When is the best time to buy a car? Whether you’re buying a new car, used car, or leasing, timing your visit to the dealership has a major impact on sale price.
Timing your purchase is one of the most important car buying factors you can leverage in negotiation to get the best deal.
Look no further, as a former Mercedes-Benz car salesman I’ll cut out the fluff you’ll see elsewhere on the Internet about timing your purchase and give you the actionable information you can use to save hundreds of dollars on your next vehicle purchase just by picking a better day to buy.
In this article, based on actual MSRP data, I will cover the best time of year to buy a car, including the best month, the best day of the week, and even the one single day of the year that is better than all 364 others (365 others during a leap year). The same advice applies to the best time to lease a car.
Rule of Thumb: Time of Month MSRP Data
The rule of thumb you can take away from this article is to aim for the end of any month. Car dealers live in a month-to-month business. What they did last month doesn’t count.
Showing up at the end of any month is going to give you a better deal than showing up at the beginning of the month.
With the exception of January (and I’ll explain exactly why January is the exception in this article later), the average MSRP discount across all vehicle categories is 6.87% on the first day of the month and 7.75% on the last day of the month (according to True Car MSRP Data compiled 2011-2015). That is an absolute percentage point difference of 0.9%.
In 2021 the average full-size car in the U.S. costs $35,000. Negotiating an extra 0.9% off MSRP would be $315. And all you’d have to do is show up at the end of the month instead of the beginning.
Of the months besides January, April was the only month where the average MSRP discount on the first of the month was the same as the last of the month. So if you’re thinking of buying in April, just hold out for those Memorial Day car sales.
Rule of Thumb: Day of Month MSRP Data
People who sell cars for a living are, people. It’s easy to forget that. People sometimes put more pressure on themselves than really exists. In a 100% commission car business it’s easy to forget there were good times before, and there will be good times again. Working through a slow Monday followed by a dead Tuesday sometimes makes you feel like you’ll never make another sale, even if it’s just the beginning of the month.
For this reason, the best day of the week to buy is Monday. This is generally the slowest day. According to 2015 TrueCar data, the average MSRP discount on a Monday was 8.1%. From the same data the average MSRP discount on a Saturday was 7.77%. That 0.33% difference on a $35,000 car equates to $115. That’s not enough to knock your socks off, but if you’re looking to squeeze every last penny out of a deal, consider it another best practice approach on how to get the best deal on a car.
What Car Should I Buy?
In general, the best time to buy a new car is going to depend on the vehicle segment.
There are many other segments than the six listed below, but these are among the most popular segments:
Best Month to Buy a Car
- Compact Car (November)
- Midsize Car (November)
- Small SUV (December)
- Midsize SUV (May)
- Luxury SUV (December)
- Truck (October)
Compact Car
To make room for new inventory, you’ll see big compact car deals for cars like the Toyota Corolla or Honda Civic in November and December while supplies last. Keep an eye out for Black Friday sales. Manufacturer rebates are designed to take some of the burden off the individual dealerships by providing the incentive for deep discounts. (See the best compact cars for 2019)
Midsize Car
Popular midsize cars like the Hyundai Sonata and Nissan Altima also see manufacturer rebates release in November and December. Models typically run out before the end of the year. (See the best midsize cars for 2019)
Small SUV
Though a popular segment, small SUVs like the Audi Q3 or Mazda CX3 are not the most popular segment. For this reason you’ll see manufacturers hold out a little bit longer before releasing rebates. By December, and before year end, look for rebates that lead to larger than normal MSRP discounts. (See the best small SUVs for 2019)
Midsize SUV
As long as gas prices remain relatively low, the midsize SUVs like the Honda Pilot and Ford Explorer remain king (not of volume, but of relative demand for the segment). For this reason you can’t depend on the inventory to be there in October, November, December. Look for Midsize SUVs at the Memorial Day car sales. It’s the perfect storm of holiday promotions and end of month timing. (See the best midsize SUVs for 2019)
Luxury SUV
Not everyone can afford a premium SUV like the Mercedes-Benz GLE or Porsche Cayenne. These won’t sell as fast as their midsize budget friendly counterparts. If you’re holding out for the best deal wait for supplies to be there in late fall and December when manufacturer incentives are released. Be aware though, there’s no guarantee these brands will have big incentives. (See the best luxury SUVs for 2019)
Trucks
Trucks, and more specifically large trucks, see deepest MSRP discounts in October. It’s common to see trucks like the Ford F-150 or Chevy Silverado 1500 with 10+% off MSRP in October as manufacturers make way for the new model year inventory. (See the best pickup trucks for 2019)
How to Buy a Used Car
When is the best time to buy a used car? Stick to the general rules of thumb about Mondays at the end of the month. Manufacturers don’t incentivize used car sales the same way they do for new cars.
There are more important factors to negotiate used car price which I cover on this site. Do yourself a favor and read the article to learn how you can avoid wasting money at the dealership with the right preparation.
Best Day to Buy a Car
As I alluded to at the beginning of this article, MSRP data suggests January is a special month. The best time to buy a car is January 1. This may sound counterintuitive to all the advice I’ve just given you, but actually, this is the culmination of the master class on timing your car purchase.
Unbeknownst to the typical car buyer, car dealers will often extend their fiscal year to January 1 or 2, depending on the calendar. This means that not only is January 1 or 2 a holiday promotion in a slow month, its financially accounted as the end of December. This means it’s the end of a fiscal quarter, and most importantly end of a year.
New Years Day car sales are the last chance for sales people to hit their monthly unit goals, and the last chance for managers to hit their end of fiscal quarter and end of year goals. Based on True Car MSRP data between 2011 and 2015, January 1 averaged the largest MSRP discount of any day on the calendar (8.5%). December 31 was the next biggest MSRP discount day at 8.3%.
The average last day of month MRSP discount over that data set was 7.7%, which means the MSRP discount on January 1 was 0.8% points less. On a $35,000 car that 0.8% New Years Day advantage over the last day equates to $280. Compared to the average first day of the month MSRP discount, New Years Day was 1.6% points less. On a $35,000 car that 1.6% advantage equates to $560.
Don’t Waste Money at Car Dealerships
Most people pay too much at the car dealership. Buying mistakes at the dealership can cost the same as a mortgage payment or even a vacation.
I help people buy a car in less time, at a better price, and rest easy with the peace of mind knowing they got a good deal. I do this by providing personal vehicle buying strategy consultation by phone or email throughout your car buying process.
How much time are you willing to spend to find out what you should be paying? How can you ever really know for sure you weren’t ripped off?
I make buying and leasing simple, fast, and less expensive by providing the answers you need now, the lessons you can use again and again, and the peace of mind for your purchase that you cannot get anywhere else.