NEW YEAR

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.

Last Minute Year-End Car Buying Tips

December 30, 2012 by admin 1 Comment

The calendar is winding down and come late tomorrow night we will be singing “Auld Lang Syne” as 2012 gives way to 2013. If you are shopping for a new car, however, you have through next Wednesday to buy a car and have that car counted toward 2012 sales. So, what is the big deal about that? Well, first you have more time on your hands to look for a better deal. Second, you can take advantage of industry competition and play these companies off of each other — that is if you are not brand loyal.

Basics

The auto industry’s selling periods do not follow the calendar precisely. That is because dealers want to even out the number of selling days each month although this year those days ranged from 24 days in April to 28 days in March.

Dealers are typically closed on Sundays and those days are not counted in the monthly mix, even if a dealer is open on this weekend day. National holidays are not counted as selling days either. Expect that some dealers that normally are closed on Sunday will be open today and those sales will be counted on Monday.

December Sales

December’s selling period always extends into January. That’s because the number of national holidays late in the year to early the following year is three and some balance must be struck to gauge sales. December sales began to be counted on the Dec. 1, but with five Sundays in the month plus Christmas followed by New Year’s Day, Jan. 2 is the last day that 2012 sales will be counted.

Just as some dealers will be open today, some will also be open on New Year’s Day — maybe not at 9 a.m. to allow late-night party-goers to regroup, but by 12 noon and perhaps well into the evening. On Wednesday, some dealers will open early and close late, in a bid to get in that final sale before the books are closed on the year.

Year-End Deals

Earlier this year in “Black Friday and New Car Deals,” we examined how consumers could save money on a new car purchase on the day after Thanksgiving. Although we stick with our guns to say that this day still offers some very good bargains, we did notice that some dealers were holding “Black Friday Sales,” making us wonder just how good those sales really were. New car dealer managers are not dumb, just annoying — wink, wink — and can just as easily read as you can, knowing that consumers are looking for bargains.

As the sales year comes to an end, there is a tussle going on between manufacturers for bragging rights. Last year, we saw BMW and Mercedes-Benz battling for the top as tsunami-battered Lexus lost ground. That battle between two premier German brands also became a source of irritation for industry analyst as both companies held back final sales data for a full day to see who won. BMW ended up winning top luxury brand honors as Lexus’ 11-year reign came to an end. For shoppers of both German brands, incentives helped close many sales.

The big battle this year will once again be on the luxury front although you can look at some vehicle segments and guess that the deals will be flowing. Toyota’s Camry looks as if it will retain its position as the best-selling midsize model, indeed, the best-selling passenger vehicle model in the U.S. for another year. Ford has a lock on standard pickup trucks, so look for some movement in other categories including compact SUVs, minivans and perhaps among mini cars.

Ready. Set. Shop.

Are you in the market for a car? Well, contact several local dealers and find out what there hours are from today through Wednesday. If you have some time on your hand, you may find it beneficial to eat your supper on Wed., head to the dealership and prepare to negotiate. You may have the sales staff on pins and needles as they wonder whether you will agree to a deal and how much that deal will cost them.

It will cost them plenty if you deal wisely.

See Also — How to Lease a Demo Car

Photo courtesy of Billy Alexander.