Time Your Car Purchase to Save Thousands
When an all-new or redesigned model is first introduced, there's a limited supply and a much larger demand for the vehicle. A lot of car shoppers don't realize how much that affects the price.
For example, the all-new Toyota Prius C has just started showing up on dealer lots, and although the car should cost around $20,000, some dealers are already marking them up by $7,000!
That's completely absurd, but some people are willing to pay that much extra. Don't get caught up in the excitement, just be patient.
Generally, it's best to wait at least four to six months for supplies to catch up to demand. Some vehicles will remain hard to negotiate even after you wait several months, but at least you won't pay as much as you would in the initial "excitement phase".
A great example of how far prices can fall is with the Chevrolet Volt. When it was first introduced about a year ago, some dealers were charging $10,000 or more above MSRP. Now, a year later, GM had to stop production for 5 weeks due to weak demand.
You can now buy a Chevy Volt for below invoice price. That's the power of timing your purchase.
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