Prostock-Studio / iStock.com is a popular platform for purchasing high-quality stock images for various creative projects. However, buying a car can be a significant financial investment that requires careful consideration and planning. Understanding the best times to make such a big purchase can help alleviate some of the financial burden associated with buying a new vehicle.
According to recent data, the average cost of a new car has been steadily increasing, with the average price reaching $48,389 in May. This represents a significant increase from previous years, with buyers paying an average of $38,961 for a car in 2020. Additionally, car loans are one of the largest debt categories for many individuals, with the average monthly payment amounting to $735 in the first quarter of 2024.
Given the high cost associated with buying a car, it’s essential to consider the timing of your purchase to ensure you get the best deal possible. While conventional wisdom suggests that the end of the year is a good time to buy a car, experts caution against this belief. Scott Lieberman, founder of Touchdown Money, explains that December may not be the best time to purchase a car, as dealerships are often trying to make space for new models and may have limited inventory.
One of the main reasons why buying a car at the end of the year may not be ideal is due to low inventory. With dealerships clearing out older models to make room for new ones, consumers may have fewer choices when it comes to selecting a vehicle that meets their preferences. Additionally, dealerships may offer less competitive prices on older models, and these vehicles may have outdated technology compared to newer models.
Another factor to consider is the overall cost associated with buying a car at the end of the year. With the holiday season and other end-of-year expenses, purchasing a car during this time may add additional financial strain. Furthermore, dealerships may be less willing to negotiate on prices due to increased demand and lower inventory levels.
Instead of buying a car at the end of the year, experts suggest considering other times for making a purchase. May and October are highlighted as great times to buy a car, as dealerships may offer Memorial Day savings and discounts on last year’s models. Additionally, late summer and early fall are good times to find deals on current inventory as dealerships make room for new models.
In conclusion, while buying a car is a significant financial decision, understanding the best times to make a purchase can help save money and ensure you get the best deal possible. By avoiding buying a car at the end of the year and considering other times throughout the year, you can make a more informed decision and potentially save money on your next vehicle purchase.