CAR BUYING

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.

MTV Says: Millennials Love Their Cars!

January 26, 2015 by admin 1 Comment

Immediately following the Washington Auto Show — where some policy makers insist that young people are getting their licenses later and driving less than their counterparts of even 50 years ago — a study conducted on behalf of MTV strongly suggests otherwise.

Indeed, the “Millennials Have Drive” research study — released last week at the National Automobile Dealers Association (NADA) Convention and Expo 2015 in San Francisco— shows that young people are eager to drive. Moreover, they are placing driving ahead of such mainstays as social media and texting.

Car Ownership Study

The study, conducted last spring, was composed of 3,610 Millennials aged 18 through 34. Another 400 Generation Xers, roughly ages 35 to 50, and 403 baby boomers, ages 51 to 68, were also included. It was through focus groups, one-on-one interviews and subjective field studies, that much of the data used in the study were accumulated.

“Millennials are perhaps the most sophisticated consumers the world has ever seen – highly educated, demanding, and incredibly adept at using technology to make thoughtful purchases,” said Jeff Lucas, Head of Sales, Music and Entertainment, Viacom Media Networks. “We want to understand how Millennials’ attitudes toward car ownership are changing as they grow older, the economy improves and the auto sales landscape evolves.” Viacom owns MTV.

The MTV findings demonstrate that approximately eight in every 10 Millennials use a car more often than any other transportation mode to move them to where they are going. The researchers noted that these findings fly in the face of studies over the past few years that indicated a drop in interest in driving among younger people. They concluded that young people are “aging up into car ownership” and are in a better position to afford a new car as the economy improves.

Millennials Take to the Road

Notably, the study found that today’s young people claim to drive more miles per month than for any other generation. Those numbers show a 72 percent increase in the average number of miles driven in contrast to baby boomer drivers (934 miles vs. 544 miles) while also maintaining an 18 percent edge over Generation X drivers (934 miles vs. 790 miles).

The researchers described Millennial interest in driving as “passionate” as 70 percent of the youngest respondents articulated that they “like driving a lot” compared to 58 percent of baby boomers and 66 percent of Generation Xers. Furthermore, young people are demonstrating an even greater longing to purchase and own cars.

Some 82 percent of Millennials have shown excitement in finding, buying or leasing a new vehicle. Approximately 75 percent of young people indicated that “they couldn’t live without their current car.” They are also aspirants with 85 percent looking forward to “one day owning the car they’ve always wanted,” compared to 59 percent of baby boomers and 72 percent of Generation Xers.

A Better Buying Experience

Millennials are also embracing new cars and technologies at a greater rate than other generations. Some 73 percent of young people say they “love learning about new car models and functions” compared with 69 percent of baby boomers and 54 percent of Generation Xers.

In addition, the survey noted that there are some ways that dealers might enhance the buying experience for all consumers, especially Millennials. For instance, approximately 80 percent of respondents believe that the buying and leasing process should “take less time.” Also, most expressed dismay with current ratings and comparisons, finding them unclear. And 87 percent stated that the “buying process should be more transparent.”

And in a nod to aftermarket retailers, 87 percent of Millennials indicated that they like to customize their cars to make them unique. However, they would like to do so in more affordable ways.

Advertisers should also take note of what Millennials are thinking as 57 percent claimed that car advertisements influence their buying decisions. Yet, nearly half of young people said that such ads “do not speak to who they are.”

Subsequent Survey Set

The initial MTV survey will be augmented by a second survey, to be released later this year. However, the debate over young people’s car-buying habits may not be over. Indeed, this study flies in the face of what has been accepted in recent years and may be disputed by others with their own pool of data. Regardless, the US auto industry is in much better shape now than it was in 2009 when interest in new car buying was at the lowest we have seen in our time among all demographics.

MRY Study Reveals That We Still Love Our Cars

May 19, 2014 by admin 1 Comment

And don’t touch our smartphones!

