If you are looking to purchase a vehicle, this time of year has some of the best car deals. Finding a great deal won't be difficult considering new year models coming in and the deals are in abundance for previous year models. New vehicle companies are offering some of their finest lease and purchase deals, and with so many customers trading in their vehicles, it boosts the used car market as well.
You can brace yourselves, the festivities are coming. Extended hours, large profits, and hours of adventurous shopping.
While clothing, sports, and electronics are often top-of-the-mind, what about a bigger buy like a car? Do vehicles have Black Friday and Christmas deals?
Ultimately, what about this moment of year? Is it the best time to purchase a vehicle? It tells yes to conventional wisdom. Before searching for a vehicle this holiday season, here are some things to take note of.
Loans
While longer loans make payments affordable, borrowers may be at risk of being "upside-down," or owing more than the car is worth. This can be a problem if, during the loan term, the owner wants to trade in the car for a new model or hits a financial bump and needs to quickly sell the car.
Sensible customers understand that there are good times to purchase during the holidays and mid January because retailers are willing to unload their previous model year cars. As previous year models may be almost identical to a the new model, but it may be provided at a steeper price as it is considered to be an elderly year.
Seasonal Car Sales
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Car Sales peak in the spring and summer and decline as the weather becomes colder and people don't want to be out looking for cars. A study done by automotive website, CarGurus, research demonstrates that revenues are reaching their smallest level just after the holidays, then climbing rapidly beginning at the end of January.
How can I get the best price on a new car?
Don't be pressured to buy anything just because it's the weekend of holidays and sales are being promoted by dealers, Mr. Bartlett said. "Buy when you're in the right time," he said. "There will always be a chance to buy another car. There's no car shortage." If you're ready to shop, do some online homework on models and prices before visiting a dealer to reinforce your negotiating position and reduce stress.
How can I judge if I find a car affordable?
A good thumb rule is "20-4-10": put down at least 20% in cash, stick to a four-year loan, and aim for a monthly payment that is no more than 10% of your gross income.
If financing is a must, the next best option is a loan term of at most 48 months at a rate as close to zero as possible
Unfortunately, many shoppers are blinded by cars that cost more than they could afford. So, keeping in mind long-term financial goals is a good idea. Used cars especially a reliable, a few-year-old model are often a smart compromise. Recent safety features will still be available but at a more affordable price.
It is important to remember that while the Holiday season brings a lot of joy and deals for shoppers, you should still consider all of your options carefully before making the final decision. If you have any questions during the shopping process, Fam Vans is here to help. Contact us and see how we can help you get the best deal this Holiday Season.