Are December new car deals worth buying?

By Aaron Crowe

The conventional wisdom is that the end of the year is a smart time to buy a new car because car dealers are looking to move inventory before new models arrive.

But is that always the case? Is December the best month to shop for a new car?

Some deals can be found throughout the year, especially at the end of the month when a dealer is looking to meet monthly quotas.

If you’re looking for cars for the upcoming model year, December sales may not be the best time to buy if you’re picky about colors or features. Cars from the current year, however, can be discounted, though it may require shopping a few months earlier to get the best deal.

Jason Weberman, a relationship coach, says that in October 2012 he bought a 2012 Rav4 for exactly what the dealership paid. There were plenty of choices of colors and models, Weberman says.

September to late October is particularly best because it’s when “dealerships need to clear space on their lots for the upcoming new models,” he says. “They are anxious to get rid of the previous year’s models.”

Finding deals on current year models doesn’t just happen in the fall, says LeeAnn Shattuck, who calls herself The Car Chick and helps women buy cars. Holiday shoppers are enticed with “holiday” incentives on the previous model year vehicles, though sometimes current or “new” model year cars have smaller incentives as well such as lease deals or low APRs for car loans, Shattuck says.

Such incentives can help dealers clear out inventory and “make numbers” by the end of their next fiscal year, she says, allowing them to gain marketing dollars and allocations in the next year from the manufacturer.

“But, holiday car shoppers should be careful to not get caught up in the holiday shopping frenzy and be content to pay the ‘sale price,’” she says.

To read the rest of the story, go to CheapCarInsurance.net, a client of Aaron Crowe, personal finance freelance writer.