Best time to buy a car – Forbes Consultant

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Buying and owning a car is expensive, making it a big financial decision. The average cost of a new car was at an all-time high of $ 46,000 in October 2021, according to Kelley Blue Book and Cox Automotive. Similarly, the average entry price for a used car broke a record at $ 26,971. And prices continue to rise every month, making it harder to determine when is the right time to buy a car.

Due to the unique financial situation of everyone, the best time to buy a car varies. There are two factors that help determine when to pull the trigger and which vehicles fall into your price range: your affordable price and your budget. While there are peak times and discounted holidays for car discounts, it is best to buy a car when you find a deal that is within your means and an offer that you can afford.

Use these tips to help you determine the best time to buy a car.

Buy a new car: Patience is the name of the game

Research time is essential for a successful car purchase. Do your due diligence at local car dealerships to locate their stock and find out what incentives they can offer to prospective customers.

Get what you want for the vehicles you want — year, make and model, sticker price, financing options, standard features, manufacturer discounts, shipping costs, and even color options. In addition to the right purchase schedule, updating increases your chances of getting a better offer.

Delegation inventory cycles

The Covid-19 pandemic has made car prices volatile and vehicle supply unpredictable. However, developing a working knowledge of how car dealerships manage their inventory remains a reliable way to reach a good deal. There is a strong correlation between the supply of new cars on the market and the fall in the price of the previous model.

If your goal is to buy a new vehicle at the best possible price, the ideal time of year would be towards the end of the year — usually between the summer and winter months — when dealers clear their many unsold cars to make room for next year. models. Any unsold new vehicles are discounted during this period to attract more jobs, which means you are given the opportunity to buy a new car at lower market prices.

Identification of old dealership stock

It is also worth checking if the cars on your list have accumulated dust in the dealer’s batch for a while.

The old stock, while it is a broad business term, in this case refers to cars that have remained unsold and the dealer is willing to significantly reduce the price of the sticker to make a sale. If you can determine which car models fall into this category before you visit the dealership, you will have bargaining power.

Electronic tools, such as CARFAX and Autotrader, show you exactly when a particular vehicle was put up for sale and how long it has been in the dealer batch. You can use this information to determine the best time to buy a car.

Black Friday offers

Black Friday is a popular time for retailers to offer promotions and discounts. Most manufacturers and dealerships also have Black Friday deals on new vehicles, which means they can be branded if you want a new or certified used vehicle.

These deals range from discounted car prices to financing, zero loan rates or additional in-vehicle entertainment and safety features.

Buy around for manufacturer incentives

In addition to tracking dealerships’ offers, car manufacturers themselves usually offer a combination of one-off and recurring incentives that may apply to you:

  • Discounts or cash back. Buyers receive discounts on new cars from the manufacturer through the dealer. This is also known as a purchase bonus, cash back or bonus cash. These are short term offers that are usually based on a holiday season. These deals are not the same between manufacturers or sites and tend to have suitability requirements.
  • Low or interest-free financing. Some dealerships offer car loans with very low or 0% interest rate for a period of time — usually between 60 and 72 months — which can save you hundreds of dollars in interest. Manufacturers usually require that you have strong creditworthiness and borrow money from their financing company to qualify for the promotional rate.

Related: Find new cars for sale near you

Buy a used car: Act fast

If you are ready to buy, qualify for financing and have found a used car that suits your needs, do not wait. Used cars stay in the batch for 34 days, on average, according to Cars.com, which is shorter than in previous years. This is especially true for recent models in good condition without wear.

If owning a car is critical to your daily life, patience is not a luxury you can afford. If nothing else, plan ahead so that when the time comes, you have already done the legwork in terms of research and other preparatory steps. This will enable you to spot opportunities faster and act faster, which can save you thousands of dollars.

Related: Find used cars for sale near you


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