Black Friday

6 Year-End Car Buying Tips

December 28, 2019 by admin Leave a Comment

2019 Volvo V60

The best opportunities to purchase a new vehicle is during a manufacturer’s transition times, including model changeover, the end of a generational build, and as the calendar moves from December to January. The following six tips can save you money, enabling you to drive off in a new ride with your budget intact.

1. End of Model Year

Car manufacturers used to make the model year transition in October, by updating its full product line across the board. All-new models were timed to release in the fall, putting big pressure on manufacturers to get cars to dealers in time for seasonal advertising campaigns.

These days, new models come out throughout the year, allowing manufacturers to stagger releases. When a new model debuts, manufacturers typically place incentives on previous model year vehicles to help clear dealer inventories. Consumers should learn when the transition is being made and follow the manufacturer’s website to discover what incentives — including rebates and special financing – are in place.

2. Old Design Versus New Design

Car manufacturers usually keep a model for five or six years before a complete redesign is made. In the interim, minor annual refreshes are made along with a mid-product-cycle update that is typically accomplished by the fourth year.

A complete design change signifies a generation shift. Older vehicles are routinely discounted as manufacturers seek to clear out inventory. Discounts may be deeper than with the traditional model year change-over as automakers begin to promote the new model that will cost consumers close to the sticker price.

The all-new Jeep Gladiator (l) and the Jeep Wrangler (r).

3. Black Friday Shopping

There are times during the year when car dealers see a plunge in showroom traffic. One of those days is the Friday after Thanksgiving, the traditional start of the Christmas shopping season. It is called Black Friday, what used to mark the day when merchants began to make a profit for the year, which is represented by going from red ink to black ink on financial statements.

Black Friday has another meaning for car dealers: a dearth of car-buying customers. With fewer customers in dealer showrooms throughout Thanksgiving weekend and with the month about to close, consumers may find dealers are eager to negotiate to meet their quotas. Meeting those quotas means receiving more money from manufacturers for reaching their sales goals, something that would not happen if consumers stayed busy buying Christmas presents, not new cars.

4. From Christmas to the New Year

Just as Black Friday may present a special opportunity to strike a deal, the period between Christmas and the New Year can also be a good time to negotiate a new vehicle purchase. Such deals may last a few days into the new year as dealers and manufacturers will close their books no later than Jan. 4.

Car manufacturers are obsessed with market share and use these sales numbers for marketing promotion. As the year fades, automakers know which models or brands stand the chance of finishing on top and may promote these accordingly. For example, Mercedes-Benz, BMW, and Lexus have an annual battle for luxury vehicle leadership. Year-end discounting usually begins in Nov. and lasts until early Jan. You’ll also find financing and leasing deals.

5. Arranging Your Own Financing

You are in a much better negotiating position when buying a new car if you offer a 100-percent cash (all-cash) transaction. However, most of us cannot afford a heavy cash outlay, instead, we rely on loan financing or a lease to swing our deals. Car dealers offer financing, usually through the manufacturer’s financing arm as well as from banks.

Often, new cars come with incentives allowing buyers to choose between cashback or a low-rate loan. You can also arrange your own financing before you shop for a car. In this case, when you’re ready to buy, give the dealer your loan information and ask to have the rebate applied to your total. Credit unions typically offer the lowest financing rates, making it worth your while to come in with your own loan and take the rebate.

6. Rebates and Dealer Incentives

We already looked at rebates and financing, but there are other rebates available to consumers. Manufacturers like to woo customers with various enticements, but these special offers are generally not publicized. It pays to do your homework by studying the manufacturer’s website.

For example, the Toyota College Graduate Finance Program provides a $500 rebate on select Toyota models and sweetens that offer by writing loans with no money down and deferring the first payment for 90 days. Its program is open to recent college graduates, people that have secured a college degree within the past two years.

Also, the Ford Motor Company awards $500 bonus cash on most Ford and Lincoln products to active duty and recently retired military personnel and their families through its Military Appreciation program. Here, military retirees have up to 24 months after leaving service (separation) to remain eligible for the rebate.

Other manufacturers usually provide similar rebates and may also offer discounts to first responders, credit union members, suppliers, and their employees. These extra incentives are typically on top of other offers and may be applied to the purchase price of the new vehicle.

2019 Chevrolet Silverado LT

Saving Money

It isn’t that difficult to save money on your new vehicle purchase. Study the manufacturer’s website, visit local dealer sites, and keep in mind the special offers listed here when negotiating your price. It is possible to save thousands of dollars, especially on well-equipped models. Don’t allow cash offers to fall to the wayside by not having the dealer apply what’s available to you.

See Also — Care Tips for Your New Vehicle

When is the Best Time to Buy a Car?

