First of all, I don’t believe anyone gets a good deal when buying a dealer demo car.

Oh, sure the car dealer will probably be willing to discount the demo car a couple thousand dollars from the MSRP.

Initially you might think why would this not be a good deal. Well, first of all if you have been around this website just a bit, I would hope that you would feel confident enough that you could get at least a couple grand off of the MSRP without having to buy a demo vehicle that probably has in the neighborhood of 5,000 miles and could be 6 months old or older.

The bottom line with dealer demo cars is that they are used cars.

Period.

The dealer will not refer to them as such but they are. But this in and of itself isn’t the more difficult problem. The problem is that at the time that these demo’s are turned over there is no book market value yet available to be able to really determine what a fair price is for the vehicle.

If you are indeed considering a demo vehicle you could, for instance, use .15 cents a mile like is used in leasing.

But you would also have to take into consideration what sort of depreciation hit you are will to take on the car. Any car is going to drop a few thousand dollars the minute you sign the papers on. So, how much depreciation should you consider has hit the car when it has around 5,000 miles on it?

A couple thousand dollar discount Mr. Cardealer?

I’m afraid you’ll have to do much better than that. So, before you get all excited about a dealer knocking off a couple thousand for you on a demo car that you are considering, do some math.

If you still (for whatever reason) are leaning toward buying that car, do yourself a favor and run a report on the vehicle. Also, make sure that the dealer has performed all of the recommended maintenance on the car … and starts you off with a completely new service of the vehicle.

In summary, you’re better off rolling up your sleeves and negotiating your own car deal on a non-demo new car.

As you know by now, having all the facts at your disposal is a key ingredient in getting your best car deal and not knowing the price point that you should begin at on a demo vehicle puts you at a disadvantage.

Does no haggle mean no deal? … next

When thinking this strategy over a couple of basic questions may come to mind. First, is the end of the year really a good time to buy a car?

Also, if I buy an end of model year car, am I not essentially buying a car that is now a year old?

Certainly, many parts of the car buying puzzle are just personal choices. But here are a few thoughts to consider and how they might fit your situation and buying style.

First of all there’s no doubt that the year end models will carry with them the most incentive for you to buy them.

All car dealers eventually must move their inventory. So, the longer the cars sit, the more heavily they will become ‘incentive-ized’. So, whether you should buy a car that is technically a year old really depends on your car buying habits.

If you tend to keep your cars for a longer period of time (say at least 5 years) then you would be better off to save the money up front on the year end model because after 5 years of depreciation, the difference between what was a new car and what was the year end model will negligible.

If, one the other hand, you are the type of person that can afford a new car on a more frequent basis you may want to forego the previous advice and opt for the newer model.

Another consideration for the end of model year car would be if the manufacturer has not made any significant changes to the newer model via technology or a body style change. If the difference is only slight, then the best deal from a buying and from a book perspective would be to get the year end model car.

And especially a few years down the road when it does come time to trade in the difference in the model years with very few changes will more than pay you back by opting for buying the end of year model instead of the new car.

What about buying a dealer demo car….

This is a question that I get asked on a fairly regular basis.

The absolute best answer there is to this question would be … the best time to buy a car is when there is a fair amount of pressure being exerted on the car dealership and sales people, either by ownership or the manufacturers.

Trust me, it all rolls downhill. And at times the pressure can be very real and very purposeful.

So what are you going to do?

Call various dealerships and salespeople and ask what kind of month they’re having and if the pressure is up high enough that if you come in you’ll be assured that your deal will be a sweet one? Well, you could take that approach… good luck. How are you going to know this?

Seriously though, the best time to buy a new car is traditionally when the new year models begin to hit the floor at the auto dealership. This begins in earnest late in the summer to early in the fall. And with each passing day that the year older models remain on the lot, the incentive for them to be sold grows in importance. It’s just a matter of the market at work. Every dealer must move their inventory.

Every year in the fall until the end of the year you’ll hear the local automobile dealers and the manufacturers themselves begin to tell you how much you can save now and how they have to make room for the new arrivals. And as for the message itself this tends to be true.

As the calendar year begins to rapidly come to a close on those in the car sales industry, the urgency will continue to increase. This is where a bit of flexibility on your part can literally save you thousands of dollars on your next car purchase.

