You're about to leave our secure website.
You are about to navigate away from our secure website. We are not responsible for any content or information posted to third-party sites.
Online Banking
You are about to navigate away from our secure website. We are not responsible for any content or information posted to third-party sites.
We’ve all seen the commercials – on Christmas day, a wife opens her presents to find a shiny car key inside.
Do people really give cars as gifts for the holidays? Is that a smart thing to do? And is there even a right time of year to buy a vehicle? We look at when a vehicle purchase does (and doesn’t) make sense.
We’ve all seen the commercials: On Christmas Day, a wife opens her presents to find a shiny car key inside. She runs outside to discover a beautiful new vehicle sitting in the driveway with a bright red bow on it against a snowy backdrop
This may seem like a great gift for your significant other, but is it a wise financial decision to purchase a car around the holidays? Does it matter what time of year you buy a car? Below we take a look at some of the factors you might want to consider when timing your vehicle purchase.
First up, it turns out there are some incentives to buying a car during the holiday season other than impressing your loved one.
According to the data, the best month to go car shopping is, in fact, December due to end-of-year sales and incentives. Shopping at the very end of December or the first day of January can save you upwards of 8% off the MSRP, according to TrueCar.com.
The end of the calendar year also corresponds to the end of the yearly sales period, so many car dealerships and salespeople are eager to meet their sales goals. This may mean that they are willing to offer you packages with additional perks that include free oil changes, car washes, or discounts on accessories to seal the deal.
If you wait too long into January, though, discounts drop off by the end of the first week (and giant red bows get harder to find). If you want to shop the sales, be sure to plan ahead.
If you’re reading this at a time that is nowhere near December and you need a new car, don’t fret. Car deals happen fairly predictably throughout the year.
Both individual car salesmen and dealerships have monthly and quarterly sales quotas to meet. The quarterly figures are the big ones, so heading to the dealership near the end of March, June, or September can often help you find great deals.
If you can’t wait until the end of the next quarter, the end of the month is the next best thing. There’s often a scramble among associates on the showroom floor to wrap up sales and get their picture on the “Salesperson of the Month” wall.
What if you have at least some flexibility as to when you buy a new car? While it’s tempting to have a new ride for the summer, it might pay you to wait until the Fall.
This is because shopping near the end of the model year can get you discounts on outgoing models. In the fall, new models of cars debut on the market, making last year’s vehicles old news and ripe for discounts.
Many car dealerships will be eager to get old models off the lot to make room for the incoming ones. This means you can access great discounts on MSRP, low APR financing, and great incentives for helping take those vehicles off the dealers’ hands.
If you’re ready to brave the crowds, Presidents Day, Memorial Day, the Fourth of July, Labor Day, and Black Friday come with piles of reliable deals on cars. Car shoppers who can hold off on closing until the next holiday weekend may allow you to take advantage of perks and significant savings.
Seasonal factors aside, is there a best day of the week to shop for a car? Car dealerships traditionally do much of their business over weekends, but it turns out if you are after discounts it might serve you well to take some time off on a weekday to go car shopping.
Research by TrueCar shows car buyers win higher MSRP discounts during the week, and markdowns peak on Mondays. Why? Most likely, sales associates have more time on their hands to haggle with individual buyers to close a deal, rather than moving on to the next group kicking the floor model’s tires.
That said, salespeople know that you know about seasonal discounts. If the end of December or the end of a sales quarter is nearing, you may feel under pressure to commit to purchasing a vehicle to obtain the best deal.
To avoid this pressure, remember there will always be another end-of-quarter coming up, and getting the right car for your needs is more important than getting a discount on the wrong vehicle. That said, it’s a good idea to start shopping before your ideal purchase time.
For example, if you know you’d like to close a deal on a car at the end of December, start test driving, apply for loans, and compare makes and models early in the month. Give yourself ample time to research your options, so you don’t end up swayed by incentives, discounts, add-ons, or free hot cocoa.
No matter what sales, incentives, or cash-back options are being offered, one of the most consistent ways you can get a good deal on a car is to start shopping early and get preapproved for a car loan before you head to the dealer.
Finding out the best APR you can obtain on your ideal loan and getting pre-approved for a loan not only helps you stay grounded amidst the shiny chrome, sales signs, and special offers but also gives you even more bargaining power when it comes time to purchase.
You can start by checking out the competitive auto loans that Baton Rouge Telco offers our members. Whether you are looking to buy a used car or a new vehicle, we’re here to help get you rolling with:
Contact us today to discuss your car financing needs, or click below to learn more about our auto loans.
Federally insured by NCUA. Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government – National Credit Union Administration (NCUA), a U.S. Government Agency.
