Just like fruits and vegetables, there are good times of year to buy a new car, and there are bad times. The car-selling season officially begins in March, and it runs through mid to late October - but that doesn't necessarily mean that those are the best times to buy.
The best time to lease a new vehicle is late in the first quarter of the year or early in the second, March through May. During this time, you should get great leasing rates, rebates from the manufacturers and good residual values. You may even be able to find this good of a deal as early as January. When the second quarter ends in June, manufacturers start focusing on purchasing instead of leasing. Deals on leasing are no longer offered and leasing becomes expensive.
Beginning in August or September, you will find the best deals on new vehicles. Whether you are financing your new vehicle or paying cash, this is the best time of year to buy. At the end of the year, manufacturers and dealers give the best incentives on a model. You will get a much better deal if you buy the current year's model rather than the upcoming year's model. If you are looking for a specific vehicle, especially one that is rare or special in some way, you may want to begin looking in July. By the end of September, inventory levels are low so it may be difficult to get the exact vehicle you want.
Of course, you can wait until October or November and get a really fantastic deal, but because inventories have been picked through by then you may not find exactly what you want. In our experience, it's better to get a car you like than to get a good deal because you're more likely to trade-in a car you dislike earlier than you should. If you're looking for a specific color, feature, etc., it's best not to wait too long. But if those things don't matter to you, the end of the year is a good time to almost steal a new vehicle.
One thing we come across all the time that we think is really bad advice (and is among the reasons we started this website), is that many people will tell you that buying a new car at the end of the model year is a bad idea. They'll tell you that you're basically getting last year's model, and even though you're getting a discount, the resale value is going to be lower.
However, none of those reasons should matter - you really shouldn't be buying a new car if you're worried about resale value, especially over the next two or three years. New cars are for people who intend to keep their vehicle for a very long time (5 years +). If you're only going to keep the car you buy for only a couple of years, either lease or buy used - you'll save a lot of money.
If you want a really great deal on a new vehicle, consider buying on a holiday weekend. Manufacturers spend a lot money and time on marketing, dealers are aggressive, and incentives are good. Major holiday weekends such as the Memorial Day, Fourth of July, and Labor Day are excellent times to buy a new vehicle.
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