With flexibility, I am referring to the more the better in terms of make, model, color, options, etc. As you can imagine, the closing year’s models aren’t going to be reordered or renewed.

Knowing this you may have your eye on a particular car at a particular dealer, but the risk is if someone else buys it ahead of you, you may not be able to find that exact car again. And, of course, as the absolute end of the year closes in, you won’t have the selection that you had earlier.

But having said this, you will have the opportunity to negotiate a very good car deal. This is where your flexibility saves you big money on your car purchase.

The key to car shopping this time of year is to realize that you may lose the car you are looking at to a more eager buyer and that your selection and option choices will dwindle as time goes by. Being mentally prepared for this and above all don’t get emotionally attached to any one car that you see possibilities in.

With your emotions in check, and your flexibility at its highest, buying a new car at the end of the model year is (as a general rule of thumb) the best time to buy a new car.

The end of the model year strategy next…

Don’t think for a moment that timing cannot have an affect on the quality of the car deal you are able to work.

Whether it is the best time of year to buy a car or the best time of the month to buy a car… this type of timing can impact the willingness of the dealer to negotiate… let’s just say a bit more in earnest… on your car deal. I’m telling you, no general sales manager looks forward to calling in their numbers to ownership when the numbers are lackluster or non existent.

So, go on a rainy day, or weekend, or a weekend when something big is going on in town and no one is out shopping. The end of the month is without question always best time to buy within the framework of a monthly time frame.

Go to the dealership before closing… and if the sales manager is looking at making that dreaded phone call, you may be in luck. Hey… we’re all human and there were times I wasn’t looking forward at all to calling in my sales numbers for the day.

The end of the month is always a question that I get asked. And without doubt the end of the month is a better time than any other. Look, salespeople, sales managers, and dealers get bonus money on various levels of car sales. And depending upon the level that could be reached; a couple of more car sales, it can be quite lucrative.

Nothing wrong with that at all.

At the end of the month the pressure for a final push in sales can be quite intense for all those working in the dealership. At the end of the month, dealers and sales managers will be looking over their aged unit list (we talked of this earlier) and will sometimes put cash bonuses on those older units. This means that the salesperson that sells these older units will get an extra cash spiff… always a nice thing to have if you’re a salesperson.
compare car pricing

Knowing this, you use this to your advantage. Maybe it’s not exactly the color you wanted or maybe it doesn’t quite have all the options you wanted, but it’s pretty close.

If you are flexible, you can usually work a pretty good deal on these cars. Also, don’t be surprised that when you are looking at and negotiating for one of these vehicles you might find a more generous amount allowed for your trade in as well.

From a negotiating standpoint, you may want to express interest in a vehicle earlier in the month. From that point on stop back in or call a couple of times to see if the salesperson becomes a bit more affable to your proposals on the car. As the end of the month approaches you can ratchet up your negotiating as you strive to hit the selling price and the trade allowance you are looking for.

Within the parameters of the end of the month as the best time to buy, the months that fall into the range when the new model year starts arriving at the dealership can be an even better time to buy.

Traditionally year end car sales tend to drop off a bit as consumers are spending their money on holiday items and not big ticket items such as cars. This time along with late summer can be a great time to buy a new car. The car dealer by now has a lot full of new arrivals and the previous year’s models just have to go.

They just have to go. It’s a fact of life for a car dealer.

Just remember that essentially the car you are negotiating for is now technically a year old. Take a look in the various car books or online and see if the car make, model and year that you are looking at is showing up. Even though you are looking at a new car… it has depreciated… and don’t let the salesperson tell you otherwise.

The inverse is truest in the early spring. This time of year traditionally sees consumers coming out of hibernation and sales in the car business are picking up if not brisk. With the better consumer traffic and higher demand, it’s just simple economics that it will be tougher to negotiate your best deal. This time of year generally speaking is not the best time to buy a car.

The underlying point here is for you to stay informed as to the nature of the economy. Check the sales trends for new car sales and the other local economic factors that come into play. Be entrepreneurial and go work your best car deal when the timing (that you now know) seems right.

Next… buy your car when the pressure is on…