When is the Best Time of Year to Buy a New Car?

Buying a car, whether new or used, is a significant investment that requires careful consideration. In Canada, the automotive market is influenced by various factors, including seasonal trends, economic conditions, and consumer demand. Understanding when to buy can help you save money, secure better financing, and get the vehicle that best suits your needs. This article will explore the best times to buy a new or used car in Canada, considering different aspects such as seasonal trends, end-of-year sales, economic factors, and dealership promotions.

You’ll notice that some of these periods overlap too, making certain dates extra advantageous for getting a good deal. 

Towards the end of the year

The end of the year is widely, September to December, regarded as the best time to buy a car, whether new or used, in Canada. Several factors contribute to this:

a. Dealer Incentives and Discounts

As the year comes to a close, dealerships are eager to meet their annual sales targets. To do so, they often offer significant discounts, incentives, and rebates on their existing inventory. These deals are particularly appealing in December, when dealerships are under pressure to clear out old models to make room for new ones arriving in the new year.

For buyers, this means the opportunity to purchase a car at a lower price than at any other time of the year. It's also worth noting that some manufacturers offer additional incentives, such as cashback offers or low-interest financing, which can further sweeten the deal.

b. New Model Releases

Car manufacturers typically release new models in the late summer or early fall, which makes the end of the year a prime time to buy a vehicle from the previous model year. These cars are often heavily discounted to make room for the newer models, and they still come with the latest technology and safety features, making them an excellent value for buyers.

c. Tax Implications

For businesses and self-employed individuals, buying a car at the end of the year can have tax advantages. In Canada, you may be able to deduct the depreciation of a new vehicle from your taxable income. Purchasing a car before the end of the fiscal year allows you to claim a portion of this deduction sooner, which can result in tax savings.

Pro Tip: These sales can begin as early as the fall and continue throughout the winter. It’s also worth remembering that these early sales will coincide with Black Friday for extra special savings! 

Towards the end of every month

If you want to find a deal, why not wander into a dealership at the end of the month or end of the quarter. Many dealers have monthly sales goals to hit, and some of them will still be trying to hit their quarterly or monthly quota.

In these instances, you might have some wiggle room to negotiate a lower price. And even if sales quotas have been met, dealers still have the potential of earning a special bonus when they exceed their quotas and may be more open to granting a reduction to close one more sale. 

When new models are released

Late August and throughout September is when newer models usually get added to a dealership’s inventory and can be one of the best times of year to save money on your next car. At this time, dealers are likely to begin reducing prices from the previous season’s inventory to make room for their brand new models. This is a great time to find a deal on one of last season’s vehicles. These cars might be missing a few of the newest bells and whistles of the newest models, but you’ll be able to negotiate a great deal on a car that’s still brand new, just not the most recent model year available.

It's not uncommon for a new or used car dealership to host special clearance sales or inventory blowouts during these months. Finance incentives including zero down payment, lower interest rates, or cash back offers may also be available and can help you save money when buying a new car.

Some manufacturers release new models as early as the spring, so if you know what brand you like, find out when the manufacturer releases new models and then see about snagging a discount on one of last season’s inventory.

During slow days at the dealership

Try to only visit dealerships during off-peak times. Go during weekdays (especially Monday, Tuesday, and Wednesday) instead of the weekend. Rainy days are also a good time to brave the elements to look at cars since nobody else is there. Slower days like these may make negotiations a bit easier for you since the dealer will have fewer prospects that day. 

Pro Tip: New Year's Eve is one of the most opportune times to buy a car. Think about it. It’s the end of a quarter, month, and year! You’ll be shopping when nobody else is there because they’re all getting ready to party. Meanwhile, you’ll be driving off the lot in a car you love! 

During the off-season for specific vehicle types

While late fall and December can also be a good timeframe for earning discounts on a variety of new models, it can also be a good time of year to shop for something like a convertible. It makes sense that demand is lower for these types of cars during the winter months. So if you’re determined to cruise in a convertible someday, wait until winter to see what’s on offer! On the other hand, 4-wheel-drive SUV sales tend to be stronger when winter is imminent, so you might consider purchasing your SUV during the warmer months to enjoy summer savings!

Seasonal trends and their impact on car prices

Seasonality plays a crucial role in determining car prices in Canada. The country's diverse climate and driving conditions influence when people are more likely to buy cars, which in turn affects pricing.

a. Winter (December to February)

Winter can be a surprisingly good time to buy a car in Canada, especially in regions with harsh weather conditions. Snow, ice, and freezing temperatures can deter people from shopping for vehicles, leading to a decrease in foot traffic at dealerships. This reduced demand often results in better deals for buyers who are willing to brave the cold.

Additionally, dealerships are keen to clear out last year’s models to make room for new inventory. This combination of low demand and high supply can result in significant discounts on both new and used cars.

b. Spring (March to May)

Spring is typically the busiest season for car sales in Canada. As the weather improves, more people venture out to dealerships, leading to increased demand. With tax refunds coming in, many Canadians have extra money to spend, further boosting sales. However, this heightened demand can make it more challenging to find good deals, as dealerships are less likely to offer significant discounts.

c. Summer (June to August)

Summer is a mixed bag for car buyers in Canada. On one hand, the warm weather and summer vacations can lead to an uptick in demand, particularly for family vehicles, SUVs, and recreational vehicles. On the other hand, the introduction of new models in late summer means dealerships are eager to clear out older inventory. This can create opportunities for buyers to negotiate better deals, especially in July and August.

d. Fall (September to November)

Fall is often considered one of the best times to buy a new or used car in Canada. Dealerships are under pressure to clear out the current year’s models to make way for next year’s inventory, leading to significant discounts and incentives. This is particularly true in late September through October, when dealerships start receiving the next year’s models.

Additionally, manufacturers may offer promotions and rebates to boost sales before the end of the fiscal year, making it an excellent time to score a deal on both new and used cars.

Watch for dealership promotions and sales events

Throughout the year, dealerships in Canada run various promotions and sales events that can offer significant savings on both new and used cars. Being aware of these events and planning your purchase around them can help you get the best deal.

a. Holiday Sales Events

Major holidays like Canada Day, Thanksgiving, Black Friday, and Boxing Day often coincide with dealership sales events. During these times, dealerships offer special promotions, discounts, and financing deals to attract buyers. These sales events can be an excellent opportunity to purchase a car at a lower price, especially if you’re flexible with your timing.

Black Friday and Boxing Day, in particular, are known for their significant discounts on a wide range of products, including cars. Many dealerships offer substantial end-of-year savings on their remaining inventory, making it one of the best times to buy a car in Canada.

b. Manufacturer Rebates and Incentives

Car manufacturers often offer rebates and incentives to boost sales, especially during slower sales periods. These incentives can include cashback offers, low-interest financing, and lease deals. Monitoring manufacturer promotions and combining them with dealership discounts can lead to significant savings.

These incentives are typically more generous towards the end of the fiscal year and during the launch of new models, so timing your purchase to coincide with these promotions can be highly advantageous.

c. Year-End Clearance Sales

Year-end clearance sales are a staple in the automotive industry. As dealerships prepare for the arrival of new models, they are eager to clear out older inventory. These sales often feature some of the best discounts of the year, making it an ideal time to buy a car.

In Canada, these sales typically occur in November and December, but they can extend into January as dealerships continue to clear out remaining stock. For buyers, this is an excellent opportunity to purchase a new or used car at a lower price.

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