Spring 2022 Update: The continued glut of semiconductors and resulting vehicle shortages have pushed new and used car prices to record highs.
“Dwindling inventories continue to wreak havoc on both the new and used vehicle markets,” said Jessica Caldwell, director of insights at Edmunds.
As a result, car buyers today face limited choice and price hikes, whether due to (often non-negotiable) dealer-added extras or ‘market adjustments’. All sorts of discounts are less than the cars themselves, so the buyer has no bargaining power. It’s even more urgent to make a quick deal decision because the car may not be there if you take the time to think it over.
This means that these are far from normal times, both in terms of the range of cars available and the lack of potential discounts. If you need a new car today, you’ll want to start the buying process sooner rather than later, as chipset shortages are likely to affect pricing and inventory through at least 2022.
If you’re looking to buy a new or used car in today’s tough market, check out our Car Buying Tips 2022 article for insightful, data-driven advice from our experts. If the shortage continues, the near future could be the so-called “best time to buy.” The best time in today’s market is when you find a dealership that has the vehicle you want and is willing to sell it to you at MSRP or better, with no extras you may not need.
However, many of the key elements of this story still hold. Outgoing models get discounts more often, long-awaited new models don’t get discounts as quickly, and you’re more likely to get good service during the week than on a busy weekend. As the auto market stabilizes, deals are likely to fall into patterns like the ones outlined below.
Shoppers are always looking for a way to trick the system and save money on big purchases. Much of this thinking revolves around finding the best time to purchase a particular product. Do you need a new TV? Shop on Black Friday or around the Super Bowl. Need a new winter coat? Buy in January.
It’s no different from cars. And you will receive answers at the end of the month “just wait for the new models to come out”. There are as many theories on this subject as there are days in the year. And oddly enough, many of them contain a grain of truth.
The best time of year to buy a car
End of the month
As the month draws to a close, dealerships could lose some cars below their sales quota, which would net them a big bonus. Sellers are more motivated to deal with a buyer and can heavily discount cars and recoup the lost money with a bonus. This is the time when you shouldn’t sleep in a car dealership. However, keep in mind that if the sales team hits their quota at the beginning of the month, the salespeople may not be as motivated to give you the screaming deal you might expect. This is hard to know in advance. But if you’re in the middle of negotiating and the dealer offers you a very low price, ask your seller why the seller might be willing to lose money on this sale. If you think the reason makes sense and that the price is significantly better than your research suggests, it could be a sign that the retailer is trying to set a sales goal.
If you’re nervous about buying in the short time frame at the end of the month, test drive a car you’re interested in at the beginning of the month and close the deal as the end of the month approaches. Plus, many new car incentives are still valid for a few days after the end of the month, giving you some extra to spare.
End of the calendar year
If you’re primary goal is to buy or lease a new car at the best price possible, data from Edmunds shows December’s year-end sales will bring you a “perfect storm” of savings.
