Sometimes, people think that making a large purchase right after the holidays is not a good idea, but for those interested in a new vehicle, January is the best month to make purchase. The reason for this comes from many factors that affect car sales year-in-year-out.
If you can’t afford to pull the trigger on a new car this month, you should, at least, understand the reasons that make January a great time to buy. If you want to upgrade your vehicle and also want to maximize savings on that procedures, then January is definitely the best moment of year to do that.
1.Slow Month for Retail
The free spending of the holidays causes consumers to tighten their belts with the onset of the New Year. As people struggle to pay off Christmas debt, extra money goes toward smaller comforts, while expensive items remain unsold. Retail analysts have long pinpointed January as the best month to buy major appliances, and the same rationale can inform strategic vehicle purchases.
Despite the fact that January is a slow month, car dealerships still have to make money. Because of this, vehicles occupy a buyers’ market, with salespeople eager to close deals and meet their quotas. This rationale applies to all winter months — not just January — with great deals on cars also available in February and early March.
The trends that inform January as a slow retail month apply even more to luxury cars. With spending flat, the most expensive vehicles become the hardest to move.
If you are specifically in the market for a flashy “summertime” car — something in red, or with a sunroof — the cold months are absolutely the best time to buy. The previous month’s end-of-year clearances also create deals for expensive vehicles.
As dealers slash prices to meet their end-of-year quotas, consumers snap up the cheapest cars first. Come January, it’s the luxury cars that become the leftovers.
Though the “model year” traditionally rolls over in the fall, there’s no denying the mental association of a new calendar year. Any 2018 models still on the lot in January 2019 will need to get sold, and fast, if dealers want to realize a return on their investment.
Car dealers make the most money on the newest of cars; if a car remains unsold more than a full year after its debut, buyers can expect huge savings off the sticker price.