American consumers are not about to give up their cars despite the rise in popularity of car sharing services such as Zipcar.

MRY: Young want to buy new cars. A Jan. 2014 study conducted by MRY with Whitman Insight Strategies and released this month surveyed 1,000 people across the United States, evenly dividing the group between under-35 consumers (Millennials) and individuals ages 35 on up. Each person surveyed was required to own a smartphone while also possessing a valid driver’s license.

MRY: Millennials and Their Driving Aspirations

The surveyors wanted to find out if handheld devices were trumping the behind-the-wheel driving experience, especially as recent data has revealed that fewer 16 year olds had driver’s licenses. Some people have argued that young adults are much more interested in their digital devices than they are in acquiring a car. The survey found that this simply is not true as 94 percent of surveyed Millennials currently own or lease a vehicle. That figure compares to 99 percent of consumers who are at least 35 years old.

Lest you think that attaining a new car is a lower priority for some, the survey revealed otherwise. Indeed, 91 percent of the respondents said that “…owning a car is very important to their life.” For them, car ownership is more important than having access to high speed Internet, owning a smartphone, or email. What should encourage the car sharing companies is that this same consumer pool considers having access to a car and owning one synonymously.

Types of Car/Ride Sharing Services

A Zipcar Ford Focus.

Car sharing services can tell you a few things about the typical user: these individuals are young, tech savvy and are “early adopters.”

MRY found that 51 percent of Millennials would use a branded car sharing service if one were available where they lived. By “branded” that term describes services currently provided by BMW and Volkswagen. That figure compares to 48 percent of respondents who would use a standard car sharing service (Zipcar, Car2Go and Hertz 24/7) and 46 percent who indicated that they would use a ride sharing service with a private driver arranged through a mobile app.

The survey also asked respondents to evaluate tech companies and car manufacturers, comparing their performance in a pair of important technological metrics: innovation/disruption and personal connection. Apple, Amazon, Lyft, Uber and Zipcar performed quite well as did Ford and Toyota. However, consumer perceptions of Volkswagen and General Motors came in lower. Toyota has been at the cutting of hybrid technology while Ford has led in connectivity with its innovative SYNC infotainment system.

Both smartphones and cars provide similar advantages including making life easier for users. Cars and electronic devices enable people to experience new things, provide an escape from a hectic day, give them a sense of freedom, and help people accomplish their daily tasks. Interacting with family and friends was seen as another benefit of having both, what are considered of equal importance by most respondents.

MRY: Future Car Playing Plans

An overwhelming number of the respondents also indicated that they plan on buying or leasing a new car within the next three years with just 7 percent saying that they had no plans to do so. Half of all Millennials expect to make their purchase within the next year with about one-quarter planning to do so within the next two years. Seven percent plan to buy a new car within three years. The remaining sample indicated that they are not currently in the market for a new vehicle.

The MRY survey did reveal several important facts about young adults and how they currently get around. Some 17 percent of Millennials use a transit system (train, subway) to 10 percent of those aged 35 and up. They are also more likely to ride a bus coming in at 18 percent to just 7 percent for older Americans. Five percent use car sharing services to just 1 percent of the older Americans.

The Ford Fiesta is one such model that targets Millennials.

Even with strong interest in buying a new car, respondents still look at car/ride sharing favorably with 52 percent saying that they would consider using such services to 48 percent who indicated that they would not. The survey also discovered other behaviors including that they like brands that are innovative, but also prefer those grounded in history or heritage. Many respondents also believe that they are tech savvy and prefer brands that are too. Importantly, they believe that they are also more advanced about tech trends than their friends.

If You Were a Car

Lastly, the MRY survey asked respondents the following question: “If you were a car, what brand of car would you be?” Ford and Toyota received the top answers followed by Honda and BMW. A number of mainstream brands fared quite well too including Dodge and Chevy. Quite a few brands or models such as Jaguar, Corvette, Lincoln, Tesla and Mustang had small responses.

