If you’ve been considering buying a new car, Memorial Day weekend might be a good time to do it.  Holiday weekends are often one of the best times of year to buy a car.  Salesmen typically offer special car sales over Memorial Day weekend for several reasons:

1. Gas Prices start increasing towards summer and the demand for gas guzzling SUV’s and all-wheel drive vehicles is down.
2. Dealers know that car shoppers that have been hibernating over the winter are heading outside to take advantage of the Spring weather to look for deals.
3. Three day weekends mean people have an extra day to shop.  So dealerships will ramp up their sales efforts with “events” and other promotions
4. Some dealerships will offer a bonus to the salesman who makes the most sales over a long weekend.
5. And most importantly, towards the end of every month car salesmen are trying to hit their monthly bonus targets and are more willing to make a deal on a single car to earn a big bonus check.

If you are looking for Memorial day car incentives, check out Edmund’s Deals of the Month.  And if you go to a car lot to see what’s on sale, don’t buy anything at the dealership.  Head home to find the best car prices online to get the best deals this holiday.

When should you buy a car to get the best price? Look at the infographic below to see how your timing can affect car prices. And if you want to know the best specific date for what you are buying, click the Get Started button above for a free recommendation.

As you’re reading, just remember that regardless of when you buy, you’ll find the best car prices online, not at the dealership.

  Click the infographic below to enlarge.

Embed this image on your site: <a href="http://www.findthebestcarprice.com/best-time-to-buy-a-car/"><img src="http://www.findthebestcarprice.com/images/best-time-to-buy-a-car.jpg" alt="Best time to buy a car" title="Best time to buy a car"/></a><br/>Source: <a href="http://www.findthebestcarprice.com/best-time-to-buy-a-car/">Best Time to Buy a Car</a><br/>

Best Time of Year to Buy a Car

You can find the best prices on seasonal vehicles off-season.  Convertibles and sports cars can be cheaper in the fall and early winter because of less demand. The weather also plays an impact.  SUV’s might be discounted in the summer when gas prices are up and people aren’t as concerned about finding four wheel drive cars to navigate wintery roads.

If you’re looking for a home on the road, the best time to buy an RV in colder climates is when the snowbirds have headed south for the Winter.  Demand drops off and sellers know they are going to have to go through the hassle of winterizing and storing the RV for the off season.   Conversely, in parts of the South, the best time to buy an RV is in late Spring after buyers migrate back north and there is less local demand.

The fall months are also good for sales at the end of a model year.  Different manufacturers end model years at different times, but many change years in September or October.  Dealers want to get rid of old models to make room for new ones. And you can get especially good deals if the body style is changing.  Just be careful to weigh the discount on an end of model-year car.  As soon as you enter a new year, that car’s resale value will take a hit because it’s labeled as a whole year older.

Best Month to Buy a Car

December is a great month to buy a car because dealerships are desperate to lure shoppers on the lot while most people are preparing for the holidays and spending all their extra cash on gifts.  It’s also the best time of year to buy a car because dealerships are trying to hit their annual sales quotas and related bonuses.  Dealerships have both month-end and year-end targets, so December means big discounts.  And if you don’t want to stay home on the holidays, Christmas Eve and New Year’s Eve are typically two of the best days of the year to find deals.

Best Day to Buy a Car

Even if you forget everything else, remember this statement:  The best time to buy a car is the last couple days of the month.  Manufacturers set monthly targets for car dealerships.  If car salesmen and dealerships meet their monthly sales goals they can earn bonuses.  So if you time your car purchase towards the end of the month you could end up buying from a car salesman who is close to hitting his quota and earning a bonus payment.  This bonus may be much bigger than the loss he takes on a single sale and as a result he may be willing to provide a bigger discount to you in order to earn that bonus.

And interestingly enough, the second best time to buy a car is the first couple days of the month.  Because the end of the month trick is widely known, salesmen are usually pretty busy with buyers that have waited.  As a result, the first couple days of the month mean fewer buyers and idle salesmen may be willing to deal.  Salesmen may also want to get a jump on their monthly sales quotas so they’re not under as much pressure at the end of the month.

You can also check Edmunds predicted price trends which forecasts whether prices are headed up or down for most models over the next 30 days.

Best Time to Buy a Car

Don’t go out of your way for this one, but some dealerships offer salesmen a small bonus ($100 or so) for selling the first car of the day on a Saturday or holiday to encourage sales. So if you are one of the first buyers of the day you may notice a small benefit.

What’s the Best Way to Buy a Car?

That’s easy, don’t go to the dealership at all!  Get car prices from multiple local dealers and ask them to compete with each other over email.  I explain how in my free guide, How to Buy a Car at the Best Possible Price.

What if You Need a Car Now?

As much as you might like to time your car purchase to get the best deal, it’s not always possible.  Sometimes an accident or unexpected repair may make waiting difficult.  In these cases, you can still get car prices online and make car dealers compete.  And check out Edmunds car incentives and rebates to see which manufacturers are currently running promotions.

