by C Tanner

Created on: October 17, 2009

Waiting to purchase a new car at the end of the year when it appears that the Auto Dealers must liquidate their old stock to make room for the new models isn't as good of a deal as the advertising makes it out to be.

Sure there may be HUGE rebates and low finance rates to the consumer but the profit driven Auto Dealer compensates for these consumer savings so he can still make money, and that profit comes from you. The rebates come directly from the manufacturer to the consumer in the form of instant savings off the sale price. During periods where rebates are offered the Dealer has more consumer traffic and therefore is actually less likely to offer additional discounts on top of the manufacturer rebate. The psychology behind this practice is very simple, supply & demand.

Don't get me wrong, end of season rebates do equate to savings for the consumer but it doesn't mean you're getting the best deal possible. The concept behind the advertising is to make you think you are getting a great deal while making it also appear that the Dealer is willing to lose money to make room for new inventory. First of all, the Dealer is never willing to lose money, especially in today's economical climate. Secondly, there really isn't an incentive to the Dealer to liquidate old inventory any more than any other time of the year.

The Dealer isn't out to take advantage of you when the market is so competitive but he will take this opportunity to make profit. Two of the most common ways for the Dealer to make money during this time is on the Sale Price and the Value of your Trade-in. Even when you do your homework and try to be as pragmatic as possible, buying a car is still an emotional and impulsive purchase. After you've test driven your new car and imagined it already parked in your garage you're actually just as eager to purchase it as the Dealer is to sell it to you. It is also a proven fact that consumers negotiate less when there is a high rebate offered on the vehicle they are buying. In addition, the consumer (having already pictured himself driving his new ride) is more willing to part with his trade-in at a lower price.

So when IS the best time to buy? A great time to buy is actually AFTER the first of the year. During the months of January and February the Dealer is still sitting on last year's models and significant rebates are still being offered by the Manufacturer only not as heavily advertised. These months are also typically slower sales months for the

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