When Is the Best Time to Buy a Car?
Summary
The best time to purchase a car depends on more than the date. Here's what to consider when you're looking for the best deals on new or used vehicles.
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You’ve probably heard the phrase, “Timing is everything.” If you’re in the market to buy a car, planning ahead could help you get a better price on your purchase.
Preparing to buy a car
Before you start your search for a new car, take these steps to prepare.
Set a monthly budget: Review your income and expenses to figure out whether you have room in your budget for a new monthly auto loan payment. If so, think about what you might comfortably afford.
Save for a down payment: The more money you can pay toward the purchase upfront, the less you may need to borrow.
Shop for car insurance estimates: Whether you’re buying a new or used car, switching vehicles could mean a different auto insurance premium. Before committing to a sale, consider getting an estimate from your insurance provider.
Check your credit score: A healthy credit score could potentially help you qualify for a lower interest rate. If your credit score isn’t as high as you’d like, you may want to take some time to improve it before moving forward with a car purchase.
Compare borrowing options, if needed: If you plan to finance your purchase, reviewing personal loan and auto loan offers before you shop could help you set a realistic budget, based on what your monthly payment may be.
If you’re feeling prepared to buy a car, consider waiting for one of the following opportunities. Timing your purchase wisely could help you find a bargain and save money in the long run.1
Best months to buy a car
If you’re not in a hurry, waiting for seasonal sales could offer an advantage.
October
In October, most dealers and manufacturers are preparing to transition to next year’s models and evaluating how much room they need to clear on their lots for new vehicles. If salespeople and dealerships are motivated to empty their space, they may be willing to give you promotional deals and extras on outgoing models.
November
November kicks off the holiday shopping season. Many end-of-year promotions start around this time, which could mean you get a better deal on newer models.
Since many people choose to trade in their cars to take advantage of these sales and maximize trade-in values before the new year, November could also be a great time to shop for a used car.
December
December can be one of the best months to buy a vehicle because dealerships are often focused on annual sales goals and year-end inventory. Some dealers may want to sell as many cars as possible before January 1, when unsold inventory may be subject to tax in many states. Annual sales performance can also affect future inventory from the manufacturer. As the end of December approaches, dealerships may be more open to negotiating if they still need to meet their targets.2
Best days to buy a car
Slower days may mean more personal attention, while month-end deadlines may give you more leverage when negotiating a deal.
Early in the week
If you’re looking for more personal attention and time to negotiate a deal, avoid the weekend shoppers. Instead, come in on a slower day, like on a Monday or Tuesday.
Last week of the month
As monthly sales quotas come to an end, salespeople are often eager to make a deal. Not all quotas sync up with the end of the calendar month, but you might get some extras or cash incentives if you know the salesperson is up against a deadline.
Best holidays to buy a car
Some of the best car deals happen around major shopping holidays. Here are a few holidays to keep in mind:
Memorial Day
The next year’s models usually start arriving in late summer to early fall, so car dealerships usually run promotions over Memorial Day weekend based on their current inventory. Search your local area dealerships to see if the make and model you want is on sale or if special financing offers are available.
Black Friday
Black Friday is a huge sales event for all retailers, and car dealerships are no exception. Not only are there usually big discounts on outgoing models, but you’re more likely to get a good deal on your trade in. Need to save time on one of the busiest shopping days of the year? Get preapproved for an auto loan before you head out to the dealership.
New Year’s Eve
If you’re thinking, “new year, new car” you might be in for a great deal if you purchase the car the day before the new year. Not only is it the last day on the calendar, New Year’s Eve is also the last day for monthly, quarterly or annual quotas for many salespeople. They’re probably feeling the pressure, so they might be more likely to negotiate the numbers. Use it to your advantage and save some money off that hefty sticker price.
Other favorable times to buy a car
New model releases and limited time offers may give you even more opportunities to save.
New model releases
Watch for the word “clearance.” Model years traditionally end around Labor Day, so look out for sales on outgoing models. If you don't have time to check out car lots (or clearance sales) in person, most new and used car dealers have an internet sales department, making it easy to check out their inventory online and find current deals. You’ll be able to see photos of the cars you’re interested in, check the Vehicle Identification Numbers (VIN) and accident reports. After you have all the info you need, you can head into the dealership, ready to negotiate.
Limited time offers
If you start to notice advertising for amazing financing and cash-back incentives, that’s a clue it might be a good time to negotiate prices. You may feel uncomfortable haggling, but many dealers will happily work with you to get a deal. Remember, they need to make a sale. Make sure the price includes all taxes and fees (called the “out-the-door” price). Stay polite and reasonable, and consider comparing prices with a few different dealers. And, if you’re price shopping with several dealers, let the dealership know. They’ll probably want to compete for your business.
You’re in the driver’s seat
Waiting for the best time to buy a car can take a lot of patience, especially if you’ve already picked out a favorite make and model. But strategically timing your purchase could help you save hundreds (or even thousands) of dollars off the sticker price. At the end of the day, the best time to buy a car is when your budget is ready for it.
Ready to purchase your next vehicle? Explore how a OneMain car purchase loan can put you in the driver’s seat and have your funds ready to go.
This article has been updated from its original posting on May 3, 2019. Matt Diehl and contributed.
Sources
1 https://www.edmunds.com/car-buying/when-to-buy-your-next-car.html
2 https://mediaroom.kbb.com/press-releases?item=105750
This article is for general education and informational purposes, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any purpose and is not intended to be and does not constitute financial, legal, tax, or any other advice. Parties (other than sponsored partners of OneMain Financial (OMF)) referenced in the article are not sponsors of, do not endorse, and are not otherwise affiliated with OMF.
