Best Time to Buy a Car in 2020 [Exact Day/Month to Save You $$$]

Best Time to Buy a Car in 2020 [Exact Day/Month to Save You $$$]


More than seven million Americans are behind
on their car loans because they overpaid and can’t make their payments. In this video, I’m digging into the data
to show you the exact months and days to buy a car for a discount of almost 20% off the
price. I’ll also reveal three negotiating hacks
that will make any car dealer cringe. We’re talking the best time to buy a car
today on Let’s Talk Money! Beat debt. Make money. Make your money work for you. Creating the financial future you deserve. Let’s Talk Money! Hey Bowtie Nation, Joseph Hogue with the Let’s
Talk Money channel. A special shout-out to all you in the nation,
thank you for spending a part of your day here. If you’re not part of the community yet,
just click that little red subscribe button. It’s free and you’ll never miss an episode. Debt and payments on car loans account for
almost two of every ten dollars made by the American family and it’s only getting worse. A recent report by the Federal Reserve shows
car loans have surged to over $1.27 trillion with more than seven million Americans seriously
behind on their payments. This all makes it critical you get the best
deal when you go buy your next set of wheels. But the good news is that 2020 could be the
best time to buy a car in years. In fact, I’m following a set of data pointing
to a blowout year for buyers. In this video, I’m using data from TrueCar
on car sales and discounts to show you exactly when to buy a car, down to the best months
and day of the week. Then I’ll reveal three negotiating super-hacks
at the dealership that will save you thousands! So understanding why 2020 will be an amazing
year for car buyers comes down to looking at the industry, and this is something I’ve
been following as an investor. Looking at sales of cars and light trucks
in data here from the Fed, you see that sales exploded after the recession, probably faster
than they ever had before on all those government programs like Cash for Clunkers. But sales have gone nowhere since 2015. The problem is that all those new cars bought
between 2009 to 2015 are being dumped on the used car market now, just creating a wave
of cheap cars. That’s holding down prices for new and used
and all the manufacturers are feeling the heat. This is a chart of the First Trust Nasdaq
Auto Index, ticker CARZ, which is a fund of car makers and suppliers. The industry index has plunged 11% over the
last five years against a gain of 48% for the broader market. So the car makers’ pain is really going
to be your gain as they scramble for sales, and now with interest rates heading lower,
2020 could mean you finally trade in that 2005 Camry instead of just taping over the
check engine light.[] Now that you know why 2020 could be a great
year to buy, WHEN is the right time to get the best deal? Let’s look at industry data on price discounts
for three rules of when to buy a car. This graphic shows the average discount on
sticker price by day of the week. Weekdays average a discount just over 8% off
the sticker price while your best bet on weekends is seven and a half percent. Now I know that half a percent extra discount
doesn’t seem like much but it’s going to add up when we look at these other rules. Next we see a graphic on average discount
by month with October through February easily beating the other months for discounts. In fact, the average discount off sticker
price in December is more than double what you’ll get in June. And when we look at these discounts, you really
get a sense for when to go car shopping for the best deal…when nobody else is car shopping! It makes sense, right? If dealers are trying to make their sales
quotas, they’re feeling pretty good during those breezy summer weekends when everyone
is out on the lot. If you won’t sign on the dotted line, there’s
going to be someone right behind you willing to pay up. Now fast forward a few months to those wet,
chilly November afternoons. It’s a weekday, Sam Shyster has been sitting
around all day without a single walk-in and he needs to sell a car! One more rule here for when to buy a car before
I reveal the absolute worst time to buy and those three negotiating hacks. You might also consider the last few days
of the month. Dealerships constantly run incentive contests
for their sales staff and its almost always for month-end or sales over the quarter. That means come those last few days, every
dealer is going to be hungry to close just one more sale to meet their quota. Taking all this together, when is the best
time to buy a car…maybe a cold, wet weekday in late November. What about those great holiday sales though? Those huge, must-sell discounts? First of all, love that last one. Remember and Honor this Memorial Day by buying
a car…God bless it! Anyway…these are the biggest scam in car
dealership. People have been conditioned for these ‘special’
sales and automatically think they’re getting a great deal even without thinking about the
numbers! Just remember the golden rule here that tied
those other three together, if everyone else is out car shopping during that CRAZY President’s
Day sale…you shouldn’t be. Now let’s get to those three negotiating
hacks that are going to get you a better deal on a car no matter when you buy, but first
I want to get your opinion. When you go car shopping, do you buy new or
used and why? Do you buy new for the reliability or comfort
or maybe used for the price? Scroll down and tell us in the comments, do
you buy new or used and what are the factors that affect your decision. So now those three negotiating hacks and I
want you to use these in this order. First is understand that financing is the
single biggest profit for a dealership. These dealers, they’re probably only getting
the cars from the manufacturer for a markup of two to five percent. That’s not much to live on so they make
most of their money by working with finance, lending you the money to buy at ten percent. Here’s where it gets really bad though. To make even more on that loan, the dealer
is going to show you car payments on different terms from 60 months all the way to eight
years. They’re going to push you into getting that
loan for as long as possible so they collect that 10% until their kids are out of college. Avoiding this financing trap means going in
with your own financing, either through a bank loan or another source. Now that doesn’t mean accept any loan with
a higher rate just to avoid the dealer financing. I’ll link to a few loan companies I’ve
used in the video description below but make sure you compare rates and don’t get in
over your head. Next is to negotiate on everything, I mean
everything. Get their lowest offer on the car by looking
around a little and then acting like you’re not that interested. Make sure you keep a mental note of all the
add-ons the dealer wants to offer with that price. Then you’re going to start asking for extras. You can ask for an extra year on the service
agreement. Maybe you want a couple new tires thrown in
the deal. If they can’t meet you on these, then shave
a little off the price they offered. You can also negotiate on the extras the dealer
was going to offer. So if initially they were going to offer a
one-year warranty for a certain price, ask to drop a thousand off the price and lose
the warranty. Next here, and you have to be strategic about
this, is don’t say anything about your trade-in. If they ask about your car, say you’re passing
it down to a son or daughter. You want to get to the absolute lowest price
they’ll offer before you take that extra couple of grand off on your trade-in. So even if you said you didn’t have a trade-in
or weren’t going to use it, bring it up as a ‘What-if’ after you’ve already
negotiated the lowest possible price on a car. I guarantee you, use these three rules for
when to buy a car and the three negotiating hacks, you will save thousands on your next
car. Give yourself a couple of months for car shopping. Go out and see what kind of a deal you can
get, just walk away and keep a list of prices you’re seeing from different dealers. You’re going to get the best deal possible
at the lowest price. Click on the video to the right to see exactly
how much house you can afford including two ways to calculate it and tricks to get a better
price. Don’t forget to join the Let’s Talk Money
community by tapping that subscribe button and clicking the bell notification.

