The best time for you to buy? It's when you feel ready
When is the best time to buy a car?
Some people believe that it's at the end of the month, when salespeople and sales managers are eager to hit their sales targets. The reasoning here is that dealerships are inclined to make a better deal at this time.
There is a belief that excessive inventory of a specific model plays in the customer's favour. Dealers are obviously more willing to accept "lowball" offers on unpopular vehicles that aren't selling, right?
I've also heard it said that car buyers should visit a dealership just before closing or during bad weather when the showroom is empty. The belief is that a salesperson is more apt to make a better deal with a single customer, as opposed to no customer.
Admittedly, there are elements of truth in some of these "best time to buy" myths.
It's true salespeople and managers have monthly and yearly sales quotas to reach and they are often more eager to make a better deal at the end of a sales cycle than at the beginning.
But my typical response to the question is this: The best time to buy a car is when you are ready to buy it, and not a moment sooner.
This advice may sound trite, but it's true.
Car buyers need to understand that if they conduct due diligence on the vehicle they want to buy, they will avoid paying more than they should. Plus, they'll stand a better chance of finding a vehicle that's right for them.
If a consumer allows a salesperson to set the agenda, he runs the risk of buying the wrong vehicle and paying a premium for it. When consumers are unprepared, they put themselves at a big disadvantage.
That's not to suggest that salespeople don't look out for their customers' best interests. But salespeople (and sales managers) are in the business of selling vehicles and making a profit.
It's a salesperson's job to present many options and packages in the hope of turning prospects into customers. It's the customer's responsibility to know what options and packages are in his/her best interest.
Car buyers who do their homework before visiting a dealership are less likely to buy a vehicle that doesn't fit their driving habits, lifestyles and budgets. That's just common sense.
The public may think that dealerships prefer to deal with customers who are misinformed and unprepared. Doesn't a dealership stand to make more profit from such a customer?
The answer is no. First, when customers come prepared, they are more qualified and, consequently, more serious about buying a car. The sales process is thereby shortened and the salesperson is more productive.
Salespeople spend more time with customers who are uninformed and don't know what they want.
Secondly, dealerships want customers to be thrilled with their new car; they don't want customers to have buyer's remorse.
If a customer buys a car that is wrong for her, and for which she paid too much, it reflects badly on the dealership.
Such a customer will harbour bad feelings toward the dealership and the brand, and will probably spread negative messages. That's bad for business.
So, the best time to buy a vehicle from a dealership is when it makes practical and financial sense for you, the customer.
It's worth noting, too, that if you are in the market for a new vehicle, this is definitely a buyer's market.
Many dealers and manufacturers are offering unprecedented discounts, rebates and incentives on new vehicles.
And increased demand for quality used vehicles means that trade-in values have climbed higher in recent months.
This column represents the views of TADA. Email president@tada.ca or visit www.tada.ca.
Ron Loveys, president of the Toronto Automobile Dealers Association, is a new-car dealer in the GTA.
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