When Should You Buy a New Car? The End of the Year Might Be the Best Time!

Buying a new car is a significant decision that requires careful planning and consideration. Timing your purchase can make a big difference in the deal you get. While there are various times throughout the year that can be advantageous, the end of the year stands out as one of the best times to buy a new car. Here’s why:

1. End-of-Year Clearance Sales. As the year comes to a close, dealerships are eager to clear out their inventory to make room for next year's models. This means you can often find significant discounts on the current year's vehicles. These clearance sales can offer substantial savings, allowing you to get a new car with the latest features and technology at a reduced price.
2. Sales Quotas. Dealerships and salespeople have monthly, quarterly, and yearly sales quotas to meet. The end of the year is a crucial time for them to hit their targets, which can work to your advantage. Sales teams are often more willing to negotiate and offer better deals to close sales and meet their goals. This can result in lower prices, better financing options, and additional incentives for buyers.
3. Higher Discounts and Incentives. During the last few months of the year, particularly in October, November, and December, car manufacturers and dealerships offer higher discounts and incentives to boost sales. These can include cash rebates, low-interest financing, and special lease deals. Taking advantage of these offers can significantly reduce the overall cost of your new car.
4. Tax Advantages. If you’re using your new car for business purposes, purchasing it at the end of the year may offer tax advantages. Depending on your location and tax laws, you may be able to take advantage of depreciation and other tax deductions for the current year, potentially reducing your overall tax liability. It’s always a good idea to consult with a tax professional to understand the specific benefits you might qualify for.

The end of the year offers unique advantages that can help you save money and get a great deal. Whether it’s the clearance sales, sales quotas, higher discounts, or tax advantages, buying a car at the end of the year can be a smart move. So, if you’re in the market for a new vehicle, consider timing your purchase for the end of the year to maximize your savings and drive away in the car of your dreams.

Check out The Bank of Elk River’s competitive auto loan promotion running through the end of January with rates as low as 5.5% APR*.

 

Disclosures
*Annual Percentage Rate. Rates reflect discount of .25% for automatic payments from a Bank of Elk River account. APR may vary based on credit profile, loan amount, down payment, term of loan and collateral type. Loan subject to approval. Loan approval based on creditworthiness. Additional terms may be available. Rates, terms and conditions subject to change. Offer available 11/1/2024-1/31/2025. Offer does not apply to existing The Bank of Elk River auto loans. Available on purchases or refinances of 2020 and newer automobiles.