What month or day is best to buy a car?

The best times to buy a car are the end of the month/quarter/year (especially December) for hitting sales goals, October/November to clear older models for new ones, and midweek (Tuesday/Wednesday) when dealerships are slower, but always consider holidays like Memorial Day for extra deals, with January and February often being slower months for incentives.

What month is the cheapest to buy a car?

The cheapest months to buy a car are typically December, due to year-end sales goals, and January/February, when dealers clear out old models and face less foot traffic, with late summer (August/September) also being good for trade-ins and new inventory. Shopping at the end of the month or quarter (March, June, September, December) offers great deals as staff try to meet quotas, with December often providing peak holiday incentives and discounts. 

What is the 8% rule when buying a car?

The 20/3/8 rule is a guideline that suggests you put 20% down on a car and repay the loan over three years. Applying the rule correctly will also require your monthly payment and car expenses be 8% or less of your income.

What is the red flag rule for car dealers?

The Red Flags Rule (the Rule), enforced by the Federal Trade Commission (FTC), requires automobile dealers to develop and implement a written identity theft prevention program designed to identify, detect, and respond to warning signs—known as “red flags”—that indicate that a customer or potential customer could be ...

What is the best day of the week to buy a car?

The best days to buy a car are Mondays, Tuesdays, or Wednesdays, especially early in the day, because showrooms are less crowded, giving you more attention and negotiation power, with the added bonus of being right after the busy weekend. For even better deals, aim for the end of the month (29th-31st) or specific holiday weekends like Memorial Day when dealers push to meet quotas, and don't forget late afternoons for eager salespeople. 

BEST TIME TO BUY A CAR: 2024 Discounts, Incentives, MSRP Deals: The Homework Guy, Kevin Hunter

What is a red flag in a dealership?

The “Red Flags Rule” requires your dealership to develop and implement a written Identity Theft Prevention Program (ITPP) to detect, prevent, and mitigate identity theft. Your dealership's highest governing authority must approve the initial ITPP, and take responsibility for it.

What day of the week do car dealerships lower prices?

To get the best deal and personalized service, consider visiting the dealership on a weekday, preferably midweek. Tuesdays and Wednesdays are particularly good days to shop because the dealership is typically quieter, and salespeople may be more willing to negotiate to make a sale.

What not to tell a car dealership?

At a car dealership, avoid saying things that reveal desperation or lack of knowledge, such as "I have to have this car today," "This is my dream car," or "I don't know much about cars"; focus negotiations on the total "out-the-door" price, not monthly payments; and don't reveal you have a trade-in or a pre-approved loan too early, as these details can be used against you, while telling them you're paying cash can hurt your leverage, say experts. 

What is Dave Ramsey's rule on cars?

Dave Ramsey's core car rules emphasize paying cash, buying reliable used cars, avoiding new cars unless wealthy, and keeping total vehicle value under half your annual income to stay out of debt and build wealth. His philosophy centers on avoiding car payments, which he sees as money lost on depreciating assets, encouraging saving for a solid, affordable used vehicle instead. 

How to win against a car salesman?

Car salespeople use various tactics to pressure buyers into purchasing vehicles they may not afford. Staying focused on the total cost of the car, interest rate and fees can help you avoid making a purchase you'll regret. Don't be afraid to walk away if the purchase doesn't feel right.

What should a $30,000 car payment be?

For a $30,000 car, your monthly payment could range from around $500 to over $700, depending heavily on your down payment, loan term (e.g., 60 vs. 48 months), and interest rate (APR), with longer terms and higher rates increasing payments, while a larger down payment (like 20%) lowers them significantly. For example, with a $3k down payment, 5.8% rate, and 60 months, it's about $520; with a good rate on a 4-year loan, it could be $733. 

What is the golden rule of car buying?

The main goal is to determine the down payment, monthly car payments time frames, and transportation costs to optimize them. The rule recommends making a 20% down payment on the car, taking four years to return the money to the lender, and keeping transportation costs at no more than 10% of your monthly income.

