As a general rule, the best deals on new cars are tied to dealership and manufacturer sales targets. The closer you are to these milestones, the more likely you are to find a better deal that moves inventory faster. In order of preference, the best time to buy a car is the end of the year followed by the end of the quarter and end of the month.
Matt Jones, senior director of industry and dealer relations at TrueCar, which tracks industry trends, says that discounts this year should be similar, with even more incentives (like cash-back offers or free add-ons), particularly for more expensive vehicles. “Presidents Day sales offers start to roll out in the beginning of February,” he says. Dealerships also tend to offer comparable discounts during Memorial Day and Labor Day weekends.
Savings tend to increase as the year goes on, as dealerships look to meet quarterly and annual sales goals. Additionally, the outgoing model year vehicles are often discounted to make way for the new models. This typically leads to additional manufacturer incentives, which explains why holiday sales events are such a big deal. Based on that, December is the best month to buy a new car. Buyers save an average of 10.3% off MSRP, which is 1.7% more than the least lucrative months.
The end of the month is usually the best time to buy, once again due to dealerships looking to meet sales goals. You can expect to find greater savings after the 20th of each month. There can be exceptions, including holidays earlier in the month such as President’s Day, Independence Day, and Labor Day. Manufacturers sometimes offer additional incentives during these long weekends, making it a great time to shop.
The holidays are a popular time for all kinds of shopping, and they’re also a great opportunity to get a great deal on a new car. In addition to President’s Day, July 4th, Labor Day, Memorial Day, and Black Friday are also some of the best times to buy. And of course, you can expect great savings during the week of Christmas.
While it’s always a good idea to wait for the best deal available, sometimes timing just isn’t on your side. If you do end up needing a new car ASAP than It’s better to take the time to research your options before buying.