Category: best time to buy a car

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.

Purchasing and owning a car is expensive, making it a large 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. Likewise, the average listing price for a used car broke record-highs at $26,971. And the prices keep climbing every month, making it more difficult to determine when’s a good time to buy a car.

Because of everyone’s unique financial situation, the best time to buy a car varies. There are two factors that help determine when to pull the trigger and which vehicles fall within your price range: affordability and your budget. While there are peak seasons and discounted holidays for car sales, it’s best to purchase a car when you find a deal within your means and one you can comfortably afford.

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

Buying a New Car: Patience Is the Name of the Game

Spending time researching is essential to a successful car purchase. Do your due diligence on local car dealerships to scout out their inventory and learn what incentives they might offer to prospective customers.

Absorb everything you can about your desired vehicles—year, make and model, sticker price, financing options, standard features, manufacturer rebates, transportation costs and even color options. In addition to timing the purchase right, being informed increases your chances of landing a better deal.

Dealerships’ Inventory Cycles

The Covid-19 pandemic has made car prices volatile and the supply of vehicles unpredictable. Still, developing a working knowledge of how car dealers manage their inventory remains a reliable way to get a good deal. There is a strong correlation between the supply of new cars hitting the market and the drop in the price of the previous model.

If your goal is to buy a new vehicle at the best price possible, an ideal time would be toward the end of the year—typically between summer and winter months—when dealers are clearing their lots of unsold cars to make room for the following year’s models. Any unsold new vehicles are discounted during that period to pull in more business, meaning an opportunity for you to snag a new car at a below-market rate.

Identifying a Dealership’s Aged Inventory

It is also worth checking out if the cars on your shortlist have gathered dust on the respective dealer’s lot for a while.

Aged inventory, while a broad business term, in this case refers to cars that have remained unsold that the dealer is willing to slash the sticker price significantly to make a sale. If you are able to identify which car models are in that category before visiting the dealership, you’ll gain negotiating power.

Online tools, such as CARFAX and Autotrader, show you exactly when a particular vehicle was listed for sale and how long it’s been on the dealer’s lot. You can use this information to help determine the best time to buy a car.

Black Friday Deals

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, meaning there could be markdowns if you want a new or certified pre-owned vehicle.

These deals run the gamut from discounted car prices to financing assistance, zero percent introductory rates on loans, or additional vehicle entertainment and safety features.

Shop Around for Manufacturers Incentives

In addition to keeping an eye out for dealer promotions, the car manufacturers themselves typically offer a mix of one-time and recurring incentives that might apply to you:

• Rebates or cash back. Buyers get new-car rebates from the manufacturer through the dealer. This is also known as a purchase allowance, cash back or bonus cash. They are short-term promotions that are usually anchored around a holiday period. These deals are not the same across manufacturers or locations, and tend to have eligibility requirements.
• Low or no-interest financing. Some dealers offer auto loans at a very low or 0% introductory rate for a period of time—usually between 60 and 72 months—which can save you hundreds of dollars on interest. Manufacturers usually require that you have a strong credit rating and borrow the money from their financing company to qualify for the promotional interest rate.

Related: Find New Cars For Sale Near You

Featured Partner Offers

Loan amount

Starts at $7,500 (no max)

Buying a Used Car: Act Fast

If you are ready to purchase, prequalified for financing and have spotted a used car that suits your needs, do not wait. Used cars stay on the lot for 34 days, on average, according to Cars.com, which is shorter than previous years. This is especially true for recent models in good condition with no wear and tear.

If owning a car is critical to your daily life, being patient is not a luxury you can afford. If anything, do your planning ahead of time so when the time comes, you have already done the legwork in terms of research and other preparatory steps. This will put you in a position to identify bargains faster and act quickly, which may save you thousands of dollars.

Related: Find Used Cars For Sale Near You

Compare Rates and Save on Your Auto Loan

Get up to 4 loan offers in minutes at myAutoloan.com.

Source: https://news.google.com/__i/rss/rd/articles/CBMiQWh0dHBzOi8vd3d3LmZvcmJlcy5jb20vYWR2aXNvci9hdXRvLWxvYW5zL2Jlc3QtdGltZS10by1idXktYS1jYXIv0gEA?oc=5

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.

Purchasing and owning a car is expensive, making it a large 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. Likewise, the average listing price for a used car broke record-highs at $26,971. And the prices keep climbing every month, making it more difficult to determine when’s a good time to buy a car.

Because of everyone’s unique financial situation, the best time to buy a car varies. There are two factors that help determine when to pull the trigger and which vehicles fall within your price range: affordability and your budget. While there are peak seasons and discounted holidays for car sales, it’s best to purchase a car when you find a deal within your means and one you can comfortably afford.

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

Buying a New Car: Patience Is the Name of the Game

Spending time researching is essential to a successful car purchase. Do your due diligence on local car dealerships to scout out their inventory and learn what incentives they might offer to prospective customers.

Absorb everything you can about your desired vehicles—year, make and model, sticker price, financing options, standard features, manufacturer rebates, transportation costs and even color options. In addition to timing the purchase right, being informed increases your chances of landing a better deal.

Dealerships’ Inventory Cycles

The Covid-19 pandemic has made car prices volatile and the supply of vehicles unpredictable. Still, developing a working knowledge of how car dealers manage their inventory remains a reliable way to get a good deal. There is a strong correlation between the supply of new cars hitting the market and the drop in the price of the previous model.

If your goal is to buy a new vehicle at the best price possible, an ideal time would be toward the end of the year—typically between summer and winter months—when dealers are clearing their lots of unsold cars to make room for the following year’s models. Any unsold new vehicles are discounted during that period to pull in more business, meaning an opportunity for you to snag a new car at a below-market rate.

Identifying a Dealership’s Aged Inventory

It is also worth checking out if the cars on your shortlist have gathered dust on the respective dealer’s lot for a while.

Aged inventory, while a broad business term, in this case refers to cars that have remained unsold that the dealer is willing to slash the sticker price significantly to make a sale. If you are able to identify which car models are in that category before visiting the dealership, you’ll gain negotiating power.

