The arrival of the new ‘16’ plate vehicles is good news for those motorists looking to find their dream car at a dream price. It may come as a surprise to many customers that they could save money on buying a new or used car depending on the time of year they purchase it.
However, many car manufacturers incentivise their dealers to push finance deals onto their customers. These affordable monthly payments may be tempting to the buyer, but they also help the dealer mask the actual price of the car.
In fact research carried out by Which? revealed that:
- Approximately 58% of car dealers offered GAP Insurance.
- Only 4% of car dealers followed FCA rules when selling Gap, minor damage and tyre cover by mentioning that the same type of cover was available elsewhere.
- GAP Insurance sold for up to £619, whereas it costs a little as £152 online.
Learn the monthly and industry trends that most affect the car trade and how best to take advantage of them below, with information provided by ALA GAP Insurance.
When is the best time to buy a new car?
- Buying a car at the end of each quarter (March, June, September and December) is usually a strong time to purchase your new vehicle. It is during these months that car dealers are pushing to meet their quarterly sales targets, and most likely to offer a deal if they are struggling to do so.
- Seasonal trends can also provide an opportunity for savings. Buying a 4×4 in summer, rather than in winter, or a convertibles in winter, rather than in summer, means you will be buying during a slow sales period where dealers are looking to sell off old cars to make room for new models arriving in the new year.
- If getting the latest model is not a priority for you, then February and August also present an opportunity for savings. In those months sales start to slow down as many buyers wait for the new number plates to come out in March and September, presenting you with an opportunity to get a bargain.
It’s important to remember, however, that older models will depreciate faster than the new arrivals, even if they are purchased around the same time.
When is the best time to buy a used car?
- March and September can be good times to purchase a used vehicle. As the new number plates to come out in these months, sales are at their peak, including part-exchange deals. This mean used car dealers should have a high number of used cars to sell, putting buyers in a strong negotiating position.
- Similarly, July and August can be a good time to purchase a vehicle as car dealers are looking to sell off their used cars to make room for the new number plates in September.
- Seasonal trends can also apply to buying a used vehicle. Buying a vehicle during slow sales months like December and January means dealers may be open to making a deal.
- Similarly, if you’re looking to buy a car sports, buying one in winter means you will be buying during a slow sales period where dealers are looking to sell off old cars to make room for new models arriving in the new year. The same also applies to buying winter vehicles in summer.
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