When Is the Best Time to Buy a Car?
When is the best time of year to buy a car? The answer depends heavily on your individual needs and finances. There are certain times of the year, month and (sometimes) week when you could be more likely to encounter special pricing or discount offers. Here are some tips for buying the car of your dreams while sticking to your budget.
End of the Year
Typically the end of the calendar year can be a good time to save money on a new car, as that is a time when many car dealers are looking to meet their annual sales goals and clear out their inventory to make room for the next year's models. You may be able to find cars from the outgoing model year with significant discounts and generous incentives. Often, December shoppers receive the year's highest discount off the Manufacturer's Suggested Retail Price (MSRP) — 6.1% on average, according to Edmunds data.1
End of the Month
In addition to annual sales goals, salespeople in the auto industry typically have monthly or quarterly sales targets to meet. Buying from a dealer on the last few days of the month may bring you satisfying savings. Do your homework, though. Look online for incentives being offered by the automaker of the vehicle you're interested in. That may help you estimate the sticker price of the vehicle so you can decide how you’d like to approach negotiating a price.2
Holiday Weekends
Whether Presidents Day, Memorial Day, Independence Day, Labor Day, or Black Friday are around the corner, there are typically holiday deals to be had. Edmunds3 suggests using the weeks and days leading up to the holiday to browse, set your budget, read reviews, set up a test drive and settle on a payment method.
When you're ready to buy, a holiday weekend purchase can typically mean cash rebates and other incentives, as well as a better chance of negotiating a price that meets your needs.
When Is the Worst Time to Buy a Car?
Just as buying at certain times of the month, year or redesign cycle is likely to save you some money, there are also times that you might want to avoid as a smart shopper. If a new model just came out, you’ll likely pay the highest price to get it right away.
The beginning of the month is probably also not your best time to get a good deal. During this period, salespeople and dealers may be less likely to negotiate when they're not yet worried about meeting their sales goals.
Additionally, car buyers should try to avoid Saturdays, unless you're there to get a holiday weekend deal. Dealers typically are the busiest on these days and salespeople may have less time to chat and negotiate your best price. It may also be challenging to be certain that your new car is insured if you buy on a weekend. However, you may be able to set a policy up in advance, so contact your independent agent or Travelers representative for guidance.
Of course, timing isn't the only factor affecting car prices, they can vary based on many factors. So, to give yourself the best chance of getting the vehicle that's right for you at the most reasonable price, do your research before heading to the dealership.
To learn more about car insurance from Travelers, find a local independent agent or contact your Travelers representative.
