Yahoo Finance 5 Reasons October Is a Great Time To Buy a New Car
If you’re thinking about buying a new car, now might be the time to make your move. It’s no secret that certain months of the year are better to buy a new car than others — and that time has arrived.
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Technically speaking, 2024 is still a few months away, but Scott McAlpin, general manager at Airport Chrysler Dodge Jeep in Orlando, Fla., said October is the new year for the auto industry.
“If you’ve been reluctant to purchase a new car, that makes sense,” he said. “A global scarcity of semiconductor chips is currently driving up automobile prices and creating a shortage of new vehicles, resulting in a 27% increase in car prices over the same period last year.”
As of September, the average price of a new vehicle nationally was $47,899, according to Kelley Blue Book.
If you’ve been putting of buying a new car, McAlpin thinks now is a good time.
“It is advisable to begin the car-buying process as soon as possible, because the shortages of chips are expected to impact the market for the remainder of the year at the latest,” he said. “In addition, since October is a month of savings, this is one of the best times ever to purchase a new automobile.”
Feeling motivated to visit a local car dealership? Here’s why now is a great time to buy a new car.
Dealerships Want to Get Rid of Old Inventory
A new year means new models of cars dealers want to sell.
“At this point, dealerships are looking to get rid of their outdated models as new models start to arrive,” McAlpin said. “As a result, dealerships start offering last year’s models in October at a reduced price.”
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Take Advantage of Seasonal Sales
“October often sees car sellers launching a variety of sales promotions and campaigns during the autumn season,” said John Lin, owner of JB Motor Works in Philadelphia. “These offers can be quite generous, further lowering the purchase price.”
Whether the price of the new car you want is more or less than the average of around $48,000, the more you’re able to save, the lower your monthly payment will be.
Dealerships Want To Meet Year-End Quotas
Car dealerships always want to make sales, but they might be more driven than usual right now.
“Sales teams typically have annual goals and quotas they need to meet,” Lin said. “As the year draws to a close, there may be additional motivation for discounts and bargaining to boost sales figures.”
Enjoy Tax Benefits
“Prospective buyers may want to make their purchase in October in order to maximize the potential tax benefits from depreciating their vehicle in that tax year,” Lin said.
After buying a new car, you might be eligible for a sales tax or state and local income tax deduction. This is a great opportunity to save even more money, so be sure to look into your eligibility options.
Get a New Car Before Winter
Fall is in full swing, and Peter Jones, founder of MotorAndWheels.com, noted that in many parts of the country unpredictable winter weather is on the way.
“People don’t want to vehicle shop as much when it’s cold or storms are coming,” he said. “Dealers know this and sweeten their offers to get shoppers into vehicles before winter.”
The Best and Worst Times To Buy a Car
Clearly, October is an ideal month to buy a car. Lauren Fix, a senior analyst at The Car Coach, offered even more insights by revealing the worst time to buy a car is the first week of the month — during any month of the year.
“They’ve already paid their financing on the vehicle and they’re less flexible,” she said. “As the month continues, they are more flexible — and pricing in the last day of the month is the best day.”
Overall, she said December is the best time of the year to buy a new car, but there are also a few other viable months.
“In other words, if you need a car in January, there’s no need to wait 11 months to get a good deal,” she said. “The discounts on new cars typically follow a trend that coincides with the introduction of new models.”
She said the least discounted months of the year are January, February, March and April. The months with better discounts include May, June, July, August, September and October.
Now that you know October is a great time to buy a new car, it’s time to start shopping. Conduct plenty of research, then head to a local dealership to get a new car you’ll be proud to drive.
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This article originally appeared on GOBankingRates.com: 5 Reasons October Is a Great Time To Buy a New Car
