday after Thanksgiving is highly regarded as the biggest shopping day of the year in the U.S., with sales on nearly everything. Black Friday sales have been expanding lately, and often start early for automakers. This typically translates to saving for car buyers all throughout November.
Tax time, typically between February and May, is also a good time to shop; some dealers run specials aimed at consumers who may have just gotten a large tax return.
Get a Good Deal Any Time of Year
If you don’t have the time to wait for a sale and need a car now, you can keep these timing tips in mind to take advantage of better deals that may be possible.
- The end of the month – Month-end is typically when dealers need to meet sales targets, so it stands to reason that a better deal may be had later in the month.
- The end of the day – Late in the day tends to be a good time to get a good price, especially if a salesperson is looking to put a check in the sold column. As the clock heads toward closing time, sales staff may be willing to cut you a better deal.
- Beginning of the week – If you’re looking for personal attention from members of the sales team, you should avoid heading to a dealership on busy days. As the week winds down, many people plan to shop on their weekends. For a better chance of more face-to-face dealer contact, try shopping on a Monday or Tuesday.
Get a Car Loan after Credit Improvement
Perhaps one of the best times to buy a vehicle for anyone is after their credit score has improved. This is especially true if you're a bad credit borrower and have been working hard to improve your score. Remember that the line between good credit and bad credit sits around 670 points on the FICO credit scoring scale.
If you’ve been trying to raise your credit score, an auto loan is a great time to see all your hard work pay off. Not only is it easier to qualify for a car loan with better credit, but you’re also more likely to qualify for better rates and terms on that loan.
The easiest way to build credit is by paying all your bills on time. Your payment history makes up the biggest part of your FICO credit score, 35%, so making all your payments on time is the best way to improve your credit. This is closely followed by keeping your credit utilization low. If you owe too much money to creditors compared to your credit limits, you're likely to have a more difficult time improving your score. Amounts owed make up 30% of your credit score.
If you want to take advantage of the deals you could get with better credit, make sure to regularly monitor your credit reports and score, so you know which areas you can improve on. You can get your free credit report once a week from www.annualcreditreport.com.
Get the Deal You Need with Bad Credit
No matter when you need to shop for a car, it can be more difficult if you have less than perfect credit. If you’re a bad credit borrower, you may not always qualify for the same deals as people with good credit. This doesn’t mean you’re out of options when it comes to finding an auto loan, though.
Here at Auto Credit Express, we can help get you on the path to the vehicle you’re looking for. Simply fill out our easy and fast car loan request form, and our team will work to match you to a local dealership that works with lenders that help people in many types of credit situations, including no credit, bad credit, and bankruptcy. Don’t wait around to get the auto loan you need – the time is now!
