Best Time of Month to Buy a Car: A Guide for Savvy Shoppers
If you are looking for a new car, you might be wondering when is the best time of month to buy a car. After all, buying a car is a big investment, and you want to get the best deal possible. In this article, we will explain how the car sales cycle works, and how you can use it to your advantage to save money and negotiate better terms.
How the Car Sales Cycle Works
Car dealerships have monthly sales quotas that they need to meet in order to earn bonuses from the manufacturers. These quotas are usually based on the number of cars sold, not the profit margin. This means that at the end of the month, dealerships are more willing to lower their prices and offer incentives to sell more cars and reach their targets.
However, not every month is the same. Some months have more sales days than others, which gives dealerships more time to sell cars. Some months also have holidays or special events that boost car sales, such as Labor Day, Black Friday, or Presidents’ Day. These factors affect how much pressure dealerships feel to sell cars at the end of the month.
When is the Best Time of Month to Buy a Car?
The best time of month to buy a car depends on several factors, such as the type of car you want, the supply and demand in your area, and the current market conditions. However, as a general rule of thumb, you can follow these tips to find the best deals:
- The last week of the month: This is when dealerships are most likely to offer discounts and incentives to meet their monthly quotas. However, this also means that they might have less inventory and less room for negotiation.
- The last day of the month: This is when dealerships are most desperate to sell cars and close deals. However, this also means that they might be very busy and have less time to attend to customers.
- The last day of a long month: This is when dealerships have more sales days and more pressure to sell cars. For example, March, May, August, and October have 31 days each, which gives dealerships an extra day to sell cars.
- The last day of a quarter: This is when dealerships have quarterly sales quotas that they need to meet in addition to their monthly quotas. For example, March 31st, June 30th, September 30th, and December 31st are the last days of each quarter.
- The last day of the year: This is when dealerships have annual sales quotas that they need to meet in addition to their monthly and quarterly quotas. This is also when dealerships want to clear out their old inventory and make room for new models. For example, December 31st is the last day of the year.
How to Negotiate the Best Deal
Knowing when is the best time of month to buy a car can help you save money and get better terms. However, you still need to do your homework and negotiate with confidence. Here are some tips to help you get the best deal:
- Do your research: Before you visit a dealership, do some online research on the car you want. Compare prices from different sources, such as Kelley Blue Book, Edmunds, or TrueCar. Find out what other buyers are paying for the same car in your area. This will give you an idea of what is a fair price and what is a good deal.
- Shop around: Don’t settle for the first offer you get. Visit multiple dealerships and compare their prices and incentives. You can also use online tools or apps to request quotes from different dealerships without leaving your home. This will give you more leverage and bargaining power.
- Negotiate on the total price: Don’t focus on the monthly payment or the trade-in value. These are variables that can be manipulated by dealerships to make a deal look better than it is. Instead