Is it time to buy a used car to replace the one you’re driving? Maybe you are holding onto your old car because it's paid off, and, hey, what's not to like about no monthly car payment? Perhaps you hope you can squeeze out a few more months or miles before you drag yourself kicking and screaming to the car lot.
Or maybe you are just really attached to old Freddie and can’t conceive of ever letting him go, even though he burns oil and won’t start on cold mornings. Let’s face it. It may be time to put Freddie out to pasture.
Knowing when you need to replace your car and the best time to do it can give you the opportunity for a really great deal. The earlier you start to think about it, the more prepared you will be when your chance arrives.
When to Buy
There are three main reasons for replacing your car - safety, reliability, and lifestyle changes.
If a car is no longer safe to drive, then that is the only justification you need for replacing it.
- Your car develops a habit of dying suddenly with absolutely no warning. On the interstate. During rush hour. In a center lane. When everyone around you is going 80 mph.
- You (or other drivers) see flames - not only is it time to replace your car, it is time to get off the road and out of the vehicle immediately.
- If you ever think your car will leave you stranded by the side of the road.
Never put the safety of yourself or your family at risk just to eke out a few more miles or days before you are forced to go to the car lot.
Maybe your car is safe enough, but the name Old Reliable doesn’t really fit anymore.
- It won't start in the mornings, and you are late to work.
- Every time you turn around, it needs not just repairs, but expensive repairs.
- You’re afraid to let your friends ride with you.
- You’re so familiar with the local tow truck driver you know his kids’ birthdays.
Reliability is a must, especially if you live in a car-centric community with little to no public transportation. Your car needs to be ready to go when you are. You need to be able to count on it to get you there and back again without loud engine noises, check engine lights or hesitation at that tricky intersection.
Lifestyle changes prompt many new car sales.
- You decided to start a family and came home with twins. Now you need an SUV or minivan.
- You have no trunk space to carry the groceries needed to get you, your spouse, and your twins through the week.
- You have a new job with a long commute, and you need something that sips fuel instead of guzzling it.
- You moved from the deep snow and steep roads up north to the flat, balmy areas around the Gulf of Mexico.
- Your twins have grown up and moved out. Now you need a smaller car.
Consider how often your car was unable to fulfill a vital function and keep track of how much it costs to run it for a year. You can compare the costs of renting a larger vehicle or paying for repeated repairs against the annual cost of a newer car that is more reliable and fits your current needs better than the one you have.
Timing Is Everything
While the most significant impact on the price of a used car is the type of vehicle you buy, you can wrangle yourself an excellent deal by choosing the best time to buy.
Buy before you are forced into it. Don’t wait until you have driven your current ride into the ground. Give yourself some time to research what you really need, get financing in place, and can wait until the best time of year to buy rolls around.
You may have heard the saying, “Buy in haste, repent at leisure.” Don’t wait until you can’t wait. When you feel you have no choice and have to move fast, your reasoning faculties sometimes shut down.
Wait until the end of the month, the quarter, or the year. Auto salespeople typically have quotas to reach at various times throughout the year, usually at the end of the month or the quarter. They will be anxious to do a deal if they are about to miss their quota.
Also, dealerships like to get as many cars off the lot as possible before the end of the year to make the annual financials look good.
The end of the month often brings in cars moving off lease, and you have a chance at a well-maintained, low mileage car that is only three years old. Dealers would rather sell one to you than to at auction where they will get a fraction of the price.
Shop around certain holidays. You can get good deals on Veteran’s Day, Black Friday (the Friday after Thanksgiving), and Christmas Eve. You won’t get such good deals, however, on Mother’s Day, Father’s Day, or Easter, when people are more likely to be having a family gathering. Also, there will be less sales help at the car lot, and private sellers will be busy.
Earlier in a holiday, private sellers may be anxious to get rid of a car, so they can buy another at a reasonable price. Later in the holiday, dealers are getting eager to get rid of all the trade-ins they just got.
Shop in the winter. Nobody wants to get out and shop for a car when it's cold. Sales will be slow, and you can get a deal, especially on a car better suited to nice weather, like that convertible you’ve had your eye on. Buying an all-wheel drive or SUV in the winter or before school starts will probably cost you because of seasonal demand.
New Year’s Day has a hat-trick of timing for great deals. It's winter, it's a holiday, and it's the end of the year. Woohoo!
Pickups are a special case. Whether you can get a good price on a nice pickup seems to depend on whether the previous driver owned it or leased it.
- People who buy trucks for work use them hard and keep them forever.
- People who lease trucks take care of them so they can return it without added fees.
A bonus - pickups coming off lease will have more advanced technology and less wear for a much better price than new. Truck leasers also tend to go for higher trim levels. Technology tends to lose value quickly, especially since used car buyers aren’t shopping for the latest gadgets.
When should you buy a used car? When it’s the right time for you to buy a used car. Keep yourself well-prepared and start looking long before you need to. When the time it right, you will be ready to take advantage of the best deals.
