Buying a new car is one of the biggest financial decisions many people make. Because of that, many shoppers spend a lot of time trying to determine the best time of the month to buy a car. There are many myths going around as to the best time of month to buy a car.
Some will even tell you that a rainy day is the best time because there won’t be many other shoppers around and salespeople will be eager to sell something.
But that cuts both ways. If a salesperson sees you sloshing around in the wet, he’ll think you need a car so urgently that you won’t notice or care if the price goes up.
Others will tell you that a holiday period is a good time because business is slow then. But again, the dealer knows the holidays are coming up and will probably factor that into his price.
Historically, the months of November, December, and January are the slowest at new car dealerships. However, in these months, dealers are eager to move out inventory because few people are visiting their showrooms.
Some also say that you might try buying in March because the fiscal year for several automakers ends on the last day of that month, and they tend to pile on incentives and discounts. As a rule, try to avoid buying in April. That’s generally been one of the most crowded selling periods because millions of car shoppers receive tax refunds, and as a result, discounts are sparse in April.
Does the Day of the Week Matter?
Another tale has it that early in the week is a good time to buy because most people buy on the weekend when they have no work commitments. This is supposed to be a busy time for the dealer, but early in the week the dealer has more time to give you. The dealer may also have more time to figure out how to get a better price for the car.
Some say early in the week can be the best time of a given month to buy a car because sales people have more time to work with you after a busy weekend. Most dealers have a quota of sales they need to fill, and it runs per month.
Why the End of the Month Can Save You Money
So what if they are short of their quota and the month is nearing its end? You figure they could be looking for ways and means to get rid of a few more cars and meet their quota.
Well, you’ve got it. Dealerships often work on a quota from the factory, and the factory will give them bonuses or significant rebates for selling a certain number of cars. So if they are under their quota, they’ll be desperate to sell in that last week or even the last few days.
This could give you an advantage, as they are likely to offer you a really great deal on the car that you want to buy. They are not really losing on that big discount, as they will make it up in their factory bonuses.
So what if the dealership is short on their sales quota at the end of the month? The dealership can earn significant rebates for selling a certain number of vehicles. If they are under their quota, they will be desperate to sell in the last week of the month. This can give the consumer a big advantage to save money and time. Dealers often work on a stair-step program that can earn the dealership extra dealer cash that can pay them thousands of dollars if they hit their new car goals.
Take Advantage of Dealer Incentives
The end of the model year is also a good time to purchase a car. Dealers are anxious to get rid of the old models before the new ones come out, and this can translate into some surprisingly good deals for the buyer.
Check out Edmunds.com for a list of the best new car deals available. Check for incentives and rebates to find out about low-interest factory financing offers, cash rebates, and dealer incentives.
Do Your Research Before Buying
While you’re trying to figure out the best time of the month to buy that car, remember that the best time is probably when you need one and after you’ve done your research. Remember that the best time of month to purchase a car is when you are ready and have finished your research.