How New Car Year-End Closeouts Work
New Car Pricing
Prices of new vehicles may vary but on average you have to spend around $28,400 for purchasing a new vehicle. Because of these extremely high prices, consumers are looking for opportunities to score the best car deals possible. Since dealerships have to clear out old inventory and make room for upcoming models at the year-end, the prices of many new cars are reduced significantly. Dealerships offer various special financing deals which allow consumers to save a lot of money on their purchase, in turn helping them to clear out old inventory. To understand more about how year-end closeouts work and what incentives and deals are offered to get rid of old inventory, continue reading.
Deals and Incentives Offered by Car Dealerships
As the summer winds down, the car shopping season begins. Many automobile dealerships allow consumers to avail numerous deals and incentives. Some of the most common deals and incentives include low hire purchase, special leasing options, zero percent financing, cash-back offers, and dealer discounts. Most of these deals and incentives allow consumers to save a significant amount of money on their purchase as compared to the sticker price.
However, while these offers may sound compelling and interesting, it is important that you be careful at all times, as many dealerships distract customers from the long-term ownership costs and actual savings. Therefore, the best option is to negotiate further until you get the best price. Since many dealerships are offered bonuses from the automobile manufacturer’s to clear out old inventory, they may actually agree on letting you buy a new car on your terms and conditions.
How to Take Advantage of These New Car Deals?
Some of the best deals and incentives to take advantage of during year-end close outs are dealer discounts, financing deals and cash back offers. Consumers can use these deals and gain numerous advantages by saving lots of money. Since cash incentives are usually offered to dealerships by automobile manufacturers, dealers are allowed to make higher great profits. Therefore, there is always room for negotiation. To understand more about how to take advantage of these deals, continue reading.
Dealer discounts are usually offered on cars that sit on the lot for a long time. For example, if you are interested in buying a car but are unable to because of its high price, it is possible it has not sold as well as expected. Therefore, the dealer will offer a discount off the sticker price, and this will allow you to save at least 10% on the actual price of the new vehicle.
Car Financing Deals
In another attempt to sell used car inventory, many dealerships may offer some interesting financing deals. These deals include 0% financing to attract more buyers and are perhaps one of the most common options all consumers avail during year-end closeouts. Zero percent financing allows buyers to purchase vehicles through monthly payments without having to pay any interest. Therefore, this can add up to considerable savings. In addition, if you can increase the amount on monthly payments without paying interest, you can own a car within a period of 2 years. In certain circumstances, the dealership may even offer cash-back and low financing offers to consumers.
After low financing deals, the second most availed option by most consumers are cash-back offers. These offers allow consumers to save a lot of money. For instance, if they do not like the car, they can claim cash-back. Many people wonder how dealerships offer such deals and incentives. Well, the answer is simple: since holding on to older inventory is considered to be bad business, manufacturers offer numerous incentives to the dealers which are further passed on to the buyers.
So, if you are looking to buy a new car at the most reasonable price, perhaps the best option is to wait for year-end closeouts to begin. This way, you will be able to take advantage of numerous deals and incentives which could save you thousands of dollars on your car purchase.
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