What credit score is needed for a $40,000 auto loan?

Anything above a 660 (prime) is usually good enough for reasonable interest rates. According to an Experian report, 70% of borrowers fell into this range. The report also found that the average score for financing a new car was 754, and for a used car, 691.

How do I negotiate a car price?

To negotiate a car price, first research the fair market value (using sites like Edmunds/KBB) and get pre-approved financing, then focus only on the total "out-the-door" price, not monthly payments, by getting multiple dealer quotes and using them as leverage, keeping the process detached and professional, and being prepared to walk away if the deal isn't right. 

What credit score is needed for a $30,000 car?

To qualify for a $30,000 car loan, most lenders prefer to see a credit score of at least 660 to 700. That being said, your credit score is only one part of the equation. Lenders will also consider: Your debt-to-income ratio (how much you owe compared to how much you earn)

What's the slowest month for car dealerships?

Since January is the slowest month for sales, it is much slower for luxury cars to sell. Because of this, it may be more challenging for the most expensive ones to be taken out of your parking lot. To sell out the most expensive ones in your inventory, January is the best time to offer promotional deals to the buyers.

What is the most financially smart way to buy a car?

How to make a financially savvy car purchase

• Choose wisely. Choose the make and model based on what you need. ...
• Set a budget. ...
• Make a big down payment. ...
• Look for sales. ...
• Shop around for the best loan. ...
• Cut down on interest. ...
• Make a deal. ...
• Keep saving.

Why Dave Ramsey says not to finance a car?

“Cars, trucks, RVs, boats, and everything that has motors and wheels go down in value,” Ramsey wrote recently. “NEVER finance them, because they go down in value and you get stuck in them. Don't let debt trap you in something that's losing value every day. Save up, pay cash, and own it outright.”

What is the 50 30 20 rule for cars?

And before you spend a large chunk of money on a car, make sure the rest of your finances are in order. You can follow the 50-30-20 budgeting rule, which suggests using 50% of your money for needs, 30% for wants and 20% for savings.

How to not get screwed by a car dealership?

Make sure that the Total Cash Price on the written contract matches the price that you were told. If the prices are different, you may be the victim of fraud. If the dealership refuses to honor the representations made to you by the salesperson, refuse to sign the contract and walk away from the dealership.

What is a red flag in a car dealership used for?

Used car red flag #1: A complicated history

Because a car's title can be forged, verify it with the appropriate state DMV before you finalize a purchase, especially if the vehicle was recently brought to your state and titled, or if the car's vehicle identification number (VIN) appears to have been tampered with.

Do dealerships like when you pay in full?

Paying with cash won't get you a better deal at the dealership. Dealers make much of their profit from financing, but there's a clever way to work around this. Use dealer financing strategically, then pay off the loan quickly. To get the lowest price, finance through the dealership (even if you have the cash).

What is a red flag when buying a car?

Use your best judgment; if a car looks or feels wrong, don't buy it. Look out for excessive rust, a worn tailpipe, or illuminated dash lights. During your test drive, pay special attention to how the car handles and sounds. If something's off, ask the seller and double-check the title and history report.

What percentage will car dealers come down on price?

Unfortunately, it isn't an exact science because it changes from car to car and dealer to dealer. However, you can use the guideline of 2 or 3% on less expensive brands, and 5 to 10% on luxury brands as a rule of thumb.

What are the most reliable car brands?

The most reliable car brands consistently include Lexus, Toyota, Honda, Mazda, and Subaru, with Lexus and Toyota often leading due to their luxury and mainstream models, respectively, while brands like Acura, Kia, Hyundai, and BMW also rank highly for dependability, especially with hybrids. These brands excel through proven engineering, fewer drastic redesigns, and refined hybrid systems, making them top choices for long-term value, according to sources like Consumer Reports and Kelley Blue Book.