08 Oct 08 Best Time to Buy New Cars with Most Discount? (1)

It is one of the most common questions being asked since everyone would like to get the best deal on car purchase. This question can be answerd by an easy way, and it can be answred in complicated way, too. Both answers will be given in this article, so you would be able to get both.

Here is the simple answer - The best time to buy a car is at the time both car dealers and car manufacturers would dump the cars, while you are not hurried to get the car. A little bit too simple, right? However, the answer is that simple, and that’s the simple answer.

You might feel a little confused here, and it is why we would give you the whole picture. Economics 101 says economics is based on demand and supply, and since car sales is an economic activity, it is exactly same. When a party wants to sell something, they would sell it for cheaper. On the other hand, if a party wants the item, then you would buy it for higher.

Normally, both car dealers and car manufacturers want to sell cars. However, due to difference of their goal, different approaches might be implemented. Keywords for purchasing new car is what we suggest you to read in case you have questions about terms being used.

Car discount can be from car manufacturers and car dealers. The most common way for car manufacturer to promote their cars is to give out money (cash). The money could be given directly to car dealers or to car shoppers (customer rebate). Customer rebate is pretty straight forward that if a car shopper purchases certain car and take delivery within certain date, then car shopper will get it.

For car dealers, there are many tricks out there. By the reward dealers are entitled, there are two kind of money. One is based on each car being sold, which is normally a flat rate. For example, as for now, for all 2008 Honda Accords, there is a well-known $500 dealer cash on the car. The other one is volume bonus, which is the key to determine if you could get the best car deal most of the time. Volume bonus is given when the car dealer reach the sales goal set by manufacturer (or their distributors for some brands) on certain cars (or could be number for all models). For example, let’s say a dealer could get $300 for each car they sold when they reach 1000 cars by end of October. Assume today is Oct 29, and the dealer have sold 980 cars, and if they sell another 20 cars in 2 days, they would get additional 300*1000=$300,000 on top of everything, which means the rest of the 20 cars potentially worth 0.3M for them. If that’s the case, congradulation! You hit jackpot becuase they would beg you to deal with them even it means they would make as little as possble on that one car sold to you.

Sounds exiciting? Best time to do car purchase (2)

Tags: best car deal, best time to buy car, Car Buying Tips

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