For work reasons I must purchase a new vehicle before the end of this year. I’m trying to determine when is the best time to buy? I’ve been told by some to purchase between mid-September till the end of October as most dealerships are trying to liquidate their 2014 models before the 2015 models start to arrive. Others have told me to hold out till December as most dealerships are doing everything they can at the end of the year to make their numbers look the best. Any recommendations from experienced buyers would be most appreciated. Also was curious to see what resources you are using to ensure you get the very best price? Anyone had experience with Internet services such as true car.com or any other services to secure the very best price?
Interested to see how this plays out, as I’m in the same boat. No pun intended. However, I plan on leasing. But I would imagine the “timing” should be similar. Maybe not?
j
17 Malibu CC
88 'rude
http://www.edmunds.com/car-buying/confessions-of-a-car-salesman.html
Read this.
Mark
Pioneer 222 Sportfish Yamaha F300
Yeah, but do you consider a dog to be a filthy animal? I wouldn’t go so far as to call a dog filthy but they’re definitely dirty. But, a dog’s got personality. Personality goes a long way.
“Life’s tough…It’s even tougher if you’re stupid” John Wayne
Having spent 15 years in retail automobile sales right here in Charleston I believe I can help you out. With regards to timing all salesman are paid and bonused monthly. They may get a draw against commissions during the month, but their final pay comes at the end. As such they are scrambling to hit their bonus numbers, pay their bills, or just plain keep their job at the end of the month. Sales managers get override commissions and bonuses based on the performance of the sales force, and so they are pushing deals to hit their numbers as well at the end of the month. So, the end of the month is the best time to buy. Model year closeouts are largely the realm of the manufactures, and the dealers just advertise the rebates and special interest rates. Know which make, model, and options you want before starting your negotiations. Go to the car lot when it is not open and look over the inventory. Read the window stickers. Look up reviews on line. Rent one for a day from Avis or Hertz, or whatever and drive it around to check it out. Edmonds.com is a good resource to research dealer cost on most vehicles, and you should do your research on dealer cost. Keep in mind that the larger the list price, the bigger the mark up percentage. I would also suggest that you shop out of town. For whatever reason, sales managers look at an out of town sale as “plus” business, and will cut a car loose cheaper than they would for a local. Make sure that you negotiate over the phone with the sales manager. Don’t set foot on the lot until you come to pick up the vehicle, pay for it, and leave. Have your financing pre-approved and bring a check with you. Let the dealer compete to beat your finance deal, but DO NOT let them change any hard numbers(price or term)on the deal to do it. It’s best to negotiate for a straight deal, no trade in. If you have a trade, spring it on the dealer after the sales price has been negotiated. Of course the dealer will not price a trade in over the phone so just show up with it when you
My best car/truck buying experience: Went to the Bank of America (my bank) online site and applied for an auto loan online. So I got my amount approved ahead of time (they end up being the financer). Then, I had the “cash” and didn’t have to worry about the financing dances, and could focus on the exact price per bossdogs1’s post above. I shopped, got my prices and went home. Called the dealer and told them I was ready. Got my last truck in less than 60 minutes at the dealership without all the sales hooplaw.
Great post, Bossdog 
Personally, we don’t lease or finance anything less than a house. If we can’t write a check, we don’t buy it. 100% down and nothing a month for the rest of your life. Cost much less in the long run and makes me sleep better at night. Not saying that I never have, just that I never will again.
Capt. Larry Teuton
Cracker Built Custom Boats
“Ships are the nearest things to dreams that hands have ever made.” -Robert N. Rose
Like DillyDally said, get pre-approved then you don’t have to mess with financing. I insure through USAA. They have a buyer’s service where you tell them what you want and how far you are willing to drive to buy a car. Then dealers that participate in their program send you their best quote. I got quotes from 3 local dealers and then went to 3 non-particpating dealers for their best price. I ended up buying from a dealer that participates in the USAA program as they had the best price. The next closest price was another participating dealer and he was about $600 more. One of the non-participating dealers was about $1,000 more and the others were more than that. I would definitely give the buying service a try. I also negotiate the price of their car first. I don’t reveal whether I am paying cash or trading in. Once I get a firm price, I then discuss trading in.
