New cars topped with big red bows are common in commercials during the holiday season, but is it really a good time to buy a new car?
After all, you may think all the commercials and ads are just a strategy to get you in the door, however, it turns out the end of December is a good time to buy a new car.
You've seen the ads for Toyotathon, Happy Honda Days and Chevy's Red Tag event, as just about every automaker is promoting end-of-year specials. Chei Dhara and her husband are taking advantage of these specials.
"We actually came here for the Hyundai Tucson," Dhara said while finalizing the paperwork with a salesman.
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That's a smart move, according to Kevin Frye of the Jeff Wyler Automotive Family.
"Absolutely," Frye said. "The deepest discounts off MSRP historically occur during December."
Frye said some rebates are well into the thousands.
"It can be as small as $500 upwards to $4,000 plus," Frye said.
Dealers trying to move last year's models
Randy Barone with the car auction company ACV says right now, dealers are trying to get older models off the lot. In addition, he says, dealers want your trade-in right now, as they prepare for spring buying season.
"Dealers turn those cars faster; they make better profits on those cars," Barone said.
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Before you buy, Barone says:
- Check the trade-in tax benefits in your state
- You may save money selling your car to the dealer rather than selling it on your own
- Insurance discounts kick in when you buy a vehicle with the latest safety features
"A big incentive all the way around for a consumer right now to be able to walk into a store," Barone said.
The savings site NerdWallet says many sales roll over into the first days of the new year, making New Year's Eve and New Year's Day good times to buy. Dealerships can get busy around Jan. 1, however. Experts say it is important to research vehicles and take a test drive before the actual holiday.
Dhara is getting a new Hyundai for the new year.
"The deal is on and we're taking the car today," she said,
The weeks after New Year's can be a good time for used car buyers too, especially if dealers build up a big inventory of used cars after these big year-end sales events.
And that way you don't waste your money.
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