Online tools, such as CARFAX and Autotrader, show you exactly when a particular vehicle was listed for sale and how long it’s been on the dealer’s lot. You can use this information to help determine the best time to buy a car.

Black Friday Deals

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, meaning there could be markdowns if you want a new or certified pre-owned vehicle.

These deals run the gamut from discounted car prices to financing assistance, zero percent introductory rates on loans, or additional vehicle entertainment and safety features.

Shop Around for Manufacturers Incentives

In addition to keeping an eye out for dealer promotions, the car manufacturers themselves typically offer a mix of one-time and recurring incentives that might apply to you:

• Rebates or cash back. Buyers get new-car rebates from the manufacturer through the dealer. This is also known as a purchase allowance, cash back or bonus cash. They are short-term promotions that are usually anchored around a holiday period. These deals are not the same across manufacturers or locations, and tend to have eligibility requirements.
• Low or no-interest financing. Some dealers offer auto loans at a very low or 0% introductory rate for a period of time—usually between 60 and 72 months—which can save you hundreds of dollars on interest. Manufacturers usually require that you have a strong credit rating and borrow the money from their financing company to qualify for the promotional interest rate.

Related: Find New Cars For Sale Near You

Featured Partner Offers

Loan amount

Starts at $7,500 (no max)

Buying a Used Car: Act Fast

If you are ready to purchase, prequalified for financing and have spotted a used car that suits your needs, do not wait. Used cars stay on the lot for 34 days, on average, according to Cars.com, which is shorter than previous years. This is especially true for recent models in good condition with no wear and tear.

If owning a car is critical to your daily life, being patient is not a luxury you can afford. If anything, do your planning ahead of time so when the time comes, you have already done the legwork in terms of research and other preparatory steps. This will put you in a position to identify bargains faster and act quickly, which may save you thousands of dollars.

Related: Find Used Cars For Sale Near You

Compare Rates and Save on Your Auto Loan

Get up to 4 loan offers in minutes at myAutoloan.com.

Source: https://news.google.com/__i/rss/rd/articles/CBMiQWh0dHBzOi8vd3d3LmZvcmJlcy5jb20vYWR2aXNvci9hdXRvLWxvYW5zL2Jlc3QtdGltZS10by1idXktYS1jYXIv0gEA?oc=5

End of the financial year

June, the end of the financial year for Australia, is usually the best time of the year to buy a car. This is when manufacturers and dealerships generally are slashing prices, offering lower financing, or free services for vehicles, to maximise yearly profits and reach their EOFY targets.   

This can be a good time to buy your car at a discount, receive a bonus like an extended warranty, roadside assistance or free accessories such as floor mats, alloy wheels and window tinting. It also works well for business buyers to gain a tax advantage. 

Note that dealerships know that June is when the majority of customers are looking to upgrade their car. Therefore, the deal you get may not be as beneficial as during other sales times of the year for that specific dealership.  

Keep in mind that some makers, such as Japanese car manufacturers, have a different end of the financial year in March. So, depending on which brand you are planning to buy, ensue you research their specific EOFY period.

End of the calendar year

December could also be a great time to buy your car. Dealers are more motivated to sell their cars because they will soon become last year’s models. A car with the previous year’s build plate is usually harder to shift into the New Year, so you can look forward to various incentives from dealers to sell in December, such as additional equipment and even cash bonuses.

European, Japanese and South Korean models spend about two to three months on a ship to make their way to Australia. This means that the car you buy in December may have rolled off the production line in August or September.

The new year

The new year could also have clearance sales of the previous year’s cars at discounted prices.  January is a carry-over month of the previous year’s cars for dealers, who are motivated to sell them at discounted rates before February-March when these cars become less appealing to buyers.

It’s good to be aware that every car in Australia carries a build plate and a compliance plate, each of which is located in the engine bay. The build plate has the unique vehicle identification number (VIN) and the engine, transmission and paint codes, along with the date of manufacture, which is usually the month and year. The compliance plate confirms the VIN and has the month and year the vehicle was certified as compliant with the Australian Design Rules (ADR) and approved for sale.

In the case of vehicles that have been imported into Australia and have travel times on ships, the date of compliance will be different from the date of manufacture. For example, if you purchased and registered your new car in March 2021, it will show 2021 on the compliance plate, but the build plate will list the date of manufacture as November 2020. The build plate date counts to show the model year of the car, which in this case is 2020.

Do bear in mind that it’s always a good idea to clarify the build date of the car you intend to buy.  In extreme cases of slow-moving models, what looks like a 2020 model could well be a 2018 one, as it has been lying around unsold at the dealer or distributor.

The end of the month

Dealers often have end of month sales targets to achieve, or perhaps a certain volume of sales at the end of the month, to receive a bonus from the manufacturer. This makes end of the month deals an option to consider when buying your new car. It is possible to get good end of the month discounts from dealers looking to achieve a significant manufacturer bonus, making the end of the month another best time to buy a car.

Model run-out

New models of cars will run out of their sheen and demand after a couple of years, as and when new models arrive. These cars are perfectly good and also great to negotiate a good price with the dealer. It’s good to know how long a model has been on sale or how soon a new or updated version is likely to arrive. This can put you in an excellent position to negotiate. 

For example, if a car has been around for three or four years, it is likely to be due for an update. Similarly, if a vehicle has been around for over seven years, a new model is expected to be on the way. Both these scenarios make a good basis to bargain on the price of model run-out cars.

Source: https://news.google.com/__i/rss/rd/articles/CBMiSmh0dHBzOi8vd3d3LnJhdGVjaXR5LmNvbS5hdS9jYXItbG9hbnMvYXJ0aWNsZXMvYmVzdC10aW1lLWJ1eS1jYXItYXVzdHJhbGlh0gEA?oc=5

Did you know that new car incentives are 40% higher during one particular time of the year? Or that used car prices are more negotiable now than at any point in 2022? It’s amazing how much money you can save with a bit of knowledge that car dealers don’t want to share. At YAA, we strive to make car buying and ownership easier, less expensive, and simply a better experience. Helping the consumer save money is what drives us. In this guide, we’ll go over the best time of the year for buying a car. If you’re determined to spend less on your next set of wheels, we think you’ll find this information valuable.