“Apathy is the Glove into Which Evil Slips It’s Hand”.
Seriously and genuinely be willing to walk away at any point in the process. Several times, the wife and I have shopped and she’s asked for a price I’m sure is impossible (and, I understand cost and hold-backs, etc.). She sticks to her guns and drags me out disappointed that I have to leave the pretty metal noisy thing behind. Each time, we got a call the next day. They haven’t always come all the way down to her price. But, they have come well below what I thought they could sell the car for.
17’ Henry O Hornet
26’ Palmer Scott
Agreed with so much of the above, especially Cracker Larry’s advice (I’m guessing he listens to Dave Ramsey lol).
I would suggest that you not buy brand new. The instant depreciation on any of them is just ridiculous. You’re upside-down in the risk, right from the get-go.
… The Cross of Christ is the anvil upon which the hammer of evil wore itself out.
Just to throw out an alternative to standard bank financing for an automobile purchase. If you are a homeowner with good equity in your home, consider a home equity line of credit. The interest rate will usually be lower than an automobile rate, there is usually a very generous pay off term, and they usually only require that you pay interest on the loan for the 1st ten years or so. The interest may well be deductible from your income tax as well. When you buy the auto you write a check out of the HELOC account, and you receive immediate title to the new auto. I agree that having savings built up to pay cash for depreciating items is the wise choice, but there are times when that alternative crashes headlong into teenagers who want auto’s and college educations. I lived through two, and the HELOC was a great resource. I now pay cash for everything, but my boys are graduated and gone, and life is so much less expensive. Buying an auto that is 2 to 3 years old with service records and low mileage is the smartest purchase. You just have to be patient until the right one at a good price presents itself, and then try and steal it and drive it until it crumbles. Not exactly what all those danged car commercials are pushing is it?
Sol Mate
Mako 20B
225 Optimax
Thanks for the advise, I agree with most vehicles buying used is key, but on this it is not really an option, my company will only provide vehicle reimbursement for vehicles that are with in 4 model years. So if I bought say a 2013 I would have to turn around and purchase again in 36-months. In the long run it makes sense overall to buy current year. I am looking at 2014 used vehicles but since most dealers make their big money on used the cost difference between used and brand new is minimal at best. On top of that the vehicle I am looking at ranks at the top for resell and trade in value. As far as the loan my bank has offered be 1.9% on a new vehicle I believe a HELOC would have a higher rate not to mention origination fees and additional paperwork for the HELOC. Also some of the dealers are offering 0% interest. Fortunately my current vehicle has held it value very well so once it is sold I will owe just a minor amount between the two. The one major unanswered question is do dealers discount heavier in late December as opposed to late September or August? Not sure if most run a fiscal year that is based on calendar year or do they run on a different schedule?
Thanks Easy that was a good read there and that certainly makes sense. I was concerned about waiting till December as I figured my options could be limited. I was also concerned that I may have trouble selling my truck in December as many folks are more concerned about putting presents under the tree over buying a vehicle unless they plan to make the vehicle a present.
quote:
Originally posted by Cracker LarryGreat post, Bossdog
Personally, we don’t lease or finance anything less than a house. If we can’t write a check, we don’t buy it. 100% down and nothing a month for the rest of your life. Cost much less in the long run and makes me sleep better at night. Not saying that I never have, just that I never will again.
Capt. Larry Teuton
Cracker Built Custom Boats“Ships are the nearest things to dreams that hands have ever made.” -Robert N. Rose
agreed … great post Bossdog.
Cracker the one acceptation to me agreeing with you is Mom and Dad recently bought a new Car and got 3000.00 off for financing with the dealer and after 3 months payed the loan off. Other than that I could not agree with you more. Money in hand and about to buy the wife her second brand new car after 18 years and 142,000 miles.