Buying new cars is a big deal: The average Canadian spends about 21% of their monthly salary on housing and will spend 20% of said income again should they wish to drive new cars, not including car insurance.
So, when is the best time to buy a new car? That’s what everyone should know before laying down their hard-earned money.
If you have decided to buy a new or like-new used car, you are probably excited. Knowing that soon you will be driving your adorable children to soccer games (and flute practice and play dates and, well, you know the drill) in a new car that has amazing safety features can make you feel warm, confident, and professional all at the same time.
But do not allow your excitement to turn into an impulse buy. Walk into the car dealership of your choice at a time when you are most likely to get a great deal, instead.
Here’s what you need to know to get the best deals available.
The end of the year is the best time to buy a new car
The jury is in, and it says that the end of the year is the best time to buy a new car. Manufacturers are looking to introduce the next year’s models and build some hype around their launch release them in the fall and winter.
Try to time your purchase in one of these months:
This is the perfect opportunity to maximize your savings, so take advantage!
But when is the best time to buy a new car within those months? November and December are the winners. These two months are when car sales really begin to slow down, yet every dealership’s salespeople are trying to push more sales than ever.
This is what’s happening in November and December:
- Dealerships try to sell off last year’s models
- More people stay in due to the cold, flu season, and fewer hours of daylight
- The entire auto industry has to compete with holiday gift shopping
- Dealerships have to play along with Black Friday promotions
The end of the year is going to produce the greatest savings when purchasing a new car, but there are other options if you can’t wait that long.
The last hours of the last day of the month
Your friendly neighbourhood sales representative likely has monthly sales quotas that they work hard to meet. Their performance influences commissions and sales bonuses, which means that your chances of snagging a great price on your car purchase are higher near the end of the month than at, say, an average Tuesday in the middle of the month.
Choose to walk into a dealership when the salespeople are willing to drop the price further.
But when is the best time to buy a new car on the last day of the month? Like most of us, the people who sell cars experience a greater sense of urgency to complete their work in a timely way as the end of their day approaches. Walk in after work or closer to the end of the day.
The end of the fiscal quarter
The four fiscal quarters for Canadian businesses usually end in March, June, September, and December, which means that car dealerships are particularly focused on meeting sales goals as these months draw to a close, and new automobiles leave lots at a faster pace.
It’s best to wait until the end of the year, but at least wait until the end of the fiscal quarter to get some savings if you can’t put off buying until November.
Not all about endings
When is the best time to buy a new car outside of the end of the year or the end of the quarter? You can focus on sales during holidays and long weekends to get some extra bang for your buck throughout the rest of the year. Car manufacturers often offer monthly special offers, such as:
- Bonus cash
- Low-interest financing deals
- Desirable safety feature at no extra cost
- Delayed payments
- Extended warranties
Should you coordinate your purchase with the launch of a monthly special offer, you’ll probably find a dealership that is enthusiastically promoting their new deals to attract more sales.
Last year’s model is always cost-effective
Should you be willing to forego any snazzy advancements that may be part of the new version of the car you covet, you could snap up a model from last year that’s still hanging around on the lot when the new models roll in stylishly during the fall.
Long weekends can prove to be some of the best times to buy a new car, too. Automakers carefully plan their annual marketing schedule for car sales, and usually offer special deals to coincide with holiday weekends like Canada Day, Thanksgiving, Family Day, and so on. It may be worth carving out a few hours on a precious long weekend to take advantage of a worthy deal on the car that you know you want.
Don’t forget about your car insurance
New cars can bring us a sense of security, especially when we choose safety features like automatic brake systems (ABS) that can get us a discount on our car insurance.
Before you head out to speak to your car sales representative, get a 3-minute quote with the new car you want to see how much insurance will cost for it!