When Is the Best Time To Buy a Car?

It would be an understatement to say that 2021 has not been a typical year, and the automotive industry is no exception. Worldwide shortages of automotive semiconductor chips, rubber, and even foam for auto seat interiors have caused a car crunch.

"Manufacturers aren't producing as many vehicles as they used to, if at all," said Andrew Guthmiller, owner of Gocarconcierge.com and a former car sales manager. He cited General Motors' recent announcement of production plant downtime. "A car is waiting for you at a dealership." However, where most dealerships used to have 50 to 100 cars to choose from, there are now only four or five."

Luke Bratlie, general manager of Holmes Volvo Cars Dealership in Shreveport, Louisiana, has encountered shortages similar to those described by Gutmiller. "The entire industry is feeling the pinch of supply chain strain with factory closings and temporary shutdowns," he said via email, adding that Volvo Cars has been able to allocate vehicles to dealerships.

However, as a result of the car crunch, prices on new and used cars are higher than they were a year ago, according to Guthmiller. So, while the advice we'll give you may help you save money, the timing of your purchase may not be as effective as it was last year—or will be next year.

"There isn't really a best time right now," Guthmiller said. However, learning the fundamentals now will help you plan for and negotiate your next purchase.

What’s the Best Time of Year To Buy a Car?

According to Bratlie, year-end offers closeout pricing on current-year models. Deals should begin to appear in October and continue until the end of the year. "By Black Friday, the pick of the litter is all gone, and if you want to buy something for New Year's Eve, you're at the mercy of whatever is left," he said.

March is also a good month to buy a new car, according to Guthmiller. Between December and February, new-model cars aren't heavily discounted. Rebates are available in March, and dealerships are ready to begin selling current-model vehicles.

And, according to Guthmiller, don't get too focused on the car's price. "Focusing solely on price is frequently a disservice to the consumer," he says. Some dealerships charge exorbitant fees. For example, one dealership's car may appear to be the most affordable option—until you discover the additional documentation fees, high interest rate, or low trade-in value for your previous vehicle when compared to what's offered at other dealerships. When comparing prices between dealerships, make sure you consider the total amount you'll have to pay.

• According to Guthmiller, advertising-driven holiday sales are usually designed to grab attention and attract customers, not necessarily to offer great deals. Even if the prices are appealing, as Bratlie mentioned above, you may have fewer options.

Other Best Times To Buy a Car

It's not just about the best season. Other types of timing can help you get the best deal—or at the very least improve your car-buying experience. Consider the following strategies for car shopping and purchasing.

The Best Time of Day

If you must visit an auto dealership to test-drive a vehicle, Mike Rumple, a former auto salesperson and founder of Yourcarbuyingadvocate.com, a car-buying concierge service, recommends a less-busy morning hour. It is also preferable to call a dealership in the morning to request bids or make a purchase.

The Best Day of the Week

Rumple believes that days with bad weather are ideal for purchasing. "Perhaps they haven't made a sale all day," he speculated. He suggested avoiding car shopping on Saturdays and Sundays to avoid crowds and potentially long waits to speak with the finance manager. If you call in for a deal at 10 a.m. on a Tuesday or Wednesday, you might be the only one there.

• If you need to visit a dealer on Saturday, arrive about 30 to 40 minutes after the dealership opens to catch the attention of the sales team. According to Bratlie, the majority of shoppers arrive around 1 p.m., which you should avoid if at all possible.

The Best Day of the Month

The end of the month can be a fantastic time to buy a car. According to Rumple, the dealership may hope to meet a sales quota set by an auto manufacturer and may offer a retroactive bonus for vehicles sold that month. For instance, the manufacturer could say, "If you sell 30 cars in June, we'll give you $200 for each sale." If a dealership has sold 28 cars and it is the last day of June, the salesperson is more likely to give you a better deal in order to meet their sales quota.

Finding dealers close to their bonus targets, on the other hand, can be difficult, according to Rumple, and requires contacting multiple dealerships near the end of the month. If you're looking at a few different vehicles, schedule test drives earlier in the month to help you decide which one to buy.

Call four or five dealerships in the middle of the month. Inform them that you will be purchasing before the end of the month and request a proposal in writing or via email. "You may notice a significant difference between the low and high end," Rumple said.

• Yes, call instead of coming in person. "I advise clients to never negotiate at a dealership because it gives the dealership control and is a poor negotiating strategy. They know you don't want to leave and spend another 10 hours at another dealership, "Rumple stated.

Send a reminder to each dealership in the last week of the month: "'Hey, I'm looking to buy a car in the next two days, and your price is comparable to another dealership that's beating you.' 'Could you please send your final proposal?'" Rumple stated. There could be a difference of thousands of dollars.

Buying New vs. Used

Rumple cautioned that the information above only applies to new cars. Used cars follow a different set of rules.

"The longer a used car sits on the lot, the better the deal," Rumple explained. If a car has been sitting for three or four months, you may have more bargaining power because the dealer is desperate to get rid of it.

Typically, a dealership will discount after 20 days, then drop the price again after 30-40 days, according to Guthmiller. However, by 90 days, the price is unlikely to fall much further.

You can check the website Cargurus.com or look at the Carfax report to find out how long a vehicle has been in inventory, according to Rumple. Test-drive the vehicle in person, as you would with a new car, but negotiate pricing over the phone.

Don't show your hand when negotiating for a used car, according to Rumple. Even if it is the exact vehicle you have been looking for. If you say you like the make, model, and color, a salesperson can easily look through inventory and see that it's the only car for miles around. They're unlikely to bargain on price at that point.

Buying Cars vs. Trucks

According to our experts, there should be no distinction or hard rule of thumb when it comes to the best time to buy a car versus a truck. However, according to Bratlie, convertibles and sports cars are more desirable in the summer, while trucks and SUVs become more desirable closer to winter, when drivers may require them the most.

• Pay close attention to rebates long before you want to buy, but keep in mind that inventory levels frequently drive rebate availability, according to Guthmiller. Rebates are offered by all manufacturers, but there is little rhyme or reason to them if you don't (or can't) understand inventory levels.

Other Factors To Consider

Because they don't have a million or more people driving past the dealership every week, dealerships outside of a city's metro area may need to be more aggressive in sales and pricing, according to Guthmiller.

"Dealers must be more creative in order to attract clients, which means the price must be lower," he said. After you've narrowed down your options, look within a 45- to 50-mile radius of a major U.S. city and try some of the strategies described above.

Guthmiller cited a recent, albeit extreme, example. A dealership was charging $18,000 more than the manufacturer's suggested retail price (MSRP) for a popular vehicle, while another dealership in the next state was charging $400 less. A little searching may help you find a great deal.

The Bottom Line

While 2021 may not provide the most traditional car-buying experience, it doesn't hurt to try some of the above strategies.

And here's one more great tip from Bratlie: "Being flexible about the car is one of the best things you can do when looking for a good deal. A customer is looking to buy a car, or they are looking to buy a payment, as I always tell my sales staff. When one of those variables takes on the role of driver, the inverse is true for the other. When it comes to a specific car, the price is less important. And when someone is fixated on a number, the vehicle that gets them there becomes less important."