The Best Time to Buy a Car Has Changed

As manufacturer incentives plummet, car buyers are looking for other ways to save.

Average new car transaction price (orange) versus average incentive spend as % of transaction price (blue). Source: Cox Automotive

The demand for new and used cars continues to outpace supply as automakers have a really hard time increasing production. Global supply shortages have affected car makers on every continent. However, the situation for car buyers is improving in late 2022. After almost two years of ridiculous prices, deals can finally be negotiated. 

The best time of the year to buy a car has changed. Pre-pandemic monthly trends may return someday (if automakers ever get back to normal inventory levels), but let’s talk about where things stand in 2022 and early 2023.

Wait a Few Months For the Best Deal

In late 2022 and early 2023, new and used car prices are dropping. This is not a normal time for car price trends. Price declines are more pronounced in the used car market, but select new models are negotiable too. 

Let’s cut to the chase:

The best time to buy a car lies in the months ahead. Deals can be negotiated today, but your leverage for lower prices will increase in December and in early 2023. 

The last week of the year is usually the best time to buy a car. Incentives and negotiation leverage improve as dealers hurry to move the last of the previous model year off of their lots. 

Let’s talk about the used car market. Wholesale price declines are finally translating to lower used car prices (more on that here). This was confirmed by the November Consumer Price Index (CPI) report that showed used car prices were down -2.4% month-to-month when seasonally adjusted. New car prices remained nearly flat at +0.4%, the smallest new car price increase in 2022. 

In 2022 (green), used car prices have fallen after record highs in 2021.

We track used car prices weekly. See this week’s used car price update.

New car prices are softening, despite automakers steadily raising MSRPs. Don’t expect widespread MSRP drops anytime soon. However, there lies hope in the slow return of manufacturer incentives and the demise of additional dealer markups. 

Our YAA Auto Experts have noted that domestic brands like GM, Ford, Chrysler most often present the best opportunity to get a deal under MSRP. 

In other words, your chances of buying a new car at or below MSRP are better now than at any time in the past 18 months. 

The longer you wait (into 2023), the more negotiation power you’ll have as the overall new car market softens. 

However, when it comes to total cost, it’s not that simple. Interest rates are rising to the highest levels in over a decade. If you wait longer to buy, there’s a real chance that the cost of financing may rise to the point where your monthly payments end up higher due to interest. Here’s the latest on car loan interest rates. 

Wouldn’t it be nice to finance your car with someone you trust? Finance with YAA! We work with trusted credit unions offering low rates and great customer service. Learn more and get pre-approved in minutes!

The average transaction price (ATP) of new cars has hovered around $48,000 for months. The latest data shows it continues to remain at that level. How could we possibly advocate for negotiating lower prices? The data shows that luxury car shoppers continue to buy, and that has been driving up the overall market average. Deals are out there, if you know where to look.

Average transaction prices for new cars, 2012-2022. Source: Cox Automotive

With market conditions always changing, we believe that knowledge is power. YAA’s Auto Experts are just one of the great benefits of YAA Membership. Learn more about our plans. How much money can you save? Read YAA member success stories!

Historical Norms: When Is the Best Time of the Year to Buy a Car?

Pre-pandemic data from Edmunds shows that the time around Labor Day is when most new car incentives begin, with discounts growing as the year comes to an end. Better deals continue on outgoing model years through fall and winter as new models compete with outgoing model years for space on dealer lots.

Many automakers roll out the new model year by September. If you’re okay with the outgoing model year, you have significantly more leverage to negotiate prices down. Don’t show up to the dealership expecting thousands of dollars off of the brand-new model year unless demand for new cars falls off a cliff (as it did in 2020). 

Negotiate like a PRO with this free dealership cheat sheet. Don’t buy a car without it!

Year-end car deals most often arrive as manufacturer incentives (which we keep track of every month). New car incentives were at historic lows during the worst of the chip shortage, but they’re slowly coming back as recession fears hit demand.

Here’s how current model-year savings compare with new model-year cars. Remember, these were the historic norms, and the situation in 2022-2023 has changed dramatically. 

In pre-pandemic times, this graph shows that new car incentives increased at the end of the year. This is still true, but to a lesser extent as inventory remains lower. Source: Edmunds.com via Market Watch.

Stay On Top of Market Conditions

Would you have guessed that used car prices have fallen nearly 14% at wholesale markets since last summer? Probably not, because it wasn’t until September that car prices dropped at the retail level. The car market is changing as automakers slowly come out of the semiconductor chip shortage, and consumers hold back on spending as recession fears circulate.

Here’s the bottom line: rapidly-changing car market conditions are likely to overshadow the seasonal trends that we’ve seen historically in pre-COVID times.

After 18 months of price increases, used car prices are dropping. Even if sticker prices are nearly the same, at YAA, we’ve had more members scoring deals under the advertised price. That’s why we think you should negotiate 5-10% off of a car purchase today. 

On the new car front, negotiation leverage depends on three main factors: 1) vehicle supply, 2) local dealer inventory and 2) demand for the specific model and trim. 

See the latest new car inventory numbers here.

For example, our YAA auto experts joke that everyone wants a Toyota RAV4 Prime right now. Demand is through the roof, Toyota is hardly producing any, and therefore prices for the RAV4 Prime remain insanely high. 

On the other hand, some new car models have more inventory than at any time in the past year. New car inventory isn’t on par with pre-pandemic levels, but it’s an improvement. Pair that with reduced demand, and new cars are finally becoming more negotiable. Dealer markups do exist for popular models, but you CAN negotiate pricing on new cars again.

YAA Car Search – Search new and used car listings with industry insights dealers don’t want you to see!

There’s a New Way to Buy, Sell and Own a Car

Would a live 1:1 coach make car buying less of a hassle? What about exclusive savings on financing, insurance, maintenance and more? Consider joining YAA+, the membership that pays for itself!

