5 Reasons Christmas Is Great For Car Buyers

By Jane Lasky

Just as the iconic old man with the long white beard gets ready to fly in a sleigh pulled by eight tiny reindeer, mere mortals may be wise to consider fresh ideas for dealing with their chosen mode of transportation during the holiday season. With that in mind, know that buying a new car at Christmas time brings many incentives. Let's look at a handful. 

Repeating History

Sales reports from past years during this millennium suggest that December is the most cost effective time to buy a new car. The deals are typically the best to be found during a time when purchasing gifts seems to be on everyone's list whereas shiny new vehicles are not. So if you're in the market for a new car, it might be time to treat yourself to a holiday gift, especially if you possess a healthy down payment to start the often tricky process off right. 

Power Bargaining

According to Charlie Vogelheim, executive editor of Kelly Blue Book, the pricing bible for vehicles of all types,  "...several factors... make December one of the best months to haggle the lowest price out of your local dealer." Vogelheim backs up his statement in a recent press release by pointing out that "most dealerships and their salespeople have end of the month quotas to meet."

He also points to the fact that "there are also annual quotas dealers like to meet because the number of cars a dealer sells over a year's time determines what and how much inventory they'll receive in the coming year from their franchise manufacturer."

The Right Date

Indicators passed on by expert TrueCar also emphasizes that December is the month for great deals on new cars. But the source goes even further to suggest that certain days are better times than others to invest in this exciting purchase. In fact, seven of the 10 best days to purchase a new ride fall in December: December 10, 24, 27, 28, 29, 30 and 31 are best for buying your newest vehicle based on past experiences in the car industry.

Tax Incentive

Vogelheim also talks tax incentives with regard to why Christmas car buying is a good choice. He points out, "There is something called 'inventory tax' that dealers in most states have to pay on all unsold inventory on January 1." This expert adds, "The best way to get around this is to sell as many cars as possible before December 31."

The Right Car

While December has proven to be the right time to buy a car at the best possible price, TrueCar says that the last month of the year is also the best time to buy a specific car with the most alluring price tag: the subcompact. For those who are looking to invest in a midsize car, it may be better off waiting until June, states TrueCar.

All of that said, realize that end-of-the-year deals on just about anything on four-wheels are deal-worthy. So, take a cue from those in the know and start shopping to get in on a great buy at a time when it's OK to get a little something for yourself. After all, gift-giving is rampant in December!