What is a Leftover Model?
The new models usually start arriving between August and November of each year, but some arrive much earlier so don't assume leftover models are only found towards the end of the year.
For example, there were several 2012 models that arrived as early as April of 2011, including the BMW 7-Series, Ford Focus, and Ford Mustang. Manufacturers want dealers to sell leftover models as quickly as possible so they don't take demand away from the newer models.
One key aspect of leftover models is that there are limited quantities. The manufacturer typically stops production a month or two before the new models arrive on dealer lots, giving themselves time to re-tool the factories for the next model year.
Since there is a diminishing supply of leftover models, car shoppers need to weigh the consequences of waiting too long against the likelihood of price discounts. Typically, the longer you wait to buy a leftover model, the better the deal.
But there are two downsides to waiting too long: First, the colors and options you desire may not be available since the least desirable units are left for last. Second, the longer you wait, the less the car is worth due to depreciation.
A leftover model is essentially treated as a 1 year old vehicle, even if the model year is current. Therefore, it's not a good idea to buy one unless you plan on keeping it for more than 5 or 6 years. Otherwise, the depreciation cost will be hard to absorb.
The advantage to buying a leftover model is, of course, the deep discounts you can get. I've seen cash rebates and hidden dealer incentives as high as $10,000 on some slow-selling leftover models - usually ones that have been sitting for months, and sometimes even over a year.
But this doesn't mean that every leftover model will come with a great deal. Some leftover models sell well without the need for incentives, especially if the next model year is a carryover. The best deals on leftover models are found when the new model has been redesigned. This usually occurs once every 4 to 5 years.
If you don't mind driving an older design, and plan to keep the car for a long time, your best bet is to buy a leftover model when a redesign occurs.
3 Steps Every Car Buyer Needs to Take to Save Maximum MoneyThe key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:
Step 1 Get Prices From My Trusted NetworkSelect the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Step 2 Get Prices From TrueCar / CarsDirectTrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.
Step 3 Complete my ChecklistFollow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid