Re: Best time to buy new?
Do have a vehicle to trade? I'm sure someone will disagree with what I am
telling you but if you have a trade, its value MUST be considered in the
total cost of acquiring a new vehicle.
As the former Group Sales Manager of one of the largest mega-dealerships
groups on the east coast, in my opinion if one is the average new car buyer
who is trading a three to four year old vehicle, the best time to replace it
with a new car was before the end of the calendar year. Shortly after intro,
say November, any rebates, generally, will be in effect by then and before
the end of the calendar year your trade will have its highest trade value.
For example if you had purchased a 2006 model vehicle in November of 2005
your trade, say a 2003, would still appear in the NADA Used car Guide book
as three year old vehicle, after the turn of the calendar year it will
appear as a four year old vehicle. Although trade values drop a bit more
at into than they do monthly, on average, they drop much more after the turn
of the calendar year.
For example I purchased a 2006 Lincoln Zephyr in November of 2005, the car I
traded was a 2004 Lincoln LS which was considered a one year old car in
November of 2005, even though I purchased it in September of 2003. Had I
waited till now to trade, it would look like a two year old car to a
prospective buyer sitting on the lot. The more you go into the calendar
year the more your trade depreciates. The rate of depreciation is generally
much more than the rate at which rebates will increase.
Another example is my other vehicle. I have been buying Mustang GT
convertibles along with Lincolns since I switched to them from buying Lexus.
I bought the first, a 1999, in September of 1998. A 2001 in 2000, a 2003 in
2002 and a 2005 in March of 2005, because Ford did not build the convertible
until March. The total extra cost of keeping my 2003 GT, between September
of 2004 and March of 2005, was $6,000 more than had I been able to buy the
car in September. Over 50% greater than the total of what I had been paying
to buy the previous three ever two years.
Many buyers believe they save money waiting to buy at the end of the model
year. They can, IF they keep the vehicle five years or more. If on the
other hand they are the average new car buyer in the US, who replaces their
vehicle with another new vehicle in three or four year with 30K to 45K miles
on the clock, it will actually cost more to buy leftover models over the
same time period than if they bough the current model at the beginning the
model year when your trade is worth a lot more.
"Scott" <homealone.com> wrote in message
> "Serial # 19781010" <email@example.com> wrote in message
>> Will be in the market for a new Escape soon.
>> Anyone know when Ford will be having another sale?
>> If memory serves it seems the companies often have sales in February.
>> Anywhere on net where they keep track of such things as car sales?
> Near the end of the month. The dealer will be trying to make
> a goal or such.