See Also — MTV Says: Millennials Love Their Cars!

Deloitte Report: Young Adults Want to Buy Cars

January 22, 2014 by admin 5 Comments

Automotive executives have enough worries to keep them awake at night. Recalls. Upgraded IIHS crash standards. Federal fuel requirements. Persnickety consumers, especially young people that seem disinterested in buying a new car.

Honda Insight. — The Honda Insight is among the hybrids that Gen Y buyers want.

Deloitte Survey and Report

A recently released Deloitte LLP report will be carefully studied by these same executives as it is those findings that should give them some much needed assurance that young adult consumers do, in fact, want to buy a new car. Moreover, the Deloitte report on global mobility found that the approximately 80 million Generation Y (Gen Y) consumers (born between 1977 and 1994) are anticipating buying or leasing one.

The Deloitte study surveyed more than 23,000 consumers in 19 countries including 2,000 people in the United States. Of the American participants, 677 fit the Gen Y profile. And it is from that profile Deloitte extrapolated its findings to reveal that about 61 percent of these consumers expect to buy or lease a car within the next three years, including 23 percent who intend to do so within the next 12 months.

Deloitte also found that young consumers aren’t necessarily willing to give up their own cars for other options including car sharing and public transportation. Just 29 percent of the respondents indicated their willingness to do so. What they do want are cars that are affordable, fuel efficient, safe, and have the latest technological amenities.

Honda Insight Said Craig Giffi, vice chairman, Deloitte LLP, and automotive practice leader, Affordability is the mantra for Gen Y consumers who dont already own or lease a vehicle. When asked what purchasing criteria mattered most to them, a majority cited cost-related items such as the vehicles price tag, fuel efficiency and payment options.

Alternative Powertrains and Safety Features

Alternative powertrains have the attention of Gen Y buyers, with 59 percent expecting to drive a vehicle so equipped within the next five years. Hybrid electric vehicles lead the pack with 27 percent of the respondents indicating their interest in this technology. That was far ahead of plug-in hybrids (8 percent), pure electric vehicles (7 percent) and fuel cell vehicles (4 percent). To get there, 58 percent would like to see government incentives in place to support their future purchases.

Safety features are very important to young car shoppers too. Nearly three-quarters of the respondents like technology that warns them of the presence of other cars on the road (blind spot information systems, for example) and nearly two-thirds of them like the idea of being warned when they exceed the posted speed limit. More than half (56 percent) want technology that entertains them and 57 percent want to easily customize a vehicles technology after purchase.

While Gen Y may not necessarily scrutinize horsepower, acceleration times or engine size, they do have clear needs, wants and desires, especially when it comes to remaining connected to all of their lifestyle technology while on the road, noted Masa Hasegawa, principal, Deloitte Consulting LLP. This is good news for car makers, who already offer – or are bringing to market – many of the features Gen Y consumers most want in a vehicle.

Toyota Prius. — Toyota’s Prius family may have special appeal for Gen Y buyers.

Positive Automotive Dealer Feedback

Deloitte also had some very good news for automotive dealers, the people that are oftentimes looked at with fear and loathing by consumers, especially more mature car buyers. Those older buyers have routinely expected that their car buying experience would be an unpleasant one, but for Gen Y consumers 41 percent have a positive attitude toward dealers. This compares to a 22 percent rating on average.

Moreover, 40 percent of Gen Y consumers have indicated that the salesperson had a major or significant impact on the the vehicle purchase compared with 27 percent of consumers from other generations. Deloitte found that young car buyers look at their purchase as a collaboration between them and the dealer. These future buyers have also praised automotive manufacturer websites, with 53 percent saying that they have had a significant or major impact on their buying decision.

Future Business Model Possibilities

Automotive manufacturers should also realize that future and yet untapped business models may help promote their businesses as well. Although most respondents indicated little interest in car sharing or car pooling, a significant number (42 percent) said they would be if it were readily available and convenient. They like the idea of sharing a car with a friend or a relative, but 57 percent expressed concern about their safety, security, and privacy when sharing a ride.

