Depends. The answer is based upon your personal financial situation.
I’m expecting there to be very attractive deals in the upcoming weeks and months.
With the uncertainty of the economy and job market, this current time could be a risky move. However, I would recommend that you have at least six months to a year (leaning more towards a year) of expenses saved if you are wanting to purchase a car.
More importantly, assess if this purchase is a want or a need. If you have extra funds available at the moment, perhaps those funds could be best used in some type of investment at this current time. The stock market is down at the moment; therefore, could those funds be better served there?
Those who are satisfied with their investments and who have adequate savings, this could be an opportune time to buy a car.
Although, I am typically not a proponent of purchasing a new vehicle, I expect this is where you will find the larger discounts.
GM is already offering extended terms (be careful with this) and lower interest rates on select vehicles.
For instance, I have read that the company is beginning to discount the brand new previous generation Corvettes. Since the 2020 Corvette is all the rave at the moment, the new 2019 Corvettes should be significantly discounted. I understand that GM has a fairly large amount of them in inventory. If you are not the type of person that has to have the latest and greatest, this could present a good deal for you.
To answer the initial question, yes, this could be a good time to buy a car if you are in a financial situation that allows for it.
Deals are beginning to appear, and I expect them to be even better in the upcoming weeks.
Well, Q4 is upon us. This is what I consider to be the best time of year to purchase a car.
As you probably already know, dealerships have goals and quotas to meet. Included in this would be end-of-year goals. Making a car purchase at the end of the year could increase your chances of getting a better deal. According to iseecars.com, the months of November and December offer 26.9% and 23.5% more deals than average, respectively. If I were in the market for a new car, I would begin my search now, in October. There are deals to be had in October, and it gives more time research and compare prices. Pick 3-5 vehicles that you are interested in and compare pricing, options, rebates, promotions, etc…
In addition to quotas, another prompt for dealers to discount cars is due to overstock. The new models begin to roll out late summer and fall, and the dealer has to make room for these new cars. For instance right now, you may begin to see better deals on the 2019 models as the 2020 models are beginning to fill up the dealer lots. Pay attention if a vehicle has been redesigned for the new model, you may begin to see significant discounts on the current model, because they can appear to be less desirable. On the flip side of this, if you are in the market to lease a vehicle, you may see better lease deals on the newer model compared to the current model. Tip: Ask the dealer to show you a side by side comparison of 2019 and 2020 model lease rates. The newer model will likely have better rates due to residual value. Residual value on a lease refers to the estimated value of the lease vehicle at the end of the scheduled lease term.
If you are in the market for a preowned vehicle, there are deals to be had, they just may not be as heavily discounted compared to new vehicles. Larger dealers will begin to receive an influx of people who want to trade in their cars for the latest models and lease terms will be coming to an end. This will present an opportunity to purchase a nice preowned vehicle.
When doing your research and preparing for your car purchase, there a few things to keep in mind.
If the vehicle you want is a strong seller and in high demand, there may not be much of an incentive for a dealer to discount the price.
This may be a similar case for smaller independent used car dealers. Their profit margins may not be as large and they may not have the overstocked inventory problem to contend with to warrant heavy discounts.
The end of the year is not the only time there are good deals offered. Take advantage of holiday sales events and promotions. Christmas and New Year’s, but also Memorial Day, 4th of July, and Labor Day sales can have good discounts.
Most importantly, exercise patience. When negotiating a car purchase, be willing to walk away if you do not feel good about the deal and if isn’t right for you. Wait for the deal that you want (if it is within reason). Chances are you will not likely get a $20,000 car for $12,000. Do your research so that you know what your ideal car is selling for. Truecar.com and Cargurus.com are great resources for price comparisons.
Good luck on your car purchase journey!