Is There Such a Thing as a Best Time to Buy a New Car? 3 Points to Consider

So, you’re looking to buy a new car. Why wouldn’t you? After all, there are many advantages to buying a new car. You get to play with all the latest technology and gadgets that the automotive industry has to offer. Your car will last longer. And you’ll be the envy of your neighbours.

However, by timing your purchase correctly, you can save yourself money or headaches down the road…

Is there a best time to buy a new car?

From number plates, car model renewal, and dealership incentives, we show you how to work out when you should buy your new car. 

Should I wait for the new model year?

In the US, new model year vehicles often begin showing up in late summer through autumn, and by the time you hit the end of the calendar year, dealers are usually motivated to clear remaining inventory of the outgoing model year. That means you can sometimes get stronger incentives, better financing offers, or a bigger discount on a brand new car that is technically “last year’s model” even if it is still sitting on the lot with only delivery mileage.

Whether you should wait depends on what you care about most.

If you plan to sell or trade in within a few years, buying the newest model year can help on paper. When you sell, buyers and dealers often anchor on the model year first, even if the build date and features are basically identical. A car that is one model year newer tends to be easier to market, and it can hold value slightly better than the same vehicle branded as the prior year.

If you are trying to save money right now, the smarter move is usually the opposite. Buying the outgoing model year when the next one is arriving can put you in a stronger negotiating position because the dealer wants that car gone. You might be buying a vehicle that is only weeks older in reality, but you can sometimes get it for less, especially if there are factory incentives, dealer cash, or special financing tied to clearing old stock.

The one catch is selection. Waiting for end of model year deals can mean fewer colours, trims, and options available. If you want a specific configuration, you might have to compromise or order, which shifts you back into paying closer to full price.

If your priority is resale optics, waiting for the newest model year can help. If your priority is price, buying the outgoing model year as the new one hits showrooms is often where the leverage lives.

Is there a new model coming out?

Do you want all the latest features and gizmos in your new car? Then you will want to consider what model car you are buying and when it was released. Cars will usually update and renew themselves over a seven-year period, with a semi-upgrade halfway through the cycle:

• Year 1 – A new car model is introduced
• Year 2 – Minor changes are made to fix any teething problems
• Year 3 – Some upgrades, including materials and technology
• Year 4 – Minor changes or updates
• Year 5 – No changes, but may have buying incentives
• Year 6 – More incentives to buy as a new model is announced
• Year 7 – Model is completely revamped. The cycle starts again

Again, deciding when to buy a car depends on what you’re looking for when buying a new motor. Do you want the latest upgrades, or do you want to save money? If you’re looking for upgrades, you may want to buy your car in Year 2, after any teething problems have been ironed out, or after the mid-cycle update.

If you’re looking to save money, buying a new car on the fifth or sixth year after its release may be a more economic choice. Manufacturers will likely want to move stock quickly before the release of the next model, so you may be able to negotiate a lower price or take advantages of other incentives, including free or reduced car accessories.

Dealership deals

Car dealerships will have a sale period where there are a number of buying incentives to take advantage of. These periods usually fall in line with what we would expect from sales: they often take place on bank holidays, on Boxing Day, and on other retail holidays such as Black Friday.

Find out what your local dealership is offering and how it could help you save. Incentives may also be offered more towards the end of the year when sales quotas are closing. You may be able to find a great deal on a new car and take advantage of incentives during this time as dealerships try to meet and exceed their targets.

When shopping for your next car, make sure you’re buying at the right time. Whether you’re looking to save money or have fun with all the best technology, it’s clear that there are advantages to waiting for the perfect moment.

If you enjoyed this article, be sure to follow us on Microsoft Start.