When is the best time to buy a car?

When is the best time of year to buy a car?

The best time of year to buy a car depends on your situation, but you're more likely to find a favorable deal at these times:

End of the month or quarter

The end of the month or quarter are some of the best times to buy a new car, according to Kelley Blue Book. Automakers and dealers often have monthly and quarterly sales quotas. If they're struggling to meet the quota or they're close to reaching another sales incentive, a dealer may be motivated to offer a lower price on a car. Don't wait too long to start the buying process, so you can negotiate the best car deal as the end of the month or quarter nears. The end of quarters are March, June, September, and December.

End of the calendar year

It may be wise to wait until the end of the calendar year to buy a car. Dealers at this time are motivated to sell based on end-of-month, end-of-quarter, and end-of-year sales quotas. Automakers and dealers also commonly have end-of-year sales events that offer favorable financing terms, as they make a final push to boost annual sales figures.

End of model year

Automakers update car models every year. You may be able to get a better deal on a model you prefer as the new model becomes available. When the new model arrives, dealers may offer discounts on older models, as they try to clear their supply and showcase the new model.

Traditionally, new models have been released in the fall, but release dates are varying more. Research the automaker or contact a dealer to find the release date of the model you're interested in, so you can be prepared to buy an older model at the right time.

Holidays

Holidays such as Black Friday, Memorial Day, Independence Day, Christmas, and New Year's Eve or New Year's Day are popular days or weekends to buy a car. Dealers often use these holidays to increase enthusiasm around a sale, when they offer discounted prices, favorable financing, rebates, or cash back.

Should you pay MSRP or sticker price for a new car?

A car's MSRP is the manufacturer's suggested retail price. A vehicle's MSRP is based on the specific factory options it comes with. MSRP is displayed on the Monroney label, the window sticker on a car for sale. MSRP is just one part of a car's "sticker price."

When buying a new car, it's not always possible to negotiate down from the MSRP. Here are some circumstances that might lead to you paying at least MSRP for a new car:

• If the car is in high demand
• If you're shopping in a location without much competition
• If you're purchasing a highly anticipated car released in the past few months
• If a car is selling out as soon as it comes into stock
• If you're looking for hard-to-find features of a specific car make and model
• If the dealer has non-negotiable policies that dictate when they charge MSRP

If you have a tighter budget, consider buying a used car or looking at a common model that might have a more negotiable price. You can even shop around online via Progressive's Car Shopping Service provided by TrueCar. You'll be able to compare prices and get offers from local certified dealers before visiting a dealership.

When is the best time to buy a used car?

Follow many of the same principles above when buying a used car. It may be useful, however, to wait until after dealers are finished with a big sale to seek out a used car. Often, dealers are left with a large inventory of used cars that were traded in as part of a new car sale. As supply increases, you may be able to find a better deal on a used car in January and February.

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