You should buy a car when it is hardest to sell it. Let’s take a look at how the months of the year affect the cost of a new and used car.
How Seasons Influence the Value of Used Cars
Changes in the market are altering the motivation of used car sellers. It is reasonable to understand when is the best period to acquire a used vehicle to make the most out of this purchase. Do not forget that in every season, you can get to know all the vehicle history thanks to the FaxVIN service. So, let’s figure out during what period it is most profitable to buy a used car.
If buying a used car is not an urgent matter for you, and you can plan it in advance, it is useful to know about the seasonal factor, which can save you significant amounts.
There are two distinct seasons a year when used cars are sold like hot cakes, and their prices rise. And there are two seasons during which it becomes problematic to sell a car, which affects prices in favor of buyers.
- Spring: The demand for used cars is increasing, novice drivers who have recently got their licenses are looking for their first vehicles. They are searching for options that are not a pity to crash. Sellers have a possibility to select among buyers, so they are less prone to bargaining. At this time, it is difficult to buy a used car profitably.
- Summer: In the summer, cars are not sold so actively. People go on vacation, so the number of potential buyers is decreasing. Perhaps there is a buyer among them who would offer a good amount for a car. Therefore, selling in the summer is not always a good option.
- Autumn and winter: The year of manufacture affects the cost of a used car. Regardless of the condition of the car, with the onset of the new year, it is going to be a year older, which means its price will drop. Therefore, every vendor hurries up to sell a vehicle before January 1 and is ready to give up in price until the car becomes even cheaper.
From the buyer’s point of view, autumn and winter are the best periods of the year when you can safely choose a car from a variety of options and count on good bargaining.
In December, sellers can drop the price to have time to buy a new car in January — during this time, there are great discounts. Therefore, if you are ready to buy a car right away, you can bargain and discount 5-10% of the original cost.
What If You Are a Seller?
Every car owner reaches the moment in one’s life when there is a necessity to sell a vehicle. There can be many reasons for this:
- The car was in an accident,
- An owner does not like a vehicle anymore,
- It is outdated, or
- There is a new car that an owner wants to buy.
And it is when an owner is challenged by the question of how to sell a car. After all, everyone wants to do it quickly, profitably, and get the maximum amount of money out.
The process and speed of selling a car are influenced by many factors. There are basic rules, following which, the purchase will be profitable and fair. We suggest following the below recommendations:
- Consider the sales season: Above, we have already outlined the high seasons for sellers and buyers. However, it is still worth remembering that even though the market is not so vivid in summer, someone can still be looking for a vehicle and become a new owner of the vehicle you are selling.
- Sell honestly: Don’t try to fool a potential buyer. If the car has flaws or problems, it is better to say about it right away. This will save you from further negativity that will appear if you sell a “magnificent car without an accident and which has never been in a repair shop”, but in fact, it turns out that it is not so, to put it mildly. Therefore, tell about the condition, advantages, and disadvantages of the machine, even if it is not beneficial for you. After all, a buyer will find out the truth, and you will lose the chance to sell a car because of trying to hide the defects.
What About New Cars?
January and February are the best months to buy a new car as it is the end of the financial year for dealerships. Cars of the new year of production will start arriving in dealerships soon, so dealers make room for them and sell off last year’s cars. To do this, they reduce the cost of vehicles by 10–20% and also offer pleasant bonuses — smartphones, laptops, wheelsets.
The month before the arrival of new cars. The most tempting promotions were over, gifts were handed out, but prices for last year’s models remained low, and some can fall even more.
April and May
In early April, fresh and recently released cars arrive at dealerships. It makes no sense for a car dealer to concede in price — newly arrived cars are sold at full cost.
June and July
People are usually on vacations during these months, so the demand for vehicles falls. Therefore, they become cheaper. Dealers are looking for ways to fulfill the annual sales plan, so they offer seasonal deals, discounts, or even present tours.
August – November
In the fall, the majority of people are back from their vacations. The situation resembles spring. The demand for vehicles is growing, hence, no sales, discounts, gifts.
December is the time for New Year’s discounts. You can find a lot of attractive deals, but it is a controversial period if compared to January. Marketers make use of the shoppers’ New Year mood and go for all sorts of tricks. There can be fake discounts or quite attractive offers. Therefore, it is worth being well-informed on the market rates if you are looking for a vehicle in December.