Buying a car should be reserved for when you need one, right? Not exactly. The right time to buy a car can save buyers thousands of dollars, and with less inventory, they might find exactly what they’re looking for. Cars are always in season, but the market often goes through waves throughout the year.
Most people don’t pay attention to how the car market fluctuates. In fact, dealerships operate with monthly, quarterly, and annual quotas to fulfill. The more they have sold, the more they earn. Thus, understanding these cycles either makes you the smartest buyer there ever was or subjects you to the whims of a desperate seller.
Let Everyone’s New Year’s Resolutions Help You Buy A Car
The best month of all time to buy a car is December. Why? Because with a new month – and year – around the corner, everyone wants to get their numbers in before 2023. At the same time, manufacturers want to get last year’s vehicles off of their lots, and salespeople look towards year-end bonuses.
Therefore, when a vehicle has been on a car lot for more than six months, management has a reason to want it gone – to make room for new things coming in. For instance, if a new style hits in January 2023, it can’t come in if they have excess January 2022 cars.
Thus, by having December as one of the best months for buying a car, the reasons make sense. Established dealership car locations should support this reality. The better prepared and inventory there is, the more lenient the salespeople are with numbers during this red-hot selling opportunity.
But December isn’t always the only prime time.
New Model Year Giveaways
New model years do not come with January each year; more often than not, new model years come around August-October. This means that other model years need to be liquidated first. The transition period gives buyers more of an advantage if they want a new car!
But it’s a double-edged sword – while every buyer is looking for inexpensive cars from 2021-2022 while turning theirs in for newer models – for upgraded features and newer technology – buyers will have fewer options and colors to choose from if they do not act fast enough.
Therefore, come springtime, buyers may miss out on great features if they are super picky; however, if they’re not looking for anything specific, saving financially comes with ease.
Cold Weather Means Less Competition
Believe it or not – less buyers walk into dealerships during winter months since buyers are dealing with gifts and bills from December; their minds are elsewhere than car buying.
In fact, February is one of the slowest months across the board; therefore, sales teams have more time to communicate well with potential buyers instead of stressing about who’s next.
There is also a reason why dealerships want to sell; a lot that hasn’t moved for months needs to leave, or else management won’t have room for something newer or better instead of sitting around.
There is an uptick in business as spring approaches and tax returns come rolling in; people want to upgrade (or downgrade) based on financial acquisitions. Therefore, with more competition at the end of winter and with summer approaching stability comes with a price – a price that will benefit a buyer most when they buy then instead of the spring.
Each Month Counts
Beyond seasonal considerations, each month brings an opportunity to buy a vehicle at the end of each month because salespeople want their monthly bonuses. The best time of the month is typically the last three days.
But this period becomes exponentially more favorable at the end of quarters (March, June, September, December) because bonuses from manufacturers’ quotas rely on meeting certain sales goals. This is when experienced car sales teams are most motivated to work with buyers on pricing and terms, since hitting these targets often determines their quarterly earnings and dealer incentives.
In addition to interest rates rising and falling (thus providing options for buyers at one point but not another), gas prices rise and fall like a pendulum as well. There’s a certain sensitivity from buyers when gas prices are higher since trucks can barely move because all anyone can afford is energy-efficient cars.
If buyers are fortunate enough – and have good credit – to buy what they’re looking for during these optimal timing windows, significant savings become possible. Otherwise, more modest deals might be available for those who wait for the right combination of monthly cycles and market conditions.
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There’s A Better Time To Buy New Cars Or Used Cars
The markets generally don’t cycle for new versus used cars. New cars have predictable patterns depending on manufacturer cycles and loans whereas used cars depend on local sensations and current markets.
New cars become lower in price come January – it’s wintertime and no one wants to buy – but used car evaluations fluctuate depending on who turns in and who gets what is determined by financial limits. For example, many people who sell their 2021 Vehicles may also sell their 2022 cars newly acquired now to someone looking for something different.
Timing Isn’t Everything – but it Helps
Timing is great – but if there are specific circumstances that make a buyer need a car right now – then June 1 may be better than waiting until mid-July since prices may drop then. Thus, it’s better to wait than to rush – but there are no guarantees.
If owners don’t mind waiting but might only give it a few weeks here and there until they can get optimal pricing options, then putting a timeline into effect may help.
It’s one thing to have realistic expectations but it’s another thing to think a sale that’s no longer needed will meet their sensibilities just because it fits better into someone else’s timeline.
Now that realistic expectations are set due to negotiations revolving around countless patterns available – buyers will either get the best price possible or selection based on seasons!
