Yahoo Finance I’m a Car Dealer: Here’s Why You Can Get the Best Deal on a New Car During Summer
If you’re in the market for a new car, now is the time to buy. Car dealerships typically pull out all stops during the summer months, and this year is no exception.
Be Aware: Car Experts Say Don’t Buy These 7 SUVs That Cost the Most Money Over Time
For You: 7 Reasons You Should Consider a Financial Advisor — Even If You’re Not Wealthy
Generally speaking, the price of new cars is trending downward. As of May 2024, new vehicle prices were an average of 1% lower than in May 2023, according to Kelley Blue Book.
“Summertime has multiple factors that play into how it can be a great time to get the best deals,” said Mark Beneke, owner at Westland Auto, Inc., in Fresno, California.
If you’re planning to buy a new car soon, he shared four reasons why this can be the best time of the year to go for it. Keep reading to find out why car dealerships offer big summer savings.
Sales Projections & Targets
The number one reason you can get the best deal on a new car during the summer is dealerships’ sales projections, which loops all other factors around it, Beneke said.
“Like all businesses, dealerships have goals they aim toward and most often these are tracked quarterly,” he said. “The first quarter tends to see a much bigger demand for vehicles, leaving the second quarter at risk of not hitting quotas.”
He said this is true for both new and used vehicles. “Because of this, dealerships implement more incentives that will spark demand.”
Good To Know: 5 Car Brands With the Most Reliable Engines
Style Changes
Changes in the style for upcoming vehicle models is also a reason for the prevalence of summer discounts.
“These are typically released in the fall or early winter,” Beneke said. “As a result, more people are interested in the new body style which drives the market value of the older body style down, even if it’s still new.”
If you’re not concerned with buying the latest style, you might be able to enjoy notable savings.
“To counteract that, dealerships try to get ahead of the curve by offering significant discounts and incentives,” he explained. “This can work in your favor in both the new and used car market.”
Reduced Competition
Summer isn’t typically the busiest season for car-buying, due to a lack of time and money, Beneke said.
“Most people do not have purchasing power as they have just come out of tax time and spent their refund,” he said. “School vacations coincide with the summertime and most people use this time to take vacations as a family.”
Therefore, taking advantage of the slow season can allow you to drive off the lot for less.
“Both of these things leave less buyers in the market, meaning dealerships are more willing to capture your business and therefore give you more leverage to negotiate.”
Better Promotions and Incentives
“As stated earlier, to spark demand in the market, dealerships use promotions and incentives that will peak buyers’ interest and generate traffic,” he said. “The giant holiday sales events like the 4th of July, Labor Day, summer blowout sales, etc. are all ways to drive more demand by reducing prices, increasing value or making the sale easier through reduced down payments, APRs, increased trade values, etc.”
Clearly, the prevalence of these promotions during the summer months is designed to get your attention — but don’t look away.
“All of this can work in your favor and get you a great deal during the summertime,” he said.
The Best Car Deals of Summer 2024
“As the American car manufacturers are pulling out of the sedan/coupe market, the Asian car market is competing heavily to dominate the space,” Beneke said. “Mazda, Hyundai and Kia have made a big push to capture consumer attention through promotions and changes in their vehicles that provide more value and make their vehicles more attractive to American drivers.”
If you’re not already set on a certain brand, he said these are worth checking out.
“I would encourage anyone in the market to at least look into these brands as they can be a great, dependable and cost-efficient choice,” he said.
If a gas-powered vehicle isn’t on your radar, he said there’s also deals to be had on electric vehicles.
“While electric vehicles are steadily becoming more accepted and sought after, many models have been unable to securely place themselves on the map,” he said. “If you’re looking to buy an EV, you’ll find plenty of incentives and discounts being advertised on brands like Hyundai, Kia, Ford, Chevrolet, Honda and even Toyota.”
Now that you know why summer is the best time to buy a new car, it’s time to head to your local dealership and start test driving. There’s no need to pay more for a new car later in the year, when you can score a great deal this summer.
More From GOBankingRates
9 Things You Must Buy at Big Lots While on a Retirement Budget
I'm a Mechanic: These 4 Cars Have Engines That Could Die on You
This article originally appeared on GOBankingRates.com: I’m a Car Dealer: Here’s Why You Can Get the Best Deal on a New Car During Summer