About the Author: Michael Flood

38 Comments

  1. In this department I'm pretty lucky. My last car was completely destroyed by a person who fell asleep at the wheel and crashed into two of my cars in the driveway. My brother-in-law goes on auctions to buy salvage vehicles and he bought me a Honda Odyssey 2017 with 10000 miles on it. I bought it off of him for 9000

  2. Do you have any tips/videos on finding under valued option? Also I have like 9k sitting in a prudential account that has been there for over 10 years. How would you personally invest that money as a starter investor/trader?

  3. I always buy cash and depreciated cars. My 12 year old 3 series has all the features youd have in a modern car and is still solid aswell as only costed me an eigth of my yearly income

  4. I always buy two years used, have my credit union give me the loan (currently 1% for a three year loan I will finish paying this November. Then I will continue to pay my monthly quota of $150 into a special "new car account" until my current car reaches 80,000 miles in about six years. Then, go back to the credit union, have them negotiate the price with the dealer, use the money I have saved on the "new car account" as down payment, get a loan from the credit union for 1% again and go to the dealer to pick up the car that I chose on the Internet — always with the right to refuse if I don't like it in person.

  5. Bought last new auto 1985, been buying used ever since. Driving them till they wear out to get my money's worth. Worst was 2 Cadilac Northstar aluminium blocks that cracked, great cars, poor engines. Guess they overcame that problem.

  6. Knowledge is power. Be a good negotiator and know what your're talking about when it comes to value/price. Then, it won't matter when you buy. You'll always get the best price.

  7. That's why I drive a slightly older car that still works perfectly amd I love my monthly payment so far. (ZERO) Lol it is nice. Another great video woo

  8. Purchased new, got 8 grand below MSRP and got Heated leather seats thrown in plus install which would've been at least 1800 to throw it in. Decided to go new because of safety features. Made two dealerships work against each other to get me the best price.

  9. Thanks for your service to our country. I used 1 of your tricks a couple years ago. I told them take this much off the car and I buy it. They took 6k off but I still think they had a way of getting it out of me. Then at the end I said oh I can't buy it I still owe on this car. So they paid off the remaining balance of my old car. 14k. Which was junk. But they never looked at the car till after he wrote everything down and I said we are in agreement you can run my credit. Then the manager came in and said your bumpers are dented. I said I know. Still paid it off. I do think my interest rate is high. 4%. 5 yrs. But I figured my score at the time of 690 that's the best I could do. Maybe I just got lucky.

  10. Great tips to know. But the best way to shop is online towards end of any month and asking for the out the door price from different dealers and let them compete with each other. You have control this way once you got the lowest price just go and get your car. No hassle with the sales team. Me and friends bought 4 news cars this way and got best deals.

  11. I used to lease every three years and then bought new 12 years ago and got a deal in late November, just like you said! Still have that car and after an engine replacement (covered by insurance), it’s still running but will likely look later in the year and will most likely buy used. Great tips! Thank you!

  12. Buy the last week of the year; go with the manufacturers lender for maximum discount; omit all add-ons; refinance with the credit union asap

  13. I'm from Detroit. My family work for GM and Ford. October through November the dealership have both the new models and the year end models. Wait for the price drops on the year end and clean up. My last car was stickered $27K, I got it $17K out the door.

  14. I did buy a brand new car because my last 2 vehicles I literally kept for 20 years each and got the most value from them. In the end though I payed so much in repairs (and was always concerned they would break down somewhere), that I realized it was better to upgrade… and I wanted new and reliable. Also, the reason I went with new was because I wanted new hybrid technology. I'm getting 50 mpg and saving a ton on gas, and the older vehicles didn't have a subcompact model with this feature. I have loved every second of the new vehicle. I did get a 0.0% financing, so that is a plus, that waynI can invest the money I had saved for the car. No regrets at all though I know buying a car goes against some of the financial advice. Also, buying last year's model new helps as they are trying to clear their lots for the upcoming year's models that are coming in, which is what I did.

  15. I think it's financially better buying used cars that have lost substantial value from the new price since cars lose so much in depreciation

  16. I look for certified preowned that is current year or 1 year old. Car should have warranty that is extended or adds mileage. I also self finance.

  17. My man! Timing for this video couldn't have been better! Thanks for all the insight! At the moment, looking into buying a hybrid van for the growing family!

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