Will Car Market Prices Be Lower During Christmas?

Will Car Market Prices Be Lower During Christmas?

December is a period where there are a lot of products on sale and at discounted prices. Many stores and businesses try to offset the outgoing year’s products in preparation for the new trends of products in the coming year. A look at online stores reviews shows this to be true for clothing, gadgets, home products, and even beauty products. But what about autos? You might want to know.

As it is with other industries and sections of economic activities, so it is with car dealerships who also try to reduce the inventory in their lots ahead of the new year. Whether you are looking at new or used cars, there are indications that December, particularly Christmas and the days leading into the new year, might hedge up your bets for better prices. According to some independent research sites, December offers the highest discounts off suggested retail prices by the manufacturers, sometimes to the tune of 6.1%. As you can see, December is not only a season to worry about how to organize Christmas gifts and such, but you could also plan towards changing or buying a car during that season. Here are some reasons Christmas might be the best time to get affordable cars:

Mostly, the new model of cars by different manufacturers usually arrives around October and has to sit in the lot alongside the models from previous years. As the year runs to an end, the dealerships and salesmen get pressured to sell off the models from previous years to make room for the newer models of cars, and this causes the prices of the previous models to drop perceptibly. The point to note then is that you stand a better chance of buying a previous model at a cheaper price during the Christmas period.

Another reason you might want to consider car-shopping in December is that the month serves as the time when most dealerships try to unload the discontinued models by manufacturers. These types of cars are often offered at significantly lower prices to attract fast sales and get them off the lot.

December is a season when most industries and sectors offer incentives and bonuses to boost sales. It is arguably the most consumption-focused season of the year, and the auto industry also recognizes this and offers special incentives to bring in more prospective customers through their doors. Also, most dealerships and salesmen earn commissions on sales; therefore, they try as much as they can to get as many sales under their belts to earn the maximum number of bonuses possible. Add that to the above-mentioned discounts on the retail price by manufacturers offered in December, and you can picture how the car market can become very dynamic during the Christmas season as salesmen have more control over the retail prices they offer.

All of the above-mentioned points happen across dealerships and manufacturers, which means that the competition for the customers’ money, and we all know that competition forces the prices of products down as businesses try to offer the best bargains to beat other businesses. 

After all the consumerism of December, January and February are months when people slow down and try to recover. This means that for car sales, early in the year is not considered favorable. This also implies that getting affordable cars during that period is…unlikely. 

If you still need a reason to buy that new car before the New Year, then think of it as getting a fresh start. You want to enter into the new year with a settled line of action financially, and buying a car can upset whatever delicate balance that you have ongoing. So, buying that car in December can help you shuffle your finances and determine what your New Year will look like, financially. What’s more? Everybody loves a discount, so why not seek to maximize the Christmas season to make the auto purchases of your dreams?