Buying a car is a big purchase. Since it is the second-largest financial commitment after a mortgage, you should be very careful about your decision. Even if you plan to buy an old car, you will have to look over your affordability.
If you fail to pay off the debt on time, you will lose your car and credit score. However, it is not just affordability you need to look over. Just because you have money now does not mean that now is the best time to invest in a car. When it is the best time to buy a car is what everybody wants to know. Here are the tips you should follow.
When should you buy a new car?
New cars come into the market during March and September. Demand could be high this time, and hence you may not be able to negotiate for a good deal. If you are looking to buy a new car, the best time is June and December. This time car dealers have a lot of pressure to meet the quarterly sales target. Car shopping at the end of the quarter is always a nice strategy.
Since car dealers want to sell as many cars as possible, they have good financing deals. If you buy cars in February and August, you will likely get an expensive car finance deal because next month, your car will depreciate faster than the new ones. You should also visit the showroom at early weekends because dealers could negotiate prices to meet weekly targets.
When should you buy a used car?
If you are planning to buy a secondhand car, the best time will be July and August. Since new cars arrive in September, car dealers need enough empty space for them. These two months, car dealers focus on clearing old stock, and this is why you can get a good deal.
However, if you fail to have a budget to invest in old cars during these two months, you do not need to be disappointed. There are still some options. Many used cars are also put on sale in March and September. Many people trade in their old cars for new ones, so you will have a wide variety to choose from. You can get a decent deal.
Buy when demand is low
You may not have realized it, but it is true. When demand for a particular car model is high, you will not have enough scope for negotiation. Of course, when there is a lot of demand for the car, dealers will be less relenting.
This is why it is always recommended to buy a car when the demand is low. You can quickly negotiate for a good price when you purchase a car in a slow season. For instance, based on the data, the demand for SUV is generally higher in the winter season.
Therefore, you can find a better deal in the Spring and Summer season. December is considered the best time for buying a car. You can buy even new cars at very low prices because car dealers want to clear the stock as quickly as possible.
Look out for holiday sales
Like any retail businesses, car dealers also conduct sales for a particular length of time. They generally put cars, including old ones, on sale during the holiday season. Christmas, Black Friday are some occasions when they put their cars on sale.
If you buy a car during the offer, you can negotiate for a good deal. This is the ideal time for purchasing a car for those looking to finance a car with a bad credit rating. If you are looking for instant car finance at the best interest rates, try to buy a car during the holiday season.
Bide your time
It seems attractive to buy a new car as soon as it lands in a showroom, but a rule of thumb says you should wait. An impetuous act of buying can throw you into various problems.
Even though manufacturers are expert in producing an excellent design of a car, they can slip up, and most of the flaws come up when people report them.
It may take a couple of weeks to have those issues resolved. Likewise, you should not wait too long to buy a new car because the latest models keep coming in and the old models keep being obsolete.
Do not overlook your budget
Now you have to know the best time to buy a car, no matter whether you are purchasing a new car or an old car. However, do not forget that your financial capacity still plays a paramount role. If you are looking to get an affordable car finance deal, you should have a good credit score and down payment.
If you have a bad credit rating and looking for car finance with soft search, you will have to arrange a larger deposit size. In case of a good credit rating, you will be asked to pay 10% of the value of the car as a down payment, but it becomes at least 20% when you have a poor credit rating.
If you want to get a better deal when you have a bad credit rating, you will have to arrange a bigger deposit size. It means whether you buy an old car or a new car or whether you buy it at the beginning of the year or the end of the year, your credit report should be up the top scratch to get a deal at better interest rates.
If you want to know the best time to buy a car in 2021, first off, you should decide whether you need a new car or an old car. If you are looking to buy a new car, the ideal time will be June, November and December. If you are looking to buy an old car, the perfect time will be July, August and any month when the sale period starts.
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