Why December is the Best Time to Buy a Car
If you’re looking for flexibility, incentives or the best deals, December is the ideal month to buy a car. Dealerships are typically looking to clear out inventory and hit their sales targets as the year comes to an end. To attract buyers, they offer fantastic deals. No matter what kind of vehicle you may be searching for, December is the best time to make the big purchase.
End-of-Year Discounts
The year-end sales are one of the most attractive aspects of buying a car in December. Dealers reduce prices on the current stock in preparation of new models arriving. Markdowns on both new and used vehicles make finding great deals an easy process.
It’s common for car shoppers to negotiate with dealerships and get a price even cheaper than the original sale amount. If you’re looking for a bargain, December is the best month to find one.
Sales People Are Trying to Meet End-of-Year Sales Quotas
December is the home stretch for sellers to meet their yearly sales goals. Big holiday bonuses typically motivate salespeople to close deals by any means necessary. In hopes of meeting their goals and receiving these rewards, they are oftentimes more willing to negotiate. You may receive better prices, financing and other advantages just by shopping at the right time.
Better Trade-In Values
Dealers often make better offers because they’re aware that competitive trade-in values help them close deals. This can lower the total cost of your new automobile drastically. Choosing to trade in your vehicle in December could save you thousands of dollars on your next auto purchase.
You Can Use Your Holiday Bonus
Salespeople aren’t the only ones who benefit from holiday bonuses. Strategically using extra cash during this period for a down payment could help you upgrade your vehicle or reduce your monthly payments. Car dealers are aware that many people receive winter bonuses and often offer incentives or discounts to reflect this.
Dealership Competition
Another perk of December deals is how competitive they are. Dealerships often compete fiercely for customers' business at the end of the year.
They may offer low prices, free upgrades and other tempting deals to try and win you over. Searching around at different dealerships could help you suddenly find a great deal. One dealership will almost always try to undercut the other dealership by offering you a price you like.
Holiday Promotions May Result in Lower Interest Rates
Year-end promotions often involve lower interest rates or deferred payments. These deals might make owning a car more economical in the long run. Even a small drop in interest could save you hundreds or thousands of dollars over time.
Holiday Promotions Could Include Dollar-Off Discounts
Lower financing isn’t the only way to save on car shopping at the end of the year. Holiday promotions often include significant price reductions. Prices might drop hundreds or even thousands of dollars. People with tighter budgets might benefit greatly from deals like these. Sales may differ depending on brands or dealerships, so it’s worth searching around different places to explore your options.
Seasonal Slowness Leads to Better Deals
Although the end of the year can be the best time to buy a car, a lot of people don’t take advantage of this. December tends to be a slow season, prompting dealerships to offer amazing deals in order to attract customers. Having fewer people shopping during this time can help salespeople provide more personalized experiences and give buyers more attention.
Tax Advantages
For some buyers, purchasing a car before the end of the year can benefit them when tax season comes around. Business owners may be able to deduct the cost of their vehicles from their taxed income. Local or state tax breaks may be available to individual buyers who qualify as well.
Use Loyalty Rewards Before They Expire
Some car dealerships have loyalty programs, offering people rewards for repeat business. Typically these offers expire at the end of the year, so it’s best to make use of them before they expire. If you are involved in a loyalty program, December could be your last chance to cash in on these rewards.
Manufacturer Rebates
It’s common for car manufacturers to offer rebates during the holiday season to hit year-end sales targets. These rebates can drastically lower the total price of a vehicle. Manufacturer rebates are valid across an entire brand’s network, giving you more options. You might be able to save even more money by stacking these rebates with dealer incentives.
Test-Driving Availability
With fewer shoppers in December, test drive scheduling becomes much more flexible. Going to a dealership when it's convenient for you allows you to consider all your options. You are able to study several models in a more comfortable setting, which ultimately leads to a better decision.
Finance Department Flexibility
As we near the end of the year, loan officers may be more lenient in their conditions for approvals. This can result in more favorable financing conditions, reduced monthly payments or extended loan periods. You might even be able to get a financing package that's not available at other times of the year.
Extended Warranty Options
Extended warranties are a common component of end-of-year sales. These warranties offer additional coverage for repairs and maintenance after the usual coverage term ends. Getting one of these warranties can significantly boost the worth of your investment.
Dealerships often offer these in December to meet annual sales goals. Car manufacturers sometimes provide extended warranties in December because they know it is a prime time for customers making big purchases.
More Add-On Incentives
Winter tires, new technologies and premium packages are just a few of the extras that dealerships often offer in December. These optional accessories boost your purchase's value without raising the price. Other add-ons commonly offered as part of December promotions include GPS systems and heated seats.
Holiday Hours
In December, many car lots stay open later to accommodate customers shopping for Christmas gifts. This increased availability gives buyers more time to explore and bargain. This also gives you more freedom to come at your convenience thanks to expanded hours, whether that's in the morning or the evening. Buying a vehicle may be a stressful ordeal, but this convenience might make it more bearable.
Limited-Time Luxury Deals
During the month of December, it is not uncommon for luxury automobile makers to run big sales. Customers who would have thought a luxury car was out of their price range before seeing these sales may now be able to afford one. If you're thinking about buying a luxury car, make sure to ask about lower leasing rates and free upgrades.
Preparing for Car Shopping in December
You can save a lot of money by buying a car in December, but you need to be well-prepared to take advantage of these sales. You should begin by establishing a realistic spending limit. To avoid going overboard, it's a good idea to calculate how much you can afford, both for the initial investment and the ongoing payments.
To simplify financing, it helps to use online calculators to estimate expenses. You should also think about getting pre-approved for a loan.
The next step is to look into the various automobiles that interest you. Finding the right make and model for your requirements is essential since December is the best time to get savings on departing models. You'll find it easier to detect a good bargain by checking internet reviews, comparing features and noting typical costs. In your assessment, be sure to include insurance premiums, fuel economy and maintenance expenditures.
Now that you have a better idea of what you need, it's time to collect all of the paperwork. Commonly requested documents during finance talks include evidence of income, identity and insurance details. Taking the time to detail your car and finding out how much it's worth is vital if you're trading it in. When bargaining with dealers, knowing how much your trade-in is worth offers you more power.
Lastly, be sure you visit several dealerships on your itinerary. The greatest way to locate bargains is to compare offers from multiple places. You can make the most of the sales in December and leave with complete peace of mind if you plan beforehand.
Questions to Ask the Dealership When Buying a Car in December
Are there any sales or promotions happening at the end of the year?
Will there be any discounts or rebates offered by manufacturers this month?
Would you happen to have the final pricing that takes into account all the fees, taxes, and extras?
Does the dealership have any special holiday promotions or financing deals?
Are other dealerships' offerings comparable or better than yours?
As of right now, what are the dealership's financing interest rates?
Is it possible to get a loan with no interest or a very low interest rate?
If you want the best financing conditions, what kind of credit score do you need?
Can you tell me the difference between paying cash and getting a loan?
Are clients who have their loans pre-approved eligible for any special discounts?