Auto dealers are busiest in the late summer and early fall when car manufacturers unveil their latest models and spend hundreds of millions of dollars on advertising. If you visit a showroom at this time of year, there will be many customers and excitement, but don’t expect a deal to knock your socks off. If you want to save money on your next car or truck, you should purchase when dealers are slow and salespeople and sales managers are eager to deal. Here are some reasons why the holiday season is the perfect time to buy a vehicle.
Dealers Need the Business
Auto dealers have eyewatering overheads; covering them can be a problem in December when most people shop for presents instead of cars. Dealers know they cannot compete with Santa Claus, so they usually batten down the hatches in December and wait things out. Prices in a free market are set by supply and demand, and the holiday season is when even the biggest dealers have a lot of supply but not much demand. This gives customers and dealers the upper hand, which means lower prices and better deals.
Monthly and Yearly Bonuses
Auto salespeople and sales managers make most of their incomes through commissions and bonuses, which means their paychecks take a hit when business is slow. A dealer’s sales team may have a take-it-or-leave-it attitude when the showroom is busy, but things are very different when only a handful of people walk through the door daily. If you visit a car dealer in December, you can expect your salesperson to be very happy to see you and very willing to make a deal.
Dealership Volume Objectives
Auto manufacturers offer dealers incentives to encourage them to order more vehicles, and these bonuses are often based on reaching sales objectives. Manufacturers set challenging but achievable goals, which means discounts tend to become far more generous when time runs out. If a dealer misses their objective by one or two vehicles, it could cost them tens of thousands of dollars. If you buy a car or truck in December, your deal could be the sale that puts the dealer over the top.
Factory Rebates and Financing Deals
Car factories run year-round, so manufacturers must do everything possible to keep showrooms busy. When car dealers are quiet, manufacturers offer very attractive rebates and financing deals to stir up interest and generate showroom traffic. Few people visit dealerships during the holiday season, so factory incentives are incredibly generous at the end of the year.
Get Great Service and a Great Deal
The end of the year is a great time to buy a car or truck because salespeople, dealers, and manufacturers need all the business they can get. The holiday season is also when dealership staff have little to distract them, which means car buyers get excellent service. If you want to save money and have the red carpet rolled out for you when you buy your next car or truck, visit a dealer during the holiday season.
Published by Elle G.