Source: https://news.google.com/__i/rss/rd/articles/CBMiNmh0dHBzOi8vam9pbnlhYS5jb20vZ3VpZGVzL3RoZS1iZXN0LXRpbWUtdG8tYnV5LWEtY2FyL9IBAA?oc=5

Did you know that new car incentives are 40% higher during one particular time of the year? Or that used car prices are more negotiable now than at any point in 2022? It’s amazing how much money you can save with a bit of knowledge that car dealers don’t want to share. At YAA, we strive to make car buying and ownership easier, less expensive, and simply a better experience. Helping the consumer save money is what drives us. In this guide, we’ll go over the best time of the year for buying a car. If you’re determined to spend less on your next set of wheels, we think you’ll find this information valuable.

The Best Time to Buy a Car Has Changed

As manufacturer incentives plummet, car buyers are looking for other ways to save.

Average new car transaction price (orange) versus average incentive spend as % of transaction price (blue). Source: Cox Automotive

The demand for new and used cars continues to outpace supply as automakers have a really hard time increasing production. Global supply shortages have affected car makers on every continent. However, the situation for car buyers is improving in late 2022. After almost two years of ridiculous prices, deals can finally be negotiated. 

The best time of the year to buy a car has changed. Pre-pandemic monthly trends may return someday (if automakers ever get back to normal inventory levels), but let’s talk about where things stand in 2022 and early 2023.

Wait a Few Months For the Best Deal

In late 2022 and early 2023, new and used car prices are dropping. This is not a normal time for car price trends. Price declines are more pronounced in the used car market, but select new models are negotiable too. 

Let’s cut to the chase:

The best time to buy a car lies in the months ahead. Deals can be negotiated today, but your leverage for lower prices will increase in December and in early 2023. 

The last week of the year is usually the best time to buy a car. Incentives and negotiation leverage improve as dealers hurry to move the last of the previous model year off of their lots. 

Let’s talk about the used car market. Wholesale price declines are finally translating to lower used car prices (more on that here). This was confirmed by the November Consumer Price Index (CPI) report that showed used car prices were down -2.4% month-to-month when seasonally adjusted. New car prices remained nearly flat at +0.4%, the smallest new car price increase in 2022. 

In 2022 (green), used car prices have fallen after record highs in 2021.

We track used car prices weekly. See this week’s used car price update.

New car prices are softening, despite automakers steadily raising MSRPs. Don’t expect widespread MSRP drops anytime soon. However, there lies hope in the slow return of manufacturer incentives and the demise of additional dealer markups. 

Our YAA Auto Experts have noted that domestic brands like GM, Ford, Chrysler most often present the best opportunity to get a deal under MSRP. 

In other words, your chances of buying a new car at or below MSRP are better now than at any time in the past 18 months. 

The longer you wait (into 2023), the more negotiation power you’ll have as the overall new car market softens. 

However, when it comes to total cost, it’s not that simple. Interest rates are rising to the highest levels in over a decade. If you wait longer to buy, there’s a real chance that the cost of financing may rise to the point where your monthly payments end up higher due to interest. Here’s the latest on car loan interest rates. 

Wouldn’t it be nice to finance your car with someone you trust? Finance with YAA! We work with trusted credit unions offering low rates and great customer service. Learn more and get pre-approved in minutes!

The average transaction price (ATP) of new cars has hovered around $48,000 for months. The latest data shows it continues to remain at that level. How could we possibly advocate for negotiating lower prices? The data shows that luxury car shoppers continue to buy, and that has been driving up the overall market average. Deals are out there, if you know where to look.

Average transaction prices for new cars, 2012-2022. Source: Cox Automotive

With market conditions always changing, we believe that knowledge is power. YAA’s Auto Experts are just one of the great benefits of YAA Membership. Learn more about our plans. How much money can you save? Read YAA member success stories!

Historical Norms: When Is the Best Time of the Year to Buy a Car?

Pre-pandemic data from Edmunds shows that the time around Labor Day is when most new car incentives begin, with discounts growing as the year comes to an end. Better deals continue on outgoing model years through fall and winter as new models compete with outgoing model years for space on dealer lots.

Many automakers roll out the new model year by September. If you’re okay with the outgoing model year, you have significantly more leverage to negotiate prices down. Don’t show up to the dealership expecting thousands of dollars off of the brand-new model year unless demand for new cars falls off a cliff (as it did in 2020). 

Negotiate like a PRO with this free dealership cheat sheet. Don’t buy a car without it!

Year-end car deals most often arrive as manufacturer incentives (which we keep track of every month). New car incentives were at historic lows during the worst of the chip shortage, but they’re slowly coming back as recession fears hit demand.

Here’s how current model-year savings compare with new model-year cars. Remember, these were the historic norms, and the situation in 2022-2023 has changed dramatically. 

In pre-pandemic times, this graph shows that new car incentives increased at the end of the year. This is still true, but to a lesser extent as inventory remains lower. Source: Edmunds.com via Market Watch.

Stay On Top of Market Conditions

Would you have guessed that used car prices have fallen nearly 14% at wholesale markets since last summer? Probably not, because it wasn’t until September that car prices dropped at the retail level. The car market is changing as automakers slowly come out of the semiconductor chip shortage, and consumers hold back on spending as recession fears circulate.

Here’s the bottom line: rapidly-changing car market conditions are likely to overshadow the seasonal trends that we’ve seen historically in pre-COVID times.

After 18 months of price increases, used car prices are dropping. Even if sticker prices are nearly the same, at YAA, we’ve had more members scoring deals under the advertised price. That’s why we think you should negotiate 5-10% off of a car purchase today. 

On the new car front, negotiation leverage depends on three main factors: 1) vehicle supply, 2) local dealer inventory and 2) demand for the specific model and trim. 

See the latest new car inventory numbers here.

For example, our YAA auto experts joke that everyone wants a Toyota RAV4 Prime right now. Demand is through the roof, Toyota is hardly producing any, and therefore prices for the RAV4 Prime remain insanely high. 

