It’s long been common consumer knowledge that the end of the year is the time to get the best deal on a new car. New research from Edmunds.com might suggest otherwise, however.
Experts at the auto research site are calling the coming weeks a “sweet spot” for shoppers on the market for a good deal on the car of their dreams. The reason – according to Senior Analyst Jessica Caldwell – is because, in the final days of summer, dealers are just beginning to kick off sales on their 2013 inventories to make way for 2014 models.
“Shoppers typically will find the perfect blend of discounts and selection during this late-August-to-September time period,” says Caldwell. “If they wait much longer, they might be able to find better discounts on a new car, but they’ll find that inventory of those vehicles will be limited.”
It’s simple: Imagine you’re at your favorite department stores’s annual white sale. You don’t want to be one of the last people to browse the linen, right? You’ll be probably get a good deal, but the tradeoff is you’ll be left picking through the least desirable items. Caldwell says the same goes when it comes to timing your new car purchase and ultimately the price difference between a sale in August and one in December may not be that worth it, especially if you’re stuck with unattractive choices.
It seems as though some consumers are already taking notice of deals on 2013 models and acting fast. Last month, the average discount percentage on a brand new 2013 vehicle was 12.7%, compared to a discount percentage of just 7.7% for a new 2014 vehicle. As a result, Edmunds projects that most new cars sold through September will be 2013 models.
Caldwell advises that consumers on the market for a luxury vehicle, however, act fast. “Because their consumer is generally more into having the latest model with newer technology, luxury automakers will be especially aggressive about getting rid of their old inventory – even now,” she says.
Photo Courtesy, Brian Teutsch.