The 3 Best Times To Buy A New Car
If you are in the market for a new car then 2010 is a good year to purchase a vehicle. The auto industry is in recovery mode and are giving out massive incentives to customers to purchase new cars. Toyota massive recalls has force the car manufacturer to offer great deals, such as zero percent financing for as much as 5 years on most of its make and models.
Other auto manufacturers together with their respective auto dealers are offering zero percent incentives as well. Chevrolet, Honda and Ford to name a few. With the market for cars on the rebound it is uncertain if these fantastic deals will be offered next year.
So now is the time to buy. In fact, industry experts are saying that there will be less auto inventory for dealerships to sell, although walking into a car dealership at the right moment can make a huge difference. . Industry experts, like Kelly Blue Book, TrueCar.com and others who gather and analyze data on car purchase by U.S. buyers say that there are basically three opportune time to purchase a car.
1. At the End of the Year
One of the best time to buy a car this year will be December 26. Experts determine that on that day car dealers will offer new make and models on the average of 6.85 below Manufacturer Suggested Retail Price (MSRP).
November 26 is another great day to purchase a vehicle. This is the day after thanksgiving and dealers usually start applying discounts around 7 percent. In fact, the last three months of the year are the car buyers market.
Within these three months are the days after Christmas and Thanksgiving which are huge shopping days. Why are cars cheaper at the end of the year? Well, this is the time when car dealers are trying to quickly get rid of last year’s model to allow room for the new year’s models.
This effort is also encouraged by manufacturers who offer bonuses and volume dependent incentives to dealers. Also, car dealers have to meet certain quotas or target sales, so they offer incentives to increase sales.
2. Ending of the Model Year
Like in most business, the end of a car model year does not usually correspond to the natural calendar year. Prior to car manufacturers releasing new models and sometimes new makes (in cases where some makes will no longer be made) dealers are encouraged to get last years model sold to make room for the new models. Since new models are hotter selling items, it makes good business sense for car dealers to have the latest inventory for sale.
In addition, since new models sell for more money, owing in part to demand and new features, it is more financially beneficial to sell them. So huge discounts are offered to the buyer at the end of model year to make space for the new and more profitable inventory.
New model cars begin to arrive at dealership in the latter part of the summer. This is why later in the year you may be able to purchase a new car at a cheap price for the simple fact that space is to be made for 2011 models. Be careful with your selection. Buy a car with a very good resale value.
Some cars loss value quicker than others. Toyota, Honda and Ford have good resale value. Do not buy if the 2011 model is not a carryover or redesign of the 2010. Carryovers have great similarities to the older model, while redesigns have significant improvements in design, performance and features.
The difference in the discount on redesign verses carryover can be significant enough to alter your selection. You can get up to 5 percent more discount on a model that is facing redesign that one that is carryover.
3. End of Month Another Good Time to Buy
Owing to the fact that most car dealers have a monthly quota or sales target to meet, car dealers try to quickly move vehicle on the lot by offering huge discount at the end of the month. Manufacturers will offer dealers financial incentives to move a certain number of vehicles, and that incentive is usually past on to the buyer.
Expert advice that before you go to the dealership to purchase a car, you should do some research online. There are many incentives online that may not be offered online, including deals on auto loans, and you can submit inquiries to a larger selection of dealers for the best prices.