On the other hand, some new car models have more inventory than at any time in the past year. New car inventory isn’t on par with pre-pandemic levels, but it’s an improvement. Pair that with reduced demand, and new cars are finally becoming more negotiable. Dealer markups do exist for popular models, but you CAN negotiate pricing on new cars again.

YAA Car Search – Search new and used car listings with industry insights dealers don’t want you to see!

There’s a New Way to Buy, Sell and Own a Car

Would a live 1:1 coach make car buying less of a hassle? What about exclusive savings on financing, insurance, maintenance and more? Consider joining YAA+, the membership that pays for itself!

Source: https://news.google.com/__i/rss/rd/articles/CBMiNmh0dHBzOi8vam9pbnlhYS5jb20vZ3VpZGVzL3RoZS1iZXN0LXRpbWUtdG8tYnV5LWEtY2FyL9IBAA?oc=5

Did you know that new car incentives are 40% higher during one particular time of the year? Or that used car prices are more negotiable now than at any point in 2022? It’s amazing how much money you can save with a bit of knowledge that car dealers don’t want to share. At YAA, we strive to make car buying and ownership easier, less expensive, and simply a better experience. Helping the consumer save money is what drives us. In this guide, we’ll go over the best time of the year for buying a car. If you’re determined to spend less on your next set of wheels, we think you’ll find this information valuable.

The Best Time to Buy a Car Has Changed

As manufacturer incentives plummet, car buyers are looking for other ways to save.

Average new car transaction price (orange) versus average incentive spend as % of transaction price (blue). Source: Cox Automotive

The demand for new and used cars continues to outpace supply as automakers have a really hard time increasing production. Global supply shortages have affected car makers on every continent. However, the situation for car buyers is improving in late 2022. After almost two years of ridiculous prices, deals can finally be negotiated. 

The best time of the year to buy a car has changed. Pre-pandemic monthly trends may return someday (if automakers ever get back to normal inventory levels), but let’s talk about where things stand in 2022 and early 2023.

Wait a Few Months For the Best Deal

In late 2022 and early 2023, new and used car prices are dropping. This is not a normal time for car price trends. Price declines are more pronounced in the used car market, but select new models are negotiable too. 

Let’s cut to the chase:

The best time to buy a car lies in the months ahead. Deals can be negotiated today, but your leverage for lower prices will increase in December and in early 2023. 

The last week of the year is usually the best time to buy a car. Incentives and negotiation leverage improve as dealers hurry to move the last of the previous model year off of their lots. 

Let’s talk about the used car market. Wholesale price declines are finally translating to lower used car prices (more on that here). This was confirmed by the November Consumer Price Index (CPI) report that showed used car prices were down -2.4% month-to-month when seasonally adjusted. New car prices remained nearly flat at +0.4%, the smallest new car price increase in 2022. 

In 2022 (green), used car prices have fallen after record highs in 2021.

We track used car prices weekly. See this week’s used car price update.

New car prices are softening, despite automakers steadily raising MSRPs. Don’t expect widespread MSRP drops anytime soon. However, there lies hope in the slow return of manufacturer incentives and the demise of additional dealer markups. 

Our YAA Auto Experts have noted that domestic brands like GM, Ford, Chrysler most often present the best opportunity to get a deal under MSRP. 

In other words, your chances of buying a new car at or below MSRP are better now than at any time in the past 18 months. 

The longer you wait (into 2023), the more negotiation power you’ll have as the overall new car market softens. 

However, when it comes to total cost, it’s not that simple. Interest rates are rising to the highest levels in over a decade. If you wait longer to buy, there’s a real chance that the cost of financing may rise to the point where your monthly payments end up higher due to interest. Here’s the latest on car loan interest rates. 

Wouldn’t it be nice to finance your car with someone you trust? Finance with YAA! We work with trusted credit unions offering low rates and great customer service. Learn more and get pre-approved in minutes!

The average transaction price (ATP) of new cars has hovered around $48,000 for months. The latest data shows it continues to remain at that level. How could we possibly advocate for negotiating lower prices? The data shows that luxury car shoppers continue to buy, and that has been driving up the overall market average. Deals are out there, if you know where to look.

Average transaction prices for new cars, 2012-2022. Source: Cox Automotive

With market conditions always changing, we believe that knowledge is power. YAA’s Auto Experts are just one of the great benefits of YAA Membership. Learn more about our plans. How much money can you save? Read YAA member success stories!

Historical Norms: When Is the Best Time of the Year to Buy a Car?

Pre-pandemic data from Edmunds shows that the time around Labor Day is when most new car incentives begin, with discounts growing as the year comes to an end. Better deals continue on outgoing model years through fall and winter as new models compete with outgoing model years for space on dealer lots.

Many automakers roll out the new model year by September. If you’re okay with the outgoing model year, you have significantly more leverage to negotiate prices down. Don’t show up to the dealership expecting thousands of dollars off of the brand-new model year unless demand for new cars falls off a cliff (as it did in 2020). 

Negotiate like a PRO with this free dealership cheat sheet. Don’t buy a car without it!

Year-end car deals most often arrive as manufacturer incentives (which we keep track of every month). New car incentives were at historic lows during the worst of the chip shortage, but they’re slowly coming back as recession fears hit demand.

Here’s how current model-year savings compare with new model-year cars. Remember, these were the historic norms, and the situation in 2022-2023 has changed dramatically. 

In pre-pandemic times, this graph shows that new car incentives increased at the end of the year. This is still true, but to a lesser extent as inventory remains lower. Source: Edmunds.com via Market Watch.

Stay On Top of Market Conditions

Would you have guessed that used car prices have fallen nearly 14% at wholesale markets since last summer? Probably not, because it wasn’t until September that car prices dropped at the retail level. The car market is changing as automakers slowly come out of the semiconductor chip shortage, and consumers hold back on spending as recession fears circulate.

Here’s the bottom line: rapidly-changing car market conditions are likely to overshadow the seasonal trends that we’ve seen historically in pre-COVID times.

