Planning to grab your first car this holiday season? Or maybe hoping to upgrade from the age-old current one? You should know that the retailers are ready to capitalize on the holiday shopping craze, manufacturers and dealers are also not far behind with holiday deals of their own. Going for a new vehicle in December has become an almost holiday tradition for many Americans nowadays.According to Matt DeLorenzo, senior managing editor of Kelley Blue Book “The end of the year has become quite a big sales event, A lot of manufacturers are loading up their best deals for the end of the year.” So, if you are also one of the active participants in this crazy time of the year, here are a few tips for you.
Look for local car deals
Every year local car dealer offer discounts, that automakers aren’t advertising nationally. So make sure to head to a local car-shopping website to gather information before physically visiting the shop.
Last years models are not always best deals
First time or inexperienced car shoppers often assume that dealers will give up on last years vehicles to get them off the lot by the end of the month, but in reality, that’s not always the case.
Dealers will often carry last year’s model’s vehicles into the following calendar year. So, before getting caught up in the big savings hype think rationally. Since its last years model the tech might be a little backdated and the price might go down even more couple of months later.
So, if it comes down to the choice between the last year’s model and slightly higher prices next years model, keep in mind that the vehicle might be a better deal because its resale value will hold up longer and its technology might be notably upgraded.
The sedan is the most affordable option
According to Morgan Stanley, only 3 out of 10 buyers are going for passenger vehicles. Americans are more leaning towards SUVs, crossovers, vans, and pickups. As a result, the price of Sedan’s is falling. For example, the average passenger car cost $20,429 in November, compared with $28,765 for the average compact SUV, according to Kelley Blue Book. The price gap is increasing every year.
Large sedans might offer the best deals. According to Kelley Blue Book, December deals include $10,000 off the 2018 Cadillac XTS Platinum, $5,750 off the 2018 Chrysler 300 and $5,500 off the 2018 Ford Taurus.
Take advantage of the compact, midsize SUV craze
People’s demand shift from cars into crossovers has attracted most automakers to offer compact or midsize SUVs or crossovers. Popular choices include the Honda CR-V, Mazda CX-5, Chevrolet Equinox, Nissan Rogue, Toyota RAV4, Volkswagen Tiguan, Subaru Forester and Ford Escape.
As the competition for compact and midsize SUV segments hitting up, automakers are offering a discount on those models to increase their market shares.
Time to go for hybrid or plug-in
Since the electric automobile market is going through rapid innovation and improvement, their resale values are not holding up. Want one? This could be your moment. You can find a decent used electric vehicle well within $10K.
Don’t hesitate to pay more
If you’ve been out of the market for just a few years, you will be surprised by the fact that how much the price is increasing every year. Due to the facts like interest rates are rising and loans getting extended for longer periods, the average used-car payment recently hit $400 monthly for the first time this year.
Get pre-approved for a loan
No matter what time of the year it is, before heading to your local dealer, consider getting approval for a loan at your financial institution. Then you can use the interest rate advantage and bargain a better deal with your dealer.
Don’t rush into conclusion too soon and buy one from the first lot you visit. Do proper research and remember, there will always be some desperate dealers who would want to clear their lot before the end of the year.