October 28, 2019 by admin Leave a Comment

One goal millions of American consumers would like to attain before the new year arrives is to purchase a new vehicle. There are about 270 million registered passenger vehicles in the United States with an average age of 11.8 years according to IHS Markit. That’s a long time to hang on to a car and for many people getting a new one has become a high priority, especially if their current ride is experiencing significant downtime.

The months of November and December provide very good opportunities for people to purchase a new vehicle. For one, the year-end sales rush is on and brands such as Lexus, Buick, and Mazda are among those making the push right now. For another, the 2020 models have arrived and dealerships are anxious to clear lots of 2019 inventory. If you do your homework thoroughly, you can slash thousands of dollars off the sticker price of some new models before incentives are taken. Yes, this could be the best time to buy a car, SUV or pickup truck.

There is some debate among experts about the best time to buy a car. Manufacturers and dealers usually insist, “right now!” — but that isn’t always the case. With an eye on the remaining weeks of the year ahead, the following dates, days, and even times of the week may help you in your new car shopping decision.

Black Friday

The day after Thanksgiving is known as “Black Friday” or when merchants offer tantalizing deals to help kick off the Christmas shopping season. The day is so busy that stores are packed with customers from Thanksgiving evening to late Friday night.

Pity the poor new car salesperson who looks out at the traffic-choked highway and observes potential customers whose minds are locked on getting a Christmas gift deal and on nothing else. Very few customers venture to dealer lots and that omission may cost them a big bargain.

In 2013, Consumer Reports surveyed the automotive landscape just days before Thanksgiving and found that several older, but still new models had discounts ranging from 15 to 25 percent off the sticker price. For example, that means a $55,000 full-size pickup truck might retail for as low as $45,000 if buyers were aware of the incentives.

Consumer Reports noted that Black Friday could be an especially beneficial day to shop as “dealers may even sweeten the deal further to clear their lots” and the day is also close to the end of the month as “dealers are more willing to negotiate to meet their quotas.” If Black Friday isn’t the best time to buy a new car, it certainly ranks as one of the top days.

Best Days of the Week

You may think that shopping for a new car on a weekend is the ideal time to buy. However, that usually isn’t the case unless it’s the end of the month and dealers are battling to meet their sales quota. Keep in mind that there’s no way to know if the dealership has met its quota. Don’t expect the salesman to greet you as you enter the showroom by saying, “Gee, we’re really glad you stopped by today. If we make a sale, we’ll meet our monthly quota!”

Monday may be the best day of the week to buy a car as most of the business has been conducted over the previous weekend. The lower the foot traffic, the more likely you’ll have increased negotiating power. This may be even more apparent in December when people are stepping up their Christmas shopping. For instance, if you shop on the Monday following the Thanksgiving weekend — also known as Cyber Monday — you may find showrooms are nearly empty.

At Year-End

Some people think that December 31 is the best day to buy a new car, especially as the calendar year comes to a close. Although it can certainly be a good day, the first few days of the new year can be a good time to shop too. Why? Because those days are counted in the previous year’s totals.

Dealer’s work with what is known as a “U.S. Sales Reporting Calendar.” For 2019, the sales month and year cutoff are on Thursday, Jan. 2, 2020. Many dealers are open on New Year’s Day and many will remain open late on Jan. 2, in a bid to get that final sale.

Dispelling Myths

Just as there is the best time to buy a new car there are some myths about timing your purchase that should be examined and dispelled.

For instance, some people believe that shopping for a new car on a rainy or snowy day is ideal for securing a bargain. On the contrary, many dealerships are packed with people whose plans were changed because of the foul weather.

Arriving at a dealership just as your sales associate is ready to leave for the day seems like a great way to snag a deal too. After all, she may have plans and is eager to get home. Don’t be fooled: salespeople are used to working well beyond their scheduled hours in a bid to secure a deal. Besides, it is the sales manager who ultimately approves or nixes any deal.

Get Prepared

Now that you’re ready to buy a new car, visit the manufacturer’s website to identify the vehicle and trim level that interests you. Contact at least three dealerships to obtain quotes. Learn what incentives are available, which is information that is typically found on the manufacturer’s website. You can arrange to finance on your own or do so through the dealership, but with the latter choice, you may forfeit cash back in exchange for cut-rate financing.

Photo credit Pixabay.

When to Time Your New Car Purchase

November 21, 2012 by admin 1 Comment

So, you think that heading to the showroom on any given day will produce the intended result, namely the best deal possible on a new car? Well, think again. There are times of the day, weather conditions and dates on the calendar that may yield the best savings for car shoppers or at least those are some of the prevailing theories. Nevertheless, you may want to strategize your car shopping quest accordingly in a bid to save hundreds, perhaps thousands of dollars on your next new vehicle purchase.

