If you’re looking to get the most bang for your buck when shopping for a new vehicle, waiting to buy at the end of the manufacturer’s current model year is a great way to potentially save hundreds or even thousands of dollars while still enjoying the satisfaction of driving off the lot in a brand new car.
You see, when vehicle manufacturers release a new model year, dealers are often stuck with “leftover new cars” from the previous model year that they need to get off their lots. This is why it’s so common to see advertisements for “model-year-end clearance” sales.
Buying a car at the end of a model year can be a smart choice and it is one of the best times to buy a new car, but only if you do your car buying research and go into the process well informed. Not sure where to begin when it comes to shopping for leftover new cars? We’ve got some advice worth keeping in mind as you prepare to head to the dealership.
1. Know When to Shop
First of all, understand that there is no universal “end of model year,” as production cycles can vary from one auto manufacturer to the next. Don’t fall into the mistaken assumption that the end of a vehicle’s model year will fall in-line with the end of the calendar year, as this is not often the case.
Instead, you’ll be better off doing some independent research; the best way to figure out when the end of a model year is approaching is to research the release date for the next year’s model.
For example, if a car you’re interested in has a new model release date for November, you would probably be at the greatest advantage to shop for leftover new cars of that model sometime in October.
In most cases, you can expect a new model year to start around late fall or early winter. It is pretty rare for a new model year to be released in the spring or summer, but it’s not entirelyunheard of so be sure to do your research.
2. Consider Your Needs When Buying an End of the Model Year Car
While it may be impossible to know exactly where you’ll stand this time next year, let alone several years from now, it’s a good idea to look to the future when considering buying an end-of-model-year car. That’s because, depending on how long you plan on having the car, it may or may not be worth the savings to buy a leftover.
For instance, let’s say buying a 2018 model year of one car will save you $2,000 on your purchase when compared to a 2019 model of the same car. However, because you like to buy a new car every few years, your 2018 model may have a significantly lower resale/trade-in value than a 2019 model (possibly several thousand dollars lower).
As a result, you may have saved some money on your vehicle up-front by buying at the end of the model year, but you ultimately would have saved more by purchasing the newer model year and trading it back in or selling it for more down the road.
3. Research and Prepare Before Car Shopping
If you’re thinking of buying an end-of-model-year car, take time to assess and determine your own needs before you head to the dealership. This means figuring out what type of budget you’re working with and whether or not you’ll need to arrange financing.
If you plan on applying for financing, what type of down payment are you comfortable with putting down? If you have some specific makes and models in mind, it can also be a good idea to check with a few online auto insurance carriers and get a few free online insurance quotes so you can have a better idea of how much you’ll be paying each month for coverage.
You may also want to make a list of “needs” versus “wants” in a new car. Make sure you’ll be able to check off most (if not all) of your “needs” with a leftover new car; it may not be worth saving a couple thousand dollars on an end-of-model-year vehicle if it means not getting all the features you want, so know how to decide when it may actually be worth it to spend a little more on a new model year or another car altogether.