After 18 months of price increases, used car prices are dropping. Even if sticker prices are nearly the same, at YAA, we’ve had more members scoring deals under the advertised price. That’s why we think you should negotiate 5-10% off of a car purchase today. 

On the new car front, negotiation leverage depends on three main factors: 1) vehicle supply, 2) local dealer inventory and 2) demand for the specific model and trim. 

See the latest new car inventory numbers here.

For example, our YAA auto experts joke that everyone wants a Toyota RAV4 Prime right now. Demand is through the roof, Toyota is hardly producing any, and therefore prices for the RAV4 Prime remain insanely high. 

On the other hand, some new car models have more inventory than at any time in the past year. New car inventory isn’t on par with pre-pandemic levels, but it’s an improvement. Pair that with reduced demand, and new cars are finally becoming more negotiable. Dealer markups do exist for popular models, but you CAN negotiate pricing on new cars again.

YAA Car Search – Search new and used car listings with industry insights dealers don’t want you to see!

There’s a New Way to Buy, Sell and Own a Car

Would a live 1:1 coach make car buying less of a hassle? What about exclusive savings on financing, insurance, maintenance and more? Consider joining YAA+, the membership that pays for itself!

Source: https://news.google.com/__i/rss/rd/articles/CBMiNmh0dHBzOi8vam9pbnlhYS5jb20vZ3VpZGVzL3RoZS1iZXN0LXRpbWUtdG8tYnV5LWEtY2FyL9IBAA?oc=5

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.

Purchasing and owning a car is expensive, making it a large 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. Likewise, the average listing price for a used car broke record-highs at $26,971. And the prices keep climbing every month, making it more difficult to determine when’s a good time to buy a car.

Because of everyone’s unique financial situation, the best time to buy a car varies. There are two factors that help determine when to pull the trigger and which vehicles fall within your price range: affordability and your budget. While there are peak seasons and discounted holidays for car sales, it’s best to purchase a car when you find a deal within your means and one you can comfortably afford.

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

Buying a New Car: Patience Is the Name of the Game

Spending time researching is essential to a successful car purchase. Do your due diligence on local car dealerships to scout out their inventory and learn what incentives they might offer to prospective customers.

Absorb everything you can about your desired vehicles—year, make and model, sticker price, financing options, standard features, manufacturer rebates, transportation costs and even color options. In addition to timing the purchase right, being informed increases your chances of landing a better deal.

Dealerships’ Inventory Cycles

The Covid-19 pandemic has made car prices volatile and the supply of vehicles unpredictable. Still, developing a working knowledge of how car dealers manage their inventory remains a reliable way to get a good deal. There is a strong correlation between the supply of new cars hitting the market and the drop in the price of the previous model.

If your goal is to buy a new vehicle at the best price possible, an ideal time would be toward the end of the year—typically between summer and winter months—when dealers are clearing their lots of unsold cars to make room for the following year’s models. Any unsold new vehicles are discounted during that period to pull in more business, meaning an opportunity for you to snag a new car at a below-market rate.

Identifying a Dealership’s Aged Inventory

It is also worth checking out if the cars on your shortlist have gathered dust on the respective dealer’s lot for a while.

Aged inventory, while a broad business term, in this case refers to cars that have remained unsold that the dealer is willing to slash the sticker price significantly to make a sale. If you are able to identify which car models are in that category before visiting the dealership, you’ll gain negotiating power.

Online tools, such as CARFAX and Autotrader, show you exactly when a particular vehicle was listed for sale and how long it’s been on the dealer’s lot. You can use this information to help determine the best time to buy a car.

Black Friday Deals

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, meaning there could be markdowns if you want a new or certified pre-owned vehicle.

These deals run the gamut from discounted car prices to financing assistance, zero percent introductory rates on loans, or additional vehicle entertainment and safety features.

Shop Around for Manufacturers Incentives

In addition to keeping an eye out for dealer promotions, the car manufacturers themselves typically offer a mix of one-time and recurring incentives that might apply to you:

• Rebates or cash back. Buyers get new-car rebates from the manufacturer through the dealer. This is also known as a purchase allowance, cash back or bonus cash. They are short-term promotions that are usually anchored around a holiday period. These deals are not the same across manufacturers or locations, and tend to have eligibility requirements.
• Low or no-interest financing. Some dealers offer auto loans at a very low or 0% introductory rate for a period of time—usually between 60 and 72 months—which can save you hundreds of dollars on interest. Manufacturers usually require that you have a strong credit rating and borrow the money from their financing company to qualify for the promotional interest rate.

Related: Find New Cars For Sale Near You

Featured Partner Offers

Loan amount

Starts at $7,500 (no max)

Buying a Used Car: Act Fast

If you are ready to purchase, prequalified for financing and have spotted a used car that suits your needs, do not wait. Used cars stay on the lot for 34 days, on average, according to Cars.com, which is shorter than previous years. This is especially true for recent models in good condition with no wear and tear.

If owning a car is critical to your daily life, being patient is not a luxury you can afford. If anything, do your planning ahead of time so when the time comes, you have already done the legwork in terms of research and other preparatory steps. This will put you in a position to identify bargains faster and act quickly, which may save you thousands of dollars.

Related: Find Used Cars For Sale Near You

Compare Rates and Save on Your Auto Loan

Get up to 4 loan offers in minutes at myAutoloan.com.

Source: https://news.google.com/__i/rss/rd/articles/CBMiQWh0dHBzOi8vd3d3LmZvcmJlcy5jb20vYWR2aXNvci9hdXRvLWxvYW5zL2Jlc3QtdGltZS10by1idXktYS1jYXIv0gEA?oc=5

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.

Purchasing and owning a car is expensive, making it a large 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. Likewise, the average listing price for a used car broke record-highs at $26,971. And the prices keep climbing every month, making it more difficult to determine when’s a good time to buy a car.

Because of everyone’s unique financial situation, the best time to buy a car varies. There are two factors that help determine when to pull the trigger and which vehicles fall within your price range: affordability and your budget. While there are peak seasons and discounted holidays for car sales, it’s best to purchase a car when you find a deal within your means and one you can comfortably afford.

