Buying a new car is often one of the key goals in many people’s life. A new car is not only required for conveyance, but that can also help you uplift your status in the social groups. Buying a new car is easy nowadays but you can save lots of money if you do it in December. Yes, that’s right! Not only from the price point of view, but there are several other benefits as well that you can get when you buy a car in the month of December.
So, let’s check out the various reasons that make December the best time to buy a new car.
Attractive discounts by car companies and banks during the December month
Car companies usually come up with attractive discounts and offers such as free accessories, extended warranty, etc. during December month as they want to achieve the sales target for the year. Amid lower production output due to chip shortages in 2022, any discount by car companies should be welcomed by the customers. Due to the rise in the input cost and hike in interest rates by banks, the car companies may look for a price hike in the coming months.
Car companies usually want to clear their stock before the start of the new year by offering attractive discounts. Car manufacturers and dealers come up with discounts on the current model and increase the price of the model manufactured in the new year.
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Better chance of getting the preferred colour and model as companies want to clear stock
As mentioned earlier, car companies focus on clearing their existing stock before the year ends. So, you have a better chance of getting a car of your choice colour, model and variant compared to starting or mid of year. If you are not able to get a car of your choice with one dealer, you can check the same at other dealers because stocks are usually limited during the offer period.
You are better aware of the budget as the year comes close to an end
The benefit of buying a car closer to the year end is that you are better aware of your budget. You can take a better decision about how much you can spend on buying a new car. Depending on your budget, you can decide about the appropriate car model and variant. When you know how much money you can spend on buying a new car, it can help you in assessing your loan requirement as well. You can choose the lender that offers you a car loan at the lowest interest, minimum or zero processing charges and margin requirement that fits your financial capacity.
Also Read: Loan Against Car: How can your car help you take a loan?
Things to keep in mind
Apart from several benefits of buying a car in December, you should also consider other factors before making a final decision. Sometimes, car companies give discounts on models which they are about to cease production. In such a case, you may find it difficult to get the parts if required after a few years.
Adhil Shetty, CEO, BankBazaar.com, says, “The first thing you must check is your budget and filter your options based on it. Assess your financial goals to decide how much you want to spend on a car. If you’re considering taking a loan to finance the purchase, compare interest rates and check the terms applicable to different car loans. Also, compare the additional charges, such as processing fees, file and legal charges, penalties, etc., being charged by different lenders. Consider all your options before settling for the one most suited to your needs.”
Buying a car in December means after a few days the car manufacturing year will look a year older. When buying a used car, normally buyers prefer a vehicle with the latest manufacturing year. So, you may get a lower resale value for a car bought with December 2022 manufacturing, compared to a car bought with the January 2023 manufacturing date. Buy a car in December if the price discount is attractive, there are models and variants available as per your choice, and the car company is not expected to launch a new model in the coming months.