For those looking to get the best price on their brand-new vehicle, timing can be a very important factor for a variety of reasons. Going in at the right time of month and/or the right time of year can put you in a great position to maximize your savings. So, when should you look to purchase your new car?
“A great time to start is when manufacturers are looking to clear out the old model year and bring in the new,” says R. James Matthews, President & CEO, Armada Data, parent company of CarCostCanada. “This will vary slightly between manufacturers, however late summer/fall tends to be a great time to maximize savings on a new car purchase. This is due to the fact that manufacturers will increase the incentive offerings on the current model year vehicles to clear them out and make room for the new model year.”
For those who may be wondering, what are manufacturer incentives/rebates? Simply put, an incentive is a discount offered directly by the manufacturer to consumers. These discounts can be passed down for a number of reasons, however common examples include: cash buyers, recent graduates, Costco members, military members etc. When manufactures want to move more units, they will either increase discounts on current programs or create new programs which means more savings for you!
Best time of the month to purchase
We’ve discussed how purchasing at the right time of year can allow you to save more by way of incentives. It turns out that purchasing near the end of the month can often times allow you to garner even greater discounts from the dealer for one simple reason. Dealerships will often be given expected sales targets from the manufacturer and will be financially rewarded for reaching or exceeding these targets. This can help you in your purchase because dealers may be more motivated to sell to meet those monthly sales targets. In summary, purchasing near the end of the month will always put you in a good position to get the best price possible.
Putting it all together
For those looking to fully maximize their savings, what you might want to try is to purchase in the summer or fall, and at the end of the month. What you’ll also want to pay attention to is the availability on the vehicle you’re looking to purchase; you don’t want to wait until there are no vehicles in stock or until it is past the factory order date for the vehicle you are looking to buy. In conclusion, there are three simple things you’ll want to keep in mind when it comes to timing your new car purchase:
- Buying in the late summer/fall will allow you to take advantage of the biggest incentive programs
- Dealers will be more motivated to sell at the end of the month to hit sales targets
- Be aware of the stock supply and factory order deadlines on the car you want to purchase