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

Buying a New Car: Patience Is the Name of the Game

Spending time researching is essential to a successful car purchase. Do your due diligence on local car dealerships to scout out their inventory and learn what incentives they might offer to prospective customers.

Absorb everything you can about your desired vehicles—year, make and model, sticker price, financing options, standard features, manufacturer rebates, transportation costs and even color options. In addition to timing the purchase right, being informed increases your chances of landing a better deal.

Dealerships’ Inventory Cycles

The Covid-19 pandemic has made car prices volatile and the supply of vehicles unpredictable. Still, developing a working knowledge of how car dealers manage their inventory remains a reliable way to get a good deal. There is a strong correlation between the supply of new cars hitting the market and the drop in the price of the previous model.

If your goal is to buy a new vehicle at the best price possible, an ideal time would be toward the end of the year—typically between summer and winter months—when dealers are clearing their lots of unsold cars to make room for the following year’s models. Any unsold new vehicles are discounted during that period to pull in more business, meaning an opportunity for you to snag a new car at a below-market rate.

Identifying a Dealership’s Aged Inventory

It is also worth checking out if the cars on your shortlist have gathered dust on the respective dealer’s lot for a while.

Aged inventory, while a broad business term, in this case refers to cars that have remained unsold that the dealer is willing to slash the sticker price significantly to make a sale. If you are able to identify which car models are in that category before visiting the dealership, you’ll gain negotiating power.

Online tools, such as CARFAX and Autotrader, show you exactly when a particular vehicle was listed for sale and how long it’s been on the dealer’s lot. You can use this information to help determine the best time to buy a car.

Black Friday Deals

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, meaning there could be markdowns if you want a new or certified pre-owned vehicle.

These deals run the gamut from discounted car prices to financing assistance, zero percent introductory rates on loans, or additional vehicle entertainment and safety features.

Shop Around for Manufacturers Incentives

In addition to keeping an eye out for dealer promotions, the car manufacturers themselves typically offer a mix of one-time and recurring incentives that might apply to you:

• Rebates or cash back. Buyers get new-car rebates from the manufacturer through the dealer. This is also known as a purchase allowance, cash back or bonus cash. They are short-term promotions that are usually anchored around a holiday period. These deals are not the same across manufacturers or locations, and tend to have eligibility requirements.
• Low or no-interest financing. Some dealers offer auto loans at a very low or 0% introductory rate for a period of time—usually between 60 and 72 months—which can save you hundreds of dollars on interest. Manufacturers usually require that you have a strong credit rating and borrow the money from their financing company to qualify for the promotional interest rate.

Related: Find New Cars For Sale Near You

Featured Partner Offers

Loan amount

Starts at $7,500 (no max)

Buying a Used Car: Act Fast

If you are ready to purchase, prequalified for financing and have spotted a used car that suits your needs, do not wait. Used cars stay on the lot for 34 days, on average, according to Cars.com, which is shorter than previous years. This is especially true for recent models in good condition with no wear and tear.

If owning a car is critical to your daily life, being patient is not a luxury you can afford. If anything, do your planning ahead of time so when the time comes, you have already done the legwork in terms of research and other preparatory steps. This will put you in a position to identify bargains faster and act quickly, which may save you thousands of dollars.

Related: Find Used Cars For Sale Near You

Compare Rates and Save on Your Auto Loan

Get up to 4 loan offers in minutes at myAutoloan.com.

Source: https://news.google.com/__i/rss/rd/articles/CBMiQWh0dHBzOi8vd3d3LmZvcmJlcy5jb20vYWR2aXNvci9hdXRvLWxvYW5zL2Jlc3QtdGltZS10by1idXktYS1jYXIv0gEA?oc=5

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.

Purchasing and owning a car is expensive, making it a large 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. Likewise, the average listing price for a used car broke record-highs at $26,971. And the prices keep climbing every month, making it more difficult to determine when’s a good time to buy a car.

Because of everyone’s unique financial situation, the best time to buy a car varies. There are two factors that help determine when to pull the trigger and which vehicles fall within your price range: affordability and your budget. While there are peak seasons and discounted holidays for car sales, it’s best to purchase a car when you find a deal within your means and one you can comfortably afford.

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

Buying a New Car: Patience Is the Name of the Game

Spending time researching is essential to a successful car purchase. Do your due diligence on local car dealerships to scout out their inventory and learn what incentives they might offer to prospective customers.

Absorb everything you can about your desired vehicles—year, make and model, sticker price, financing options, standard features, manufacturer rebates, transportation costs and even color options. In addition to timing the purchase right, being informed increases your chances of landing a better deal.

Dealerships’ Inventory Cycles

The Covid-19 pandemic has made car prices volatile and the supply of vehicles unpredictable. Still, developing a working knowledge of how car dealers manage their inventory remains a reliable way to get a good deal. There is a strong correlation between the supply of new cars hitting the market and the drop in the price of the previous model.

If your goal is to buy a new vehicle at the best price possible, an ideal time would be toward the end of the year—typically between summer and winter months—when dealers are clearing their lots of unsold cars to make room for the following year’s models. Any unsold new vehicles are discounted during that period to pull in more business, meaning an opportunity for you to snag a new car at a below-market rate.

Identifying a Dealership’s Aged Inventory

It is also worth checking out if the cars on your shortlist have gathered dust on the respective dealer’s lot for a while.

Aged inventory, while a broad business term, in this case refers to cars that have remained unsold that the dealer is willing to slash the sticker price significantly to make a sale. If you are able to identify which car models are in that category before visiting the dealership, you’ll gain negotiating power.

Online tools, such as CARFAX and Autotrader, show you exactly when a particular vehicle was listed for sale and how long it’s been on the dealer’s lot. You can use this information to help determine the best time to buy a car.

Black Friday Deals

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, meaning there could be markdowns if you want a new or certified pre-owned vehicle.

These deals run the gamut from discounted car prices to financing assistance, zero percent introductory rates on loans, or additional vehicle entertainment and safety features.

