Is the best time to buy a car at the end of the month? – Or is it during the Holidays?

I am often asked "when is the best time to buy a car?"  Traditionally it is the end of the model year and the end of the calendar year - meaning the end of August and the end of December.  In addition, the end of each month is a better time to buy since manufacturers and dealers alike will offer greater savings in an effort to reach their own sales goals.  Certain high profile consumer holidays also create a predictable buying opportunity. 

Memorial Day is one of those times which is a combination of a consumer holiday, a three day event (when most people are off work and can go shopping), and which occurs at the end of the month.  All together - it makes a perfect storm for a great sales event. 

Interestingly, the timing of this holiday also kicks off the Summer selling season.  And in case you didn't know, more consumers purchase and lease between May and October than from November to April.  This makes Memorial Day a kick-off of the New Car selling season.  Memorial Day has some unique attributes that a you could take advantage of.  These include:

1. Larger rebates are offered during this weekend (typically most expire on June 1st) so hurry!

2. Lenders are making loans with higher advances making it easier to put less money down on your loan and/or helping you add negative equity to your new loan.

3. Lenders are lending more money to those with credit issues.  More people are getting approved, for higher amounts, at lower interest rates.

4. New 2011 models are being introduced in higher volume segments.  Take for instance the 2011 Hyundai Sonata, it is available for sale with an all new re-design and an extremely low lease price.  It makes for an attractive choice while also creating the next consumer benefit (see #5 below).

5. Where a 2011 model is introduced, there is a huge discount on the similar 2010 models as well as rebates and low-interest financing.  Consider the 2011 Sonata, mentioned above, well the 2010 now comes with 0% financing and large discounts.  Because both models are offered side-by-side, it creates a buyer's market - since both the manufacturer and dealer are under pressure to clear out the remaining 2010's and introduce the new 2011's into the marketplace.  It's a dual strategy where the you win no matter which you choose.

6. Any remaining new 2009's can be purchased on the "super cheap."  If you are a bargain hunter and want to own a vehicle for 7+ years - this might be the perfect choice.   Consider a new 2009 left-over.  You'll purchase it for the price of a used 2009 and still have a new car, with a new car warranty, and new car financing.

7. "Program Cars" are becoming more prevalent.  "Program Cars" are current model year used cars.  For instance, a used 2010 model would be considered a "Program Car."  As the 2011's are rolled out, you will see more 2010 used vehicles for sale - these are vehicles that might have been used by a Rental Car Company, a Corporate Fleet, or the Manufacturer as an Executive Vehicle.  The benefits of purchasing one of these vehicles are: (a) they are used - so you are paying a 'used car price.'  The vehicle will cost 15-20% less than its new car alternative; (b) these vehicles still have most of their manufacturer warranties remaining; and (c) these vehicles qualify for traditional new car financing rates - given their year.

8. Used car prices remain strong.  As a result, new cars may be less expensive to own over time as compared with used cars.  Considering the annual cost of ownership for a vehicle - including depreciation, fuel, insurance, maintenance, and repairs - a new vehicle with a discounted price (like those listed above) may cost less than a used vehicle if  you own the vehicle 5 or more years.

9. Because used car prices remain strong, your trade may be worth more than thought. 

10. Finally, switching to a new vehicle offers the opportunity to put yourself and your family in a safer, more fuel efficient, greener, more technologically advanced, better riding, more reliable, and better smelling vehicle than the one you are currently driving.