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Auto Buying 101: Best Time to Buy & Rate vs. Rebate

Auto Buying 101: Best Time to Buy & Rate vs. Rebate

According to U.S. News “When you are thinking about a new car, your timing can save you thousands if you pick the right time of year – or cost you thousands if you don’t get the timing right.” * See below for when the prices are right:

Best Time to Buy

  • Before You Need a Vehicle – Buy your next car before your current vehicle leaves you stranded; you will be better prepared to shop and under less stress.
  • Monday’s – Or other weekdays to a lesser extent, gives the salesperson more time to negotiate the best deal. Be sure to finalize your auto loan before you visit the dealership!
  • The Month of May – Memorial Day weekend is the first of a few summer holiday weekends when dealers typically roll out sales and special incentives.
  • The Month of October – Dealers and manufacturers start to aggressively move the last of the previous year’s vehicles off the lots to make room for next year’s models.
  • The Month of November – Deals tend to ramp up even more as the end-of-year draws closer and the holiday season kicks off with Black Friday deals.
  • The Month of December – As the holidays approach, dealers and manufacturers have one thing in mind: their annual sales goals. If your dealer is on the cusp of an annual bonus, they’ll likely make you a deal.
  • New Year’s Eve & Day – New Year’s Eve and New Year’s Day offer some of the best deals of the year. Buyers in 2015 saved 8.5 percent on New Year’s Day and 8.3 percent on New Year’s Eve, according to TrueCar.

Rate vs. Rebate

Some think that they’re better off with the manufacturer’s 0% financing instead of taking the cash rebate and financing with their lender. That may not be the case. Here are a few things you may not know about 0% financing offers:

  • You may only be able to finance for a short term (2 or 3 years).
  • Using the 0% financing may require a larger down payment and pre-payment penalties may exist.
  • You may be limited to “on-site stock” which minimizes your choice of models, colors, styles and so on.
  • To qualify; your credit history, employment history, and length of residence needs to be practically perfect.
Financing Through Dealership Best Reward
Purchase Price $24,000 $24,000
Cash Rebate $0.00 $4,000
Loan Amount $24,000 $20,000
Interest Rate 0% 4.50%
Loan Term 60 Months 60 Months
Monthly Payment $400.00 $372.92
Total Loan Repayment $24,000 $22, 375.20

In this example above, taking the rebate and financing with Best Reward would result in a monthly payment that is about $30 lower and a savings of around $1,625 over the term of the loan; see your TRUSTED lender first.

Click HERE to start shopping; click HERE to apply online!

*Source: Vincent, John. (2017, December 29). 8 Best Times to Buy a Car [ U.S. News]