Purchasing a car is a huge decision. Since most buyers finance, planning for this long-term commitment is a must. Are there ways to save in the long run? When is the best time to buy a car? Get ready for some money-saving tips, because the optimum time to get a new ride is now.
Two words: Sales quotas
The closer to the end it gets, the more pressure there is to meet the year’s sales quotas. December is the best time to buy a car because dealers are more likely to bargain. Additionally, they offer their highest incentives as a last effort to get you to sign.
Making room for new inventory
Another reason you should seriously consider purchasing a car in December is because of the dealer’s logistics. They have to make room for the next year’s inventory. They can’t add newer models to the sales floor without the older models leaving first. Since it’s easier to sell you a car, than it is to move it to a different holding lot, you get the upper hand.
The IRS allows you to deduct the sales tax you paid on a car purchase. Regardless of the time of purchase, you can still claim your deduction. So why December? The reason lies within the time gap. December 2019 to tax season 2020 is shorter than if you would’ve purchased the car earlier. It makes sense when you need your cash available to you, rather than being held waiting for the deduction.
Are you considering a new car?
If you’re considering a new vehicle, now is the time to act. December is the best time to buy a car in comparison to any other month. Remember to ask about your options, and create a new car budget. Using the simple tips above, you’ll be sure to appreciate your purchase and get the best deal of the year.