Is August the best month to buy a new car?
The economy has been wheeling and dealing so far in 2014, it has been driving the GDP to higher highs, which is strengthening the recovery. While each month shows better numbers in all sectors for consumers, the automotive industry being one of them, August has always historically been the month to visit a new car showroom.
Here’s why – a quick study of car sales for the past 3-5 years shows the average price for buying a vehicle in August is more than $150 lower than any other month. On average, that’s $500 less than the other 11 months.
August is the best month to buy a car or truck because dealers are cleaning out older inventory as the new models roll in,”
VP, Koons Automotive Co.
What may be more surprising is that average prices in August are $1,000 less than December! Even though conventional wisdom suggests December is one of the best months of the year in which to buy a new car, the data suggests it’s actually one of the most expensive.
So Why is it better in the “Dog-days” of summer?
“August is the best month to buy a car or truck because dealers are cleaning out older inventory as the new models roll in,” said Mirza Thomas VP of Koons Automotive Company. “This change-over means late-model vehicles are priced to be quickly sold off the lot. August is definitely the time to buy if you’re looking to save money.”
Let’s just take this concept for a test drive around some of Koons.com web sites; here are a few of the incentives for the month:
- 2014 – Ford Focus – 0% APR for 60 mos. PLUS $2,000 Bonus Cash.
- 2014 – Toyota Prius – 0% for up to 60 months + UO TO $4500 cash back
- 2014 – Chevy Silverado – UP TO $4,000 Cash Back.
- 2014 – Kia Sorento – 0% for 60 PLUS $1,500
I would say that as a representative sample? August has some large savings offered!
How much are you likely to spend for a new car this August? According to data from the last 4 years, the average August transaction price was $28,950. February, with its Presidents Day sales, is second, at $29,109
So you’ll definitely find good deals on new cars in August, that’s a given, but you’ll also be able to find some good buys on used cars, especially three year-old models from turned in leases. The automotive site Edmunds.com reports the average price of a used car at franchise dealerships was down $313 for all of 2013 to $15,791.