Why buying a car in winter is a smart move Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our mission is to help you make better financial choices by providing you with interactive tools and financial calculators, publishing original and objective content. This allows you to conduct research and compare data without cost, so that you can make financial decisions with confidence. Bankrate has partnerships with issuers, including but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn Money The offers that appear on this site are from companies that pay us. This compensation may impact how and where products appear on this website, for example such things as the order in which they appear in the listing categories and other categories, unless prohibited by law. Our mortgage, home equity and other home loan products. However, this compensation will not influence the information we provide, or the reviews appear on this website. We do not cover the vast array of companies or financial offerings that might be accessible to you. SHARE: Vasily Pindyurin/Getty Images
4 min read Published March 07, 2023
Writer: Kellye Guinan. Written by personal and business finance Contributor Kellye Guinan is an editor and writer on a freelance basis with more than five years’ experience in personal finance. She is also employed full-time at the local library, helping the community to access information on financial literacy, among other subjects. Written by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate since late 2021. They are dedicated to helping readers gain confidence to take control of their finances with concise, well-studied information that breaks down complex subjects into bite-sized pieces. The Bankrate promises
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There are money-related questions. Bankrate has the answers. Our experts have been helping you manage your money for over four years. We strive to continuously provide our readers with the professional guidance and the tools necessary to make it through life’s financial journey. Bankrate adheres to a strict code of conduct , so you can trust that our content is truthful and reliable. Our award-winning editors and journalists produce honest and reliable content to help you make the best financial decisions. The content created by our editorial team is truthful, impartial and is not influenced from our advertising. We’re transparent regarding how we’re capable of bringing high-quality content, competitive rates and helpful tools to you by explaining how we earn our money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We receive compensation for the promotion of sponsored goods andservices or when you click on certain hyperlinks on our website. So, this compensation can impact how, where and in what order items are listed in the event that they are not permitted by law. We also offer mortgage or home equity products, as well as other home lending products. Other factors, such as our own proprietary website rules and whether the product is offered in your area or at your personal credit score can also impact the manner in which products are featured on this website. While we strive to provide the most diverse selection of products, Bankrate does not include information about each credit or financial products or services. The colder winters in the United States often results in less traffic to auto dealers and more pressure to reach sales targets. Dealers typically receive the next model year at the time of the summer’s end, they are keen to get the model year that was previously sold off the market. If you plan your purchase to buy it for the winter months, you could benefit from the benefits of lower sales. If you’re in the market to buy a car right now, you may also profit from a market that is recovering from the effects of the pandemic. The supply of vehicles has been increasing after the microchip shortage that occurred recently, which reduced production of new vehicles and caused prices to skyrocket. As inventory improves, prices are beginning to fall. But incentives and deals aren’t as popular than they had been prior to pandemic which is why arranging your purchase well can prove beneficial. Dealerships are working to reach quotas. It’s no secret that they operate under monthly and annual limits. These influence bonuses and commissions provided by the proprietor of the dealership as well as the manufacturers that the dealership partners with. This is the reason why the last day of the year could be the most lucrative time for sales . Salespeople are not only being pressured to hit their monthly quota and targets, they’ll also be looking to make last-minute deals for the end of the financial year. Of course, not every dealership follows a Jan- December financial calendar. However, in general you might be able to use the system to help negotiate the price. Sales at the end of the year Franchise dealershipsdealers with a direct relationship with a manufacturer — may offer on new cars from the current model year. But year-end sales are common regardless of a dealer’s franchise status or independent status. As dealers try to meet their sales goals and targets, there could be significant reductions in the price of the vehicle in addition to rebates. If you’re not a strong negotiator, take advantage of the winter sales. It may help you get the best deal. You may secure a good rate of interest. Taking out a car loan at the right time of year can also aid in obtaining a favorable interest rate. Get in touch with several lenders and ask for interest rates to ensure you are getting the best deal. Even if you have a lower credit score, it’s possible to still get the auto loan. The fact that you have a credit score will help increase the chances to get you loan approved. Remember these tips when looking for automobile loans Consider researching loan types and . Make an effort to negotiate the best conditions. Get all promises written down. Understand the small print. There are fewer shoppers cold of winter and a busy holiday season often prevent people from going to car dealers. Also, the slow pace of dealership traffic continues into February and January, making these months ideal for shopping for a car, says Mike Quincy, auto tester and writer with Consumer Reports. The regardless of the season. Quincy advises you to know what the dealer cost is and then increase it from there, instead of down from the sticker price. “You’re probably going to have a larger customer for the salesperson when you visit during the winter months since they don’t see many people,” Quincy says. “These techniques should be successful.” The latest models are coming out. Dealers usually begin receiving new models around the end of summer or the beginning of autumn. That means the current model-year vehicles that were never driven off the lot have depreciated in value. “A left-over model is a great deal for the person who drives their car into the ground” Quincy says, noting the range could be between 100,000 and 100,000 miles. And even if , waiting for the most recent models to arrive is worthwhile. After all, depreciation will still take its toll. The car will be just as great, however you might be able to get a better deal due to the fact that this is an old model. Winterized options may be available A part of your negotiation plan must include winterizing your vehicle. Beyond the comfort features, such as the heated steering wheel and seats, concentrate on snow tire and winter windshields as a part of the package. “If you’re unwilling to make the investment the safety of your family is compromised,” says Lauren Fix, car expert and editor-in-chief of Car Coach Reports. Vehicles equipped with high-performance tires might not perform as well on icy roads. The cost of snow tires is usually the same as all-season tires however, there could be additional fees related to the installation process when you purchase the car. Winter is also a good time to test drive any car you’re contemplating buying. This is especially true if you live in regions which experience winter-like weather. By test driving with snow or slush on the ground you will be able to gauge what it’s like to drive the car in the worst conditions. When to wait until spring The winter months can be a great time to get a good deal, but it’s not the only time to shop. If you’re ready to negotiate the price and , it might be beneficial to put off until spring or later to start shopping. The majority of manufacturer offers are on new cars and if you’re purchasing second-hand, there’s no need to shop in winter. Also it’s not a good idea to get caught in snowy or freezing temperatures if your used car isn’t winterized properly. And if you’re shopping for a used vehicle through a private sale and you’re not likely to find bargains in winter. It may also be harder to arrange a private meeting to check out the vehicle. Car shopping in warmer climates may actually be worse in winter since the weather is typically more comfortable. The majority of advice suggests that you reside in a region with an extremely cold winter. Therefore, you might want to wait until the temperatures rise in the spring to go shopping. If you have a winter bonus that can be used as a big down payment, wait until spring. In the end, the less money you need to withdraw and the less you’ll pay in the end, even if it means you missed the larger winter sales. This may sound counterintuitive however, dealerships will begin receiving models for 2024 in the latter half of 2023. If you’re looking for a 2023 model, hold up until the summer of. So, dealers are selling the 2024 model and you can find a great deal in comparison to this “old” version year. The bottom line In general buying a car in the winter months will allow you to get a better price. With low pedestrian traffic and a shift towards new inventory, you’ll have plenty of room to negotiate a good price. It is important to determine how much you can spend on a car prior to applying for a car loan or credit score, and then shop around for the best deal. Learn how your interest rate can impact your monthly payment and total car loan cost with our .
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Written by personal and business financial writer Kellye Guinan is a freelance editor and writer who has more than 5 years experience working in the field of personal financial planning. She’s also an employee full-time at her local library where she helps the community gain access to information on financial literacy, in addition to other subjects. Written by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate from late 2021. They are committed to helping readers gain confidence to take control of their finances through providing clear, well-researched information that breaks down complex subjects into bite-sized pieces.
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