It seems that customers are always wondering, when is the best time to buy a car? Are car dealers really more willing to wheel and deal at the end of the month? Below are a list of some car buying facts that may help you decide when to purchase your next vehicle.
1. Am I better off waiting until the end of a model year to buy a new vehicle? It is true, incentives are better at the end of a model year than at the beginning. Example. The 2010 Elantra, when first released had a $1000 customer cash rebate. Today, with the 2011 headed to dealers, the 2010 Elantra has a $2500 rebate. Obviously it would have been better to purchase one later in the year.
2. Do car dealers give better discounts at the end of the month. FALSE! Every dealer that I know wants to get every deal they can, regardless of the day of the month. It is like the old adage, if a baseball team loses a game by one run, was it the run in the first inning or the last inning that cost them the game? Every day is a good day to buy a car based on the customer’s schedule, not the dealers.
3. Do certain incentives change every month or is that just a way car dealers build urgency for me to buy? Oh yes, incentives change monthly, sometimes twice a month. Typically, manufacturer, like Hyundai, takes a snapshot of the inventory in a region. From there they determine the days supply of each vehicle. If dealers are having a hard time moving specific models then the incentives (rebates) go up. If there supply in low then the incentives are reduced. I have seen several instances of customers losing out on thousands of dollars by waiting until the next month.
4. Am I better off buying a vehicle out of stock or ordering a vehicle exactly like I want? This is a hard one. Yes, the deals are better if you buy one in stock. Why? First off, there are extra expenses with locating a vehicle from another dealer. There are fees like drivers, gas, tolls, and insurance liability just to name a few. Second, there is always a chance that the “brand new” vehicle that gets driven in from another dealership could get scratched, a few stone chips, or worse yet in an accident. Dealers would rather discount an in stock vehicle to save on floor plan expenses (loans paid on the new car inventory), increase their new car turn rates and guarantee immediate delivery. Ultimately, you have to be comfortable driving the car that the dealer has in stock. If you can’t live with the color, trim level or equipment don’t settle. You’ll always wish you would have gotten exactly what you want. Be patient and willing to pay a little more.
5. Would I have any more leverage at the end of the month at all? Of course you could. If your salesman is one car sale away from hitting his quota to receive a bonus. The store is within range of their required monthly output, etc… Under these situations a dealer may be willing to put a few extra dollars in your trade to help. Most dealers would be willing to do that on the first of the month too and not make you wait until the end of the month.
In summary, do your research, be flexible and come in to see the dealer when it is convenient for you. Dealer like Glenbrook Hyundai will walk you through the process, make sure you get all of your questions answered and give you a fair deal. For my personal help call 260-484-9531 or 1-800-Hyundai. Also, feel free to email me at shousholder@HappyCarStore.com or online at www.HappyCarStore.com
Glenbrook Hyundai, Drive Happy!
