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Most of the Indians prefer buying a car in the last months of the year especially during festivals like Diwali. There are two reasons because of which this is the trend in India. First one is that festival days like Diwali are considered to be auspicious to buy anything as there is a belief that if you start something on these days, prosperity and luck are most likely to be around. Other reason is that there are festive discounts on cars and also on car loans which help in saving a good amount. But, is it the truth? Do you actually save on car if you buy it during last months?
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How much discount can you get on buying a car in the last months of the year?
Most of the dealers offer great deals because they want to clear the stock of the previous models as it will be difficult for them to sell it during the new year time. As the winter months are considered to be slowest seasons in terms of buying or selling cars without discounts. However, almost all banks and NBFCs reduce the rates on car loans as this is the most preferred time for the customers to buy a new car or even a used car. And it is generally observed that the car selling and purchase during this time is the highest as compared to the rest of the year. So, the car dealers, as well as the finance providers, become a great combination to save money. Thus, you can compare all the deals and choose the best one to enjoy maximum discounts which are variable.
But, it can not be said that it is the best time to buy a car as the end of the model-year is more beneficial. Let us see how.
What if you buy a car at the end of the model year?
As soon as the new model of the car is out or is announced, the car dealers want to clear their last year’s stock. However, not every time these dealers succeed in getting rid of the previous year’s model and if a 2017 model is still on the lot when a 2018 model arrives, they offer heavy discounts on the older models. These discounts would include negotiation on the car price, car gadgets like seat covers, music system, cashback offers, good lease deals, etc.
It actually depends on the purpose for which the car is being purchased. If you are buying a car that you wish to use for many years, end of the model year will be the best time as you can save money and the depreciation and the potentially outdated design likely will not matter to you. But, if you believe in following the trend and change your car after every 2-3 years, you should wait for the new model year. Because, if you buy last year’s model, you will miss out getting all the latest gadgets you desire. Also, buying a car in the new-model-year increases the value of the car which means you can sell it or trade it at a higher price.
How much do car prices drop when new models come out?
You do know that the car selling agencies have a different calendar from us. Their calendar depends on the demands and whenever the demand is high, they have the option to earn more. However, when the demand is low like the winter season, they still make the profit by providing attractive discounts. But, you can really get a better deal on a new car if you buy it at the end of the model year. Dealers look forward to clearing their last year’s model when a new model is around the corner. Most of the dealers bring out their new model year vehicles in the late summer and continue their product launches throughout the fall. As a result of which, there are better chances of bargaining because dealerships are trying hard to unload any leftovers from the previous model year.
10 Tips for buying the car at the end of model year
If you are planning to buy a previous-year-car, you can get a good deal on a new vehicle. However, there are certain protocols that are helpful. Read here some of the car buying tips at the end of the model year.
- Compare the previous year model with the new year model of the car.
- Go for freshly updated models.
- Be flexible as you have limited options.
- Research properly on the leftover lot.
- Don’t delay in finalizing the chosen car as you might miss it.
- Plan to use the car for years to make the most of it.
- Verify that the new car warranty won’t take effect until the date of purchase.
- Don’t shy in bargaining as this is the best time to do it.
- Focus on the total cost involved instead of the car price.
- Maybe buying a lightly-used car is not a bad idea.
Thus, with all the above information on which is the best time to buy a car, you must have got a clear picture that it depends on what you want and what you get. So, be it any time of the year, you can compare the different discount times and see which one will be most beneficial for you.