If there’s one holiday tradition you can count on in our ever-changing world, it’s that by the end of every year, you’re going to see a commercial for a car with a giant car-sized bow on top of it. While I’ve never personally been gifted a car with a giant car-sized bow (and feel free to change that for me), it’s true that now is one of the best time to go car shopping. Many automakers offer sales and financing deals on cars right now to help push them off the lot as the new model year cars roll in. If you’re in the market for a new or used car, this time of year can be a great time to buy for added savings, but only with the right plan. Arm yourself with these buying tips when car shopping over the holidays.
Tips to buy a car during the holidays
Time your purchase right
Aim to purchase near the very end of December, as salespeople scramble to meet monthly quotas and annual sales goals before the year concludes. Christmas Eve and New Year’s Eve are excellent times to get the best offers. Model year-end clearance sales will also net steep discounts—just be sure you’re comfortable buying the prior year’s model if going this route.
Get a head start at home
Research is your best friend. By the time you arrive at the dealership, you should already know the following:
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Your budget
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Whether you’re leasing or buying (Although you should probably buy, not lease.)
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Your top choice (plus two back-up models)
Research market prices for vehicles using price-comparison sites like Edmunds or Kelley Blue Book. Gauge the fair market value of the make and model you’re interested in.
In terms of payment, the gold standard is to pay for a car in cash and in full, but that’s not a realistic possibility for all buyers. Instead, opt to get pre-approved for an auto loan from your bank or credit union and compare the offer to dealer financing. Your credit score plays a major role in determining your interest rate and whether you’ll get approved. Before applying for a loan, check your credit score so you know where you stand. If it’s low, here are ways to boost it.
Another holiday-specific tip is to look at year-end inventory on last year’s models. As the 2024 models come in, dealers will be looking to offload 2023 and even 2022 models still sitting on the lot, giving you negotiation power.
Arrive informed about the deals
Look out for holiday-exclusive pricing packages and cut preferential financing rates. Monitor sales highlights and fine print exclusions on manufacturer and dealer websites. Check to see if manufacturer financing or customer rebates are available for the cars you’re considering. Keep in mind that some holiday-related manufacturer incentives might actually be in place before the holiday weekend and may extend past it.
Be decisive
Time to put all your research to use. Cars are hot commodities, so be ready to pull the trigger at the dealership. You should mention any competing offers you’ve received to use as leverage, even if they aren’t an exact apples-to-apples comparison. Then again, the old days of walking away as a negotiating tactic are over for the time being—by the time you come back, your car will most likely have been sold.
One area to be flexible: Car color and trim options. Opting for colors/options that aren’t as popular can save you money as the dealer may be trying harder to move those vehicles.
If you’re trading in your existing vehicle, its age or mileage will determine its baseline value regardless of whether it’s the holidays or not. But you gain leverage negotiating the purchase price for the new vehicle during peak sale promos. Highlight applicable retail rebates and reference year-end volume goals salespeople are striving towards when pressing for the lowest overall price. Review which dealership fees you can and cannot avoid.
The festive chill in the December air doesn’t have to dampen big-ticket purchases—with the right mindset, you can unwrap a sweet new car deal this holiday season.
Source: LifeHacker – How to Get the Best Price on a Car During the Holidays
