Why now is the best time to buy a new car
December has a reputation for being the best time, but statistics suggest you may get a better deal in August -- and you've already missed the second-best opportunity for low prices.
If you're looking for a deal on a new car, August may be the time to hit the dealerships. An analysis of new-car sales data by TrueCar shows average August prices as the lowest available throughout the year: about $169 lower than the average prices of any other month.
The analysis looked at new car and truck prices each month over the past five years, and August emerged as the clear time for bargain hunting, with the average new vehicle costing $29,296. December is commonly perceived as the time to get a good deal on a new car, because it seems like fewer people would venture out to car lots in the winter, and it's the end of the year, but TrueCar's data showed December had the most expensive average price: $31,146. That's $1,850 more than new vehicle price tags in August, on average.
When you may want to buy a new car
Dealers lower prices in August in an attempt to clear out older inventory, the TrueCar analysis found. In its report, TrueCar founder and CEO Scott Painter said consumer perceptions of the best time to buy new automobiles has changed as data on the industry has become more readily available, because rather than choosing when to shop based on conventional wisdom, consumers can make numbers-based decisions by looking at price-trend data.
Following August, in which a car buyer saves an average of $716 off the annual median new-vehicle price, July has the lowest average new-car prices.
How to get a good deal on a car
Timing is only one way to save money when purchasing a new vehicle. Consumers factor a variety of things into auto affordability, like gas mileage, the value of optional features and a variety of personal preferences, but one of the things that makes a big difference in the total cost of a new car is the buyer's credit history.
If you're financing the new vehicle, your credit score will have a large impact on how much that loan costs. The best interest rates are typically available only to buyers with the best credit, and the lower your credit score, the higher you can expect your interest rate to be. If your credit is in bad shape now, and you can put off buying a new car, you may want to consider delaying your purchase until you can improve your credit, despite the low prices available this month.
When you're thinking about buying a new car, check your credit reports and scores to see if you can improve your standing before you fill out a loan application. You'll also want to build up a fair amount of savings, because a smaller down payment often corresponds to higher loan rates. To see how your credit may affect the cost of your auto loan, you can look at two of your credit scores for free on Credit.com. Keep in mind you don't know what scoring model your lender may use in evaluating your loan application, but by focusing on improving your basic credit behaviors, you're more likely to boost your scores, no matter the model.
More from Credit.com
- Are there car loans for people with bad credit?
- The 5 worst car-buying mistakes
- 3 steps to save you $3,000 on your next car
lol I will get right on that.
According to car salesmen, the best time to buy a car is during any day that ends in "y."
When to get a new government? The best time is now to remove our lying corrupt politicians from office. We should all be commenting on this crap. Our soldiers paid the price for political advancement and elections during their speedy removal from Iraq, now they are going to pay the price again for that blunder. Now look what's in the news and msn is too afraid of us to comment on:
"Several U.S. officials, speaking on condition of anonymity, said a decision to send at least 70 extra military personnel to Iraq was likely later in the day, but that internal discussions continued and a final decision had not been made."
That's just a toe-hold to get more soldiers into the country. If you read history, then you know Korea and Viet Nam both began with only a handful of soldiers sent in. I say it is time that our political leaders take up weapons and lead the way into battle the way it was in the old days. If they believe in something, then they should be out in front facing the danger and prepared to die for those beliefs along with our soldiers.
The best time to buy a car is when its a year old, has low mileage and is only 75% of the original price...
I cant believe MSN deleted that comment !!!
Anytime is the best time to buy a new car. All the dealerships are whoring them out in the advertisements on any given weekend. All the monies available today will be available tomorrow or next month.
Apparently things are slow at truecar, so they are just ramping up their exposure and advertising. What will they tell you next month.
MSn do your homework and get familiar with the car business.
If you have bad credit, it's never a good time to buy a car. Bring at least $1000 or more down, a copy of your last 3 paychecks or bank statements, a copy of your phone and electric bill, and 5 references. Buckle up for a long visit at a franchised lot.
runs just fine thank you.
If you need a car, get one, otherwise, don't make obama's dreams come true!
buying a new car today is pointless....buy a good used car and save money...are we not here to learn to save money, not how to spend it...The big question is does it fall into the following lists...the Need list or the Want list...do you really Need that New car, or do you just Want It.....
, I do not even own a car anymore....if I Need a car I just go and rent it.....Put the money in the bank, or at least put it on paying off some of your bills, like that high interest credit card...If you really need a car buy a good used one, or go to an auction and buy one....
Its NEVER a good time to buy a NEW car. A recent study found only 50% value remaining after just 3 years. My neighbor who is a car salesman said " You can charter a Helicopter for 4 with a bottle of champagne to carry you home, cheaper than you can drive that NEW car home from the Dealership"
Do the math.
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