For respected and established auto brands, this could be a chance to cater to an open-minded group of buyers with trusted products and services that didnt even exist a few years ago, said Candan Erenguc, senior manager, Deloitte Consulting LLP.

So, what is the ideal car for this generation? We may already see a pair of them on the market: the Toyota Prius C and the Honda Insight, both which meet the criteria of an alternative powertrain (hybrid), low cost (under $20,000), and certain safety parameters. Still, both models would also have to include several of the pricier technological features that this generation wants and do so at a price point that is palatable. In any case, the Deloitte study provides a positive outlook on where the industry may be headed and of the consumers who will be purchasing these cars.

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5 Smart Car Buying Tips for Consumers

September 11, 2013 by admin Leave a Comment

Car buying tips for today’s consumers.

If you are in the market for a new car, there are several things for you to keep in mind as you begin to shop for one. Comparison shopping is, of course, essential — you want to ensure that the vehicle you buy is the right one for you and that you can get it for the best possible price. Whether you are shopping for a new Ford, a Cadillac, or one of the dozens of other brands, there are some commonalities in the car buying experience. Read on to learn about five smart car buying tips to consider before you make your new car purchase decision.

1. Your needs and your needs alone — What type of vehicle are you shopping for? Likely, you already have something in mind, a vehicle that is within your budget and meets your needs. Your car buying needs can include a number of things such as the number of doors, engine and transmission choices, technological features, in-cabin amenities and towing capacity. Rank your “must haves” to find a vehicle that comes closest to meeting your requirements.

2. Brand loyalty or something new — Today’s car shopping consumers are willing to try different brands as vehicles from emerging manufacturers such as Kia and Hyundai are quite competitive. You may be a diehard Toyota or Honda owner, but you may want to benchmark your car from others in your segment. For example, if you own a Honda Accord, there are other models in your segment that might offer more car for the money including the Nissan Altima, Hyundai’s Sonata and the Ford Fusion. You may be brand loyal, but it does not hurt to know what competitors are offering as you shop for a new car. Read Consumer Reports and Auto Trends Magazine for information about today’s top models and car buying tips.

3. Your insurance premiums — How often do you shop for car insurance before you make a new car purchase. Likely, you do not. This can be a mistake as you may end up buying a car with much higher insurance costs than a competing model. Insurance companies make use of Insurance Institute for Highway Safety ratings when setting premiums. Cars that score highest or are ranked a “top safety pick” should have lower insurance rates.

4. Trim levels and packages — The longer you plan to keep your car, the more likely you will want one that offers the amenities that are important to you. A base model may come fairly well equipped, but if you plan to keep it for five, seven or even 10 years, then can you live without some of the amenities people want today such as a navigation system, a rearview camera and important safety features such as collision avoidance? These goodies will cost you more, but are often reduced in price if you choose a higher trim level or buy a technological or convenience package. Besides, better-equipped cars have a higher resale value and your insurance premiums might come in lower if your car comes equipped with certain safety features.

5. Consider a leftover model — Whenever a new model comes out, dealers are eager to push out older vehicles. This is all the more important when a model change is made. For example, the 2013 Ford Fusion is all-new, the second generation of this popular model. If you want the new model, then go ahead and buy it. If that isn’t important to you, then a leftover model can save you some money. Dealers receive incentives from manufacturers to push older models off of dealer lots, giving you more room to negotiate a better deal.

Car Buying Considerations

The Internet is your friend when it comes to new car shopping. Visit more than one dealer site to inspect inventory. Reach out to salespeople via email to get more information, but don’t make face-to-face contact until you are satisfied that a deal works for you. By all means, test drive your new car — you need to be completely satisfied that it will deliver to you years of satisfying driving.

See Also — 5 Year-End Car Buying Tips