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When Is The Best Time To Buy A Car?
●August 26, 2021●4 minute read
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The process of buying a new car can be a stressful experience. Once you step into the dealership, salespeople are at every turn, ready to wheel and deal you into making a big purchase in a small amount of time. But one thing that can steer the process into a smoother experience is knowing you have set yourself up for a great deal. One of the best ways to do this is by choosing a good time to buy.
With a bit of patience and consideration, timing your car purchase can have a major effect on the bottom line price tag. The time of year, day of the week, and time of day should all be considered if you are looking for an edge in the market.
Below, we discuss the best time for you to get a new set of wheels.
The best day of the week
It turns out the best day of the week to buy a new car is Monday. Why? Because, if you visit a car dealership, the sales representatives will likely have fewer potential buyers and more time to negotiate. Since there are fewer customers, the salesperson will be more focused on the people walking through the door. After a busy weekend with a lot of good car sales, the salesperson will likely strike up a better deal or simply offer more discussion. If you have a way with words and the sales representative has the time, they might even throw in something extra like a free car wash or a free oil change.
The best day of the month
Car shopping at the end of the month or quarter is going to be a potential sweet spot for buyers as sales targets loom and bonuses are at stake. That’s when there may be bonus opportunities for the salesperson or the dealership, giving them another reason to sell you that flashy new car. Hit the target and car companies might provide the dealer with extra marketing support, bonus cash on each sale, or points in an incentive program. If the sales manager is in a sweat, pushing to hit the target in the last sales week of the month or quarter may be enough motivation to cut you a good deal, record a sale, and bump up their chances for bonus benefits. However, you may not be able to choose specific features or colours, so make sure you enter the precinct with an open mind.
The best day of the year
If you want to save some money, consider spending New Year’s Eve at your local car dealership. Since it is common for car dealers to have monthly, quarterly, and annual sales targets, the last day of the year is when great deals abound. For car dealerships, the end of the year signals the start of an intense sale period, with a big focus on clearing current model-year stock. Last year’s model is traditionally harder to get excited about in the new year, and dealers will be more determined than ever to roll it out of the precinct.
If the idea of spending New Year’s Eve at a car dealership isn’t for you, then wait until the new year. January, February, and March are considered carry-over months where car models from last year begin to look less and less appealing. This is why car dealerships will kick off a New Year sales campaign, offering discounted price tags, or extra equipment incentives on cars built in the previous year.
Additionally, there are year-end and holiday sales in December.
The best month of the year
End Of Financial Year Sale (EOFYS) is a momentous occasion filled with feverish pens and bustling cheque books. Our bank accounts begin to overflow with savings, and every car on the market has been slashed to hot new prices. As the biggest seasonal sale period of the year, consumers and dealers become a little less picky and a little more gung-ho. Sales activity usually supports this with June being the busiest month on the annual auto sales chart. It will be a hard occasion to miss, since advertisements are inescapable throughout the EOFY sales, and many know this is the month to buy a car in Australia. If you can push through all of the temptations and wait until the very last day of the financial year, you’ll have a better chance of receiving the best possible deal.
A final note
Keep in mind that timing isn’t everything and you need to be in a good position to swerve out of a dealership in a flashy new car. That means having your finances in order, setting aside a budget, and ensuring that you have a solid credit score. It’s important that you know your credit score and how much you can afford, otherwise, you could end up paying more than what the car is worth thanks to a hefty boost in interest charges. Make sure you do your research and know exactly what kind of car you are looking for.
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Written by Charlotte Monteath
Charlotte Monteath is a Content Intern at Jacaranda Finance. She has a Bachelor of Business Management & Journalism from the University of Queensland.