What is the Best Time to Buy a Car?

As consumers we always want the best deal, the edge to receive the absolute best of everything. Buying a vehicle is most people's second largest purchase in their life behind the purchase of their home. And most of us only do it once every few years. So how do you assure the best price and deal on your purchase? There are infinite ways. One easily overlooked is timing. When should you purchase?

While generally nothing is set in stone in the retail business, near the end of the month is usually the best time of the month for you to purchase. Here are the ways and reasons why :

1. New car dealers have quotas and goals to meet with their Franchise. Chevrolet may ask a dealer to sell 100 trucks. If they do so, Chevrolet will pay the dealer a set amount of money per vehicle. So when a dealer may have said no to a short deal earlier in the month, that one sale could be difference between hitting that goal or not. 

2. Even a used car dealer may have incentive to move units at the end of the month at lower gross to either rid himself of an "old age" unit or a vehicle he owns way over book. If he had a good month he may take losses on a car or two instead of risking another book drop an losing even more thousands of dollars.

3. If you like the incentives offered in that month, i.e. rebates and interest rates, don't wait to see if the next month they are better. Some do run out. During the summer months some manufacturers offer a limited amount of tax breaks on their lease programs that saves you thousands in real money and monthly payment. But they run out. If you see something you like don't pass it up looking for the next better deal.

4. Salespeople also have bonus levels and personal goals they need to reach. Their pay plan may include a large bonus if they sell a certain of cars or maybe just new cars. A "skinny" deal could mean hundreds of dollars to the salesperson. Also, manufacturers pay spins to salespeople for each new vehicle sold. The amounts increase on a tier level. For instance selling 3 new cars may pay him $100 per unit. Selling 9 new cars may pay him $300 per unit retro back to 1. Meaning the ninth unit pays him $1200!

Remember these points next time you're in search of new vehicle. I would not wait to the last day personally but to each their preference. Arrive at the dealership knowing you have bargaining power!



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Get the Most for Your Vehicle

My customers always ask me, "how do I get the most for my trade in?" The obvious answer don't ever drive it, maintain it and hope it never gets damaged. The reality is there is no foolproof way to maximize your car's value and no one, not even Kelly Blue Book can predict a vehicle's value. But there are some simple steps to improve your chances and car's worth the day you decide to either trade it in or retail it to an individual.

1. Before bringing your car to a lot or putting it up for sale, wash it. It sounds simple and unnecessary but a shiny car is always worth more. Vacuum the inside also. Make your car look like the way you want the one you're buying to look. Not only will your car look good, it will remove the "we have to pay to get it cleaned up" objection from the dealer.
2. Bring your maintenance records. Not just oil changes but also any 15k and/or 30k services you may have performed. Not only does this emphasize the running condition of your vehicle but also many times dealers will devalue your vehicle by stating all the maintenance they will have to perform to be able to retail the vehicle. With your records, the dealer can no longer use this tactic to lower the value of your vehicle.
   
3. Before selling or trading in your vehicle, assure your state inspection sticker is up-to-date. This follows the thinking in #2. A dealer or buyer can point to things that may be needed to get your vehicle to state specifications, i.e. tire wear, muffler, tail lights, etc. If your inspection is renewed then your vehicle will need almost no recon from the dealer to get it to retail standards.
4. I do advise you get an idea of your vehicle's worth before selling or trading. Most consumers use Kelly Blue Book but dealers and banks use N.A.D.A. It's fairly simple to go to their website and get an idea by inputting some of the vehicle's information. But also keep an open mind. The true value of anything is what someone is willing to pay for it at that time. Neither NADA or KBB are writing a check for your vehicle. But come to the table armed with information so you can get the most available to you.
5. Lastly, it is not necessary for a dealer to know how much you owe on your vehicle for them to put a value on it. If you are financing your next purchase, yes absolutely they need to know in order to get you accurate financing options. But to just tell you what your vehicle is worth? No. The reason to withhold this information is that typically a dealership assumes all the consumer wants is payoff. If you have equity (if your vehicle's value is $10,000 and you only owe $5,000 for instance) then the salesperson will try to convince you they only have to pay you at or near your payoff for your vehicle. Your vehicle's value has no relevance to your payoff. Good or bad. The value of your vehicle needs to stand aside from the other factors in your purchase.