Shop Around for Manufacturers Incentives

In addition to keeping an eye out for dealer promotions, the car manufacturers themselves typically offer a mix of one-time and recurring incentives that might apply to you:

• Rebates or cash back. Buyers get new-car rebates from the manufacturer through the dealer. This is also known as a purchase allowance, cash back or bonus cash. They are short-term promotions that are usually anchored around a holiday period. These deals are not the same across manufacturers or locations, and tend to have eligibility requirements.
• Low or no-interest financing. Some dealers offer auto loans at a very low or 0% introductory rate for a period of time—usually between 60 and 72 months—which can save you hundreds of dollars on interest. Manufacturers usually require that you have a strong credit rating and borrow the money from their financing company to qualify for the promotional interest rate.

Related: Find New Cars For Sale Near You

Featured Partner Offers

Loan amount

Starts at $7,500 (no max)

Buying a Used Car: Act Fast

If you are ready to purchase, prequalified for financing and have spotted a used car that suits your needs, do not wait. Used cars stay on the lot for 34 days, on average, according to Cars.com, which is shorter than previous years. This is especially true for recent models in good condition with no wear and tear.

If owning a car is critical to your daily life, being patient is not a luxury you can afford. If anything, do your planning ahead of time so when the time comes, you have already done the legwork in terms of research and other preparatory steps. This will put you in a position to identify bargains faster and act quickly, which may save you thousands of dollars.

Related: Find Used Cars For Sale Near You

Compare Rates and Save on Your Auto Loan

Get up to 4 loan offers in minutes at myAutoloan.com.

Source: https://news.google.com/__i/rss/rd/articles/CBMiQWh0dHBzOi8vd3d3LmZvcmJlcy5jb20vYWR2aXNvci9hdXRvLWxvYW5zL2Jlc3QtdGltZS10by1idXktYS1jYXIv0gEA?oc=5

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.

Purchasing and owning a car is expensive, making it a large 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. Likewise, the average listing price for a used car broke record-highs at $26,971. And the prices keep climbing every month, making it more difficult to determine when’s a good time to buy a car.

Because of everyone’s unique financial situation, the best time to buy a car varies. There are two factors that help determine when to pull the trigger and which vehicles fall within your price range: affordability and your budget. While there are peak seasons and discounted holidays for car sales, it’s best to purchase a car when you find a deal within your means and one you can comfortably afford.

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

Buying a New Car: Patience Is the Name of the Game

Spending time researching is essential to a successful car purchase. Do your due diligence on local car dealerships to scout out their inventory and learn what incentives they might offer to prospective customers.

Absorb everything you can about your desired vehicles—year, make and model, sticker price, financing options, standard features, manufacturer rebates, transportation costs and even color options. In addition to timing the purchase right, being informed increases your chances of landing a better deal.

Dealerships’ Inventory Cycles

The Covid-19 pandemic has made car prices volatile and the supply of vehicles unpredictable. Still, developing a working knowledge of how car dealers manage their inventory remains a reliable way to get a good deal. There is a strong correlation between the supply of new cars hitting the market and the drop in the price of the previous model.

If your goal is to buy a new vehicle at the best price possible, an ideal time would be toward the end of the year—typically between summer and winter months—when dealers are clearing their lots of unsold cars to make room for the following year’s models. Any unsold new vehicles are discounted during that period to pull in more business, meaning an opportunity for you to snag a new car at a below-market rate.

Identifying a Dealership’s Aged Inventory

It is also worth checking out if the cars on your shortlist have gathered dust on the respective dealer’s lot for a while.

Aged inventory, while a broad business term, in this case refers to cars that have remained unsold that the dealer is willing to slash the sticker price significantly to make a sale. If you are able to identify which car models are in that category before visiting the dealership, you’ll gain negotiating power.

Online tools, such as CARFAX and Autotrader, show you exactly when a particular vehicle was listed for sale and how long it’s been on the dealer’s lot. You can use this information to help determine the best time to buy a car.

Black Friday Deals

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, meaning there could be markdowns if you want a new or certified pre-owned vehicle.

These deals run the gamut from discounted car prices to financing assistance, zero percent introductory rates on loans, or additional vehicle entertainment and safety features.

Shop Around for Manufacturers Incentives

In addition to keeping an eye out for dealer promotions, the car manufacturers themselves typically offer a mix of one-time and recurring incentives that might apply to you:

• Rebates or cash back. Buyers get new-car rebates from the manufacturer through the dealer. This is also known as a purchase allowance, cash back or bonus cash. They are short-term promotions that are usually anchored around a holiday period. These deals are not the same across manufacturers or locations, and tend to have eligibility requirements.
• Low or no-interest financing. Some dealers offer auto loans at a very low or 0% introductory rate for a period of time—usually between 60 and 72 months—which can save you hundreds of dollars on interest. Manufacturers usually require that you have a strong credit rating and borrow the money from their financing company to qualify for the promotional interest rate.

Related: Find New Cars For Sale Near You

Featured Partner Offers

Loan amount

Starts at $7,500 (no max)

Buying a Used Car: Act Fast

If you are ready to purchase, prequalified for financing and have spotted a used car that suits your needs, do not wait. Used cars stay on the lot for 34 days, on average, according to Cars.com, which is shorter than previous years. This is especially true for recent models in good condition with no wear and tear.

If owning a car is critical to your daily life, being patient is not a luxury you can afford. If anything, do your planning ahead of time so when the time comes, you have already done the legwork in terms of research and other preparatory steps. This will put you in a position to identify bargains faster and act quickly, which may save you thousands of dollars.

Related: Find Used Cars For Sale Near You

Compare Rates and Save on Your Auto Loan

Get up to 4 loan offers in minutes at myAutoloan.com.

Source: https://news.google.com/__i/rss/rd/articles/CBMiQWh0dHBzOi8vd3d3LmZvcmJlcy5jb20vYWR2aXNvci9hdXRvLWxvYW5zL2Jlc3QtdGltZS10by1idXktYS1jYXIv0gEA?oc=5