End of the Month

Its the first of the month and you’re ready to buy a new car. Not so fast! Although a good deal on a new car can be had at any time of the month, you may find that a sales manager is more likely to cut a special deal if you buy just before the month ends. Monthly vehicle sales may be tied in with quotas that still need to be met. Meet those quotas and manufacturers will often kick in more cash back to the dealer.

Unfortunately, you wont know if the dealer is behind on quotas for the month unless you are told so. You’re taking a gamble here too the car you really want may no longer be sitting on the dealers lot, which means you’ll have to wait for your special order to be shipped weeks later.

At Year End

Come December, if not earlier, you’ll see a slew of advertisements for new cars. Lexus is one of the first to jump in, running its December to Remember sales event. Competing sales include the Mercedes-Benz Winter Event. Oddly, the M-B sales initiative ends on Nov. 30, some three weeks before the winter solstice arrives. Also, The Season of Audi Event, is currently going on, and other events will crop up over the coming weeks.

Can you save money at the end of the calendar year versus other times of the year? Yes, but that is a qualified yes. Hot sellers, for instance, wont be discounted or at least not to the extent that you might expect. If inventories are lean, your deals wont be. The best savings will come for two types of models: the last model years leftovers and vehicles that offer an older design. With the latter, you’re looking at a previous generation model the all-new design has arrived on dealer lots and the old models need to be moved out and will most likely include special manufacturer incentives.

Sweetened Deals

There are times in the year when buying a new car makes absolute sense: the manufacturer has sweetened its rebate or financing offer, improving on a previous deal. Discounts or cash incentives may be increased to reduce inventories for slower selling models. Cash incentives, for instance, are what you are given once you have negotiated your best price.
Never negotiate a deal by putting the manufacturers incentive on the table or allowing the salesperson to do that. Instead, research the price for your vehicle, negotiate your best deal, then claim the rebate.

Weather Conditions

Some consumers are under the impression that car dealers will cut a special deal with them on a rainy day. Thats a nice thought, but a wrong one at that. When you arrive on the dealers lot, a salesperson may greet you with an oversized umbrella in hand.

Now there may be an exception to this belief that should be considered: business following a severe storm that knocked out power and kept shoppers away from dealer showrooms for days on end. Dealers, with the help of manufacturers, may sweeten their offers. These one-time or short-term deals may happen following a calamity where customers lost their cars to flood waters and have insurance checks in hand to make a deal. Cash and checks talk use your loss as leverage.

Personal Advice

When would I buy a new car? At the end of the month or whenever traffic is so slow that dealers are itching to sell cars such as on Black Friday. Still, you can find a good deal at any time of the year, provided you do your research and prepare to negotiate accordingly.

See Also — Last Minute Year-End Car Buying Tips

Black Friday and New Car Deals

November 13, 2012 by admin 1 Comment

If you are planning to hit the stores the day after Thanksgiving, you may find that one type of retailer has some uncommonly good deals for your consideration. And that would be your new car dealer, an often overlooked retailer for shoppers looking for Black Friday deals at the mall. If you car shop on Black Friday you may be able to save up to 20 percent, perhaps more, off of the manufacturer’s recommended sticker price (MSRP).

Wheeling and Dealing

Why would new car dealers offer specials on Black Friday? For two reasons:

1. Traffic is typically terrible on the day after Thanksgiving and is usually down for the weekend. Without customers, dealers lose money. Those customers that make the venture to a new car dealership will find sales staff in a mood to make a deal.

2. It is the end of the month. Because Black Friday falls near the end of the month, dealers may be more willing to strike a deal to meet monthly quotas. Sales staff receive incremental bonuses for the number of new cars that they sell each month notes Kevin Ransom, writing for AOL Autos. You are in a position of strength here as the sales manager may take off additional money to close your deal.

Black Friday Car Deals

Regardless of the day or event, you will find it more difficult to get a great deal on a hot-selling new car. Expect that the best discounts will be offered on those vehicles that are less popular including models that are left over from the previous design generation.

Exceptional new car deals can be had with Consumer Reports backing up claims of hefty discounts by listing more than 20 models that offer at least a 15 percent discount. Although its list is for Black Friday 2011, this year’s list of special savings might include vehicles such as the Chevrolet Malibu, Nissan’s Versa hatchback, the Toyota Corolla and Mitsubishi’s Galant. The first three models have been redesigned or updated for 2014, while the Galant was discontinued in 2012 and is still on sale.

Best Discounts

Getting 15 to 20 percent off of the sticker price of a new car is significant. Typically, come November, new cars are discounted by an average of 6 percent. The deals get even better toward the end of the calendar year, but the temporary spike in discounts on Black Friday should be noted by new car shoppers.

One thing most new car dealers won’t do is open at 3 a.m. on Black Friday. Instead, they will likely keep regular hours, hoping that you’ll stop by on the way home from your visit to the mall.

Updated Nov. 2013 to reflect current information.