Car Sales Slump and Discounts Rise: Is It the Right Time to Buy a Car?
Most of the time, when people think about making an investment, they wait for the prices to drop so they can make a full profit off it, but is that the right way to go? Should you really think of investing when you see the market prices go down?
When specifically talking about cars, you might have to consider the seasonal factors, plus the years the car has been running or the year it was manufactured. The car industry sees a lot of fluctuation in prices due to changing market trends.
Recently, there has been a drop in the prices of cars and dealers have provided and promised a lot of discounts for the customers who deal with them these days. Is there another hidden incentive?
Here’s what you can do:
- What mostly happens is that near February and August, you will see a lot of car prices going down and dealers offering discounts to people. This is because cars with new number plates come out in March and September and the car dealers have a sort of garage sale to rid themselves of the older versions for whatever price they can sell them off. Customers think that it is a good investment but then are left with a lower resale value because of the newer model’s arrival.
- In the last days of June and December, it is a better option to buy the car as it is, after the new plates have come and dealers are trying to meet their quarterly targets, offering better prices to the buyer.
- If you are thinking of a convertible, getting it in the winter will be a much better profit to you and if you can keep it in good condition till the summer, you can sell it off at a profit as they are in more demand.
- Similarly, if you are thinking of getting a four-wheel drive vehicle, it is better to go for it in the summer. This is because these cars are in demand in the winter because of bad weather and snowy and icy roads. Besides this, a four-wheel drive performs well in all kinds of weather so there isn’t much of a loss there.
- If you are looking for a discount on a better car, try going on a weekday as that is the time when the dealer lots are empty, and they will be keen on selling the car to the few customers that come in. This opens up a lot more room for bargaining. Take some time off work when considering buying a car and go to the lot on a weekday.
When offered a discount at a car lot, always remember that there is an incentive that is attached to it. Either the dealer is just getting rid of the cars to make room for the new models and you will be stuck with the older ones or they are just trying to meet their targets and you can bring the price much lower. If you are not keen on selling the car as soon as you buy it, go for it in the discount season, but make sure you check the car out thoroughly, so you don’t get hustled for your money and get handed an old lemon.