Buying a new car is exciting, but did you know that when you buy can make a big difference in how much you pay? Prices can fluctuate based on the time of year, dealership monthly sales goals, holiday promotions, and the release of new models. Let's break down the best time to buy a new car and some strategies to save on financing to help you drive away with a great deal.

When Is The Best Time To Buy A New Car?

While you can find deals throughout the year to buy cars, some times are better than others. Knowing when these deals pop up can help you time your purchase to maximize your savings.

The Start Of A Model Year

Every year, car manufacturers introduce new car models. When a new model rolls out, dealerships offer incentives and rebates to encourage buyers to purchase their latest inventory. If you have your mind set on a specific car, find out when new vehicles will be coming out to take advantage of deals.

The End Of A Model Year

When new model year vehicles are released, you’ll often find discounts and incentives on the previous year’s models. Dealerships are eager to clear out last year’s inventory to make room for the latest arrivals, so they frequently offer attractive deals to move those cars off the lot quickly.

During The Holidays

Holidays are prime time for car shopping when dealerships draw in buyers through big sales events and special offers. Dealerships often roll out special financing offers and cashback incentives to boost sales during these times. Some of the best holidays for car deals are Independence Day, Memorial Day, Black Friday, and New Year's Eve.

• Independence Day is a major sales weekend for car dealerships. Many dealers are motivated to clear older inventory ahead of fall releases, making it a great time to save. 
• Memorial Day is generally the best time to buy a new car over summer, as prices are typically higher during the warmer months.
• Black Friday brings big savings to car lots, just like it does to retail stores. While you may face larger crowds, dealerships often offer discounts and incentives that make it worth the effort. 
• New Year's Eve is often the last chance for dealerships to hit their monthly, quarterly, and yearly sales goals. To move cars, many dealers offer discounts and incentives, which makes it a good time to get a deal.

Early In The Week

Weekends are usually the busiest time at car dealerships, with more shoppers stopping by on their days off. Visiting a dealership during the week may help you negotiate a better price. With fewer shoppers around, sales staff may have more time to focus on you. Mondays are typically the slowest day of the week, so stopping by then may give you the salesperson’s full attention.

The End Of The Month

Many car sellers have monthly sales quotas they have to meet. That’s why shopping at the end of the month can work to your advantage. If a salesperson hasn’t met their quota, they might be more willing to negotiate and offer discounts and incentives to sweeten the deal. 

Dealership sales quotas don't always line up exactly with the calendar month. Instead of waiting until the very last day, consider visiting a few days earlier to negotiate a deal.

The End Of The Year

The end of the calendar year is one of the best times to buy a new car since dealerships are offering discounts to clear their lot to prepare for new inventory. The last quarter of the year is crunch time, and sales teams are often highly motivated to meet their yearly goals.

How To Secure The Best Financing For Your New Car

Understanding when to buy a new car can help you save on the sticker price. How you finance your purchase can make a big difference, too. Let's take a look at some strategies that can help you secure the lowest rates, reduce interest costs, and keep your monthly payment affordable. 

Obtain Financing Before You Shop

Comparing financing options before you shop for a new car helps you lock in the best loan terms, understand what the numbers mean for your monthly payment, and maximize your savings.

Some car loan terms you should know include:

• Annual Percentage Rate (APR): The APR refers to the total cost of borrowing. It includes the interest rate and any loan fees to give you a clear picture of what you'll actually pay.
• Loan Term: This is how long you have to repay the loan. A shorter loan term gives you a higher monthly car payment, but you will save on interest and repay your loan faster.

Obtaining car financing from a credit union instead of through a dealership can help you save. Credit unions typically offer lower APRs and flexible repayment options. An auto loan calculator can help you determine the best loan term for your budget.

Compare Loans

Be sure to compare financing offers from different sources. To find the best deal, research car dealerships, credit unions, banks, and online lenders. 

• Car Dealerships: Car dealerships work with multiple lenders to offer a range of vehicle financing options. It’s a convenient way to purchase and finance your new car in one place. By financing with a dealer, you may also take advantage of low introductory interest rates, generous trade-in values, and special incentives. Keep in mind, though, that the lowest interest rates are typically reserved for buyers with the best credit scores.
• Credit Unions and Banks: If you are already a credit union member or bank customer, you may qualify for a low-interest car loan. Credit unions, like Listerhill, offer personalized service, easy loan applications, and they also support the local community.
• Online Lenders: This can be a convenient option if you want to shop and compare offers from home. 

At Listerhill Credit Union, we make financing your next car purchase simple and stress-free. There are no application fees, you can borrow up to 100% of the car’s value, and flexible payment terms of up to 96 months are available so you can drive away with a loan that fits your budget.

Apply For An Auto Loan With Listerhill Credit Union

Get the Most Out Of Your Current Car

Your old car can help lower the cost of your next one. Whether you sell it yourself or trade it in, check its estimated value first on sites like Edmunds or Kelley Blue Book to make sure you’re getting the best possible offer.

Bring your estimate, along with any maintenance records or receipts for upgrades, to the dealership. Showing proof that your car has been well cared for can help boost its trade-in value, which helps you save on your new car.

Increase Your Down Payment

The more you can put down on your new car, the less you will have to finance. Aim for a down payment of at least 20%, if possible. This helps you save on interest, and it may also lower your monthly payment. 

Choose The Right Repayment Term

Car loan terms are typically three to seven years. Choose a short term, if possible, to reduce your overall costs and avoid owing more than your car is worth. Choosing a shorter term not only helps you pay off your loan faster, but it also helps you save on interest. 

Compare different terms and monthly payment amounts to see how they affect the overall cost. Then, choose the option that best fits your budget and goals.

Don’t Forget To Factor In The Extras

The sticker price is just the starting point when buying a new car. You’ll also need to factor in several additional costs:

• Sales tax
• Vehicle registration
• Document fees
• Extended warranty costs
• Optional aftermarket accessories

Some fees can be negotiated. It’s also a good idea to pay cash for these costs instead of financing them to lower the overall amount you borrow, save on interest, and keep your monthly car payment as affordable as possible.

Consider Gap Insurance

In the event of a car accident, GAP insurance (Guaranteed Auto Protection) covers the difference between your car’s current value and the balance left on your loan. It provides added security and peace of mind as your car loses value over time.

Before purchasing GAP insurance, review your loan terms carefully. If you put enough money down and only finance your car for three years, you may never end up owing more than the car’s value, meaning GAP coverage might not be worth the extra cost.

Read The Contract Carefully

When financing your new car, you’ll be given documents to sign. They outline the loan terms, the vehicle's condition, and your repayment agreement. Review these documents closely, and don't hesitate to ask questions if anything is unclear before you sign. 

Get The Best Deal On Your Next Car

Buying a new car doesn't mean you have to overpay. Timing your purchase and choosing the right financing can help you save on your next car purchase. 

At Listerhill Credit Union, we're here to make the process simple, stress-free, and affordable. Explore our car loan options and low rates to see how we can help you save.

See our Auto Loan Options & Low Rates

Additional resources to guide you through the car-buying process:

• Is It Better To Lease Or Finance A Car?
• Applying For An Auto Loan
• What Is Auto Financing?