European Delivery Programs

Here’s a final added tidbit.  If you are considering buying a high-end luxury car, why not take a trip to Europe?  While timing a luxury car purchase may not net you savings on the car itself, you can save on your vacation spending.  Manufacturers like Audi, BMW, Mercedes, Porsche, and Volvo all offer vacation packages that allow you to pick up your car in Europe and tour the country side.   As for the best time of year, Spring is a great time to visit Europe while the weather is comfortable but the high-priced summer tourist season as not begun yet.

Today I have the pleasure of interviewing Anne Fleming, president of Women-Drivers.com.  Anne is one of the nation’s leading consumer advocates for women buying cars and also a good friend of mine. I wanted to know how car buying has changed for women in recent years and what women could expect these days when buying a car.

1.       Anne, we all know men and women approach things in different ways.  When choosing a type of car, what factors do you see women focus on that may differ from men?

We hear from women all over the US, and the top factors that are important to women when purchasing a vehicle rank this way:

2.       I’ve heard you mention in the past that women are often uncomfortable dealing with high-pressure car salesmen alone.  As a result, they may opt to bring a male family member or friend with them to the dealership.  Do you think this is changing?  Are women are becoming more comfortable buying cars on their own these days?

Certainly, women have more options today to buy a vehicle and not have to participate in the “full, traditional model” that you are referring to. For example, women can buy a car on-line, they can buy through different internet models; heck, they can hire a broker to buy their vehicle. Still, less than 4% of all vehicles are bought exclusively on-line.

However, the data we get from women shows that when browsing, 57.2% of women go to the dealership by themselves. Of those that go with another person, 73.6% are accompanied by a man.

When actually purchasing a car, 45.2% go by themselves. Of those that go with another person, 80.4% are accompanied by a man. This shows that women want to level the playing field and they believe that they will get receive a better deal and possibly better financing with another person there on her behalf, most notably a man.

To clarify, in many cases women are buying a car with her partner. But, the latest Pew Report says that 51% of American adults are married, so there are a lot of women buying cars without their married partner, also.

 3.       Now that everyone can access the Internet with their smart phones, what behavioral changes do you see occurring at the dealership?  What are people using their smart phones for?

Smart phones afford customers two things: immediate access to researching vehicles and dealer reviews. In January, JD Power reported that one-third of all buyers are researching dealer review sites like Edmunds.com, DealerRater.com and Women-Drivers.com to determine where they should go to buy a car. It is estimated by 2014, half of all buyers will use these sites.

Women – heck, women and men are not interested in the old model of being “held hostage” at the dealership with the back and forth and not having a good experience.

4.       Some men (like myself) determine the type of car they want and then determine where they buy from based solely on price.  Do women approach selecting a dealership the same way?  What are the main factors that determine where women will buy?  And how much does price weigh in on the decision?

As we said in Q1, price is the top reason. With divorce rates so high, women delaying marriage and 40% of children being born today to unwed mothers – being a single mom, or the breadwinner, or being on a budget factors into why price is so imperative.

Once price is determined, women begin looking at 3 or four different models to hone in on.

 5.       I love the idea of “women-friendly” dealerships.  How does that factor in for those ladies that want to negotiate over email or phone before getting to the dealership?

The designation a “Certified Women-Friendly Dealer” is good for the buyer and for the dealership alike. It saves women time by going to dealerships that are certified. Anyone shopping or researching the internet will see the ‘certification’ because these dealers receive great SEO rankings.

That’s what dealers want – they work hard by making great customer-centric service available to women consumers, then receive positive reviews from those consumers, and are rewarded with extraordinary SEO and marketing tools. The net-net for those dealers is more leads, walk-ins and sales.

 6.       You’ve created the WSI score as a rating system for car dealerships.  How has this changed dealership and car salesmen behavior?

On our site dealers are rated by WSI, or Women Satisfaction Index® which is the score of the review, from a 1.0 to a 5.0 (the highest). Dealers that maintain a cumulative WSI of 3.8 – 5.0 are Certified.

When the site launched in 2009, dealerships shyed away from brand reputation sites.

Today, however, most dealers embrace and optimize review sites like ours. They understand that reviews impact the placement of their dealership through search engine optimization.  Additionally, they recognize that reviews are a consumer expression of satisfaction and want the opportunity to market these reviews. In the January JD Power report, they found that women rate their dealers higher than men, interestingly.

We see the same on Women-Drivers.com. Here are the Top 2012 Auto Brands as Rated by Women.

Game Theory, Fax Blast, and other Car Buying Strategies Dissected

The Internet is a game changer for car buyers.  Consumers now have the power to research cars online and getting prices from multiple dealerships.  But there are many dissenting opinions on how to properly use the Internet to get the best deal on a car.  Let’s dissect the most popular car buying techniques and see what works and what doesn’t.

Old School Negotiating (What your father taught you)

You probably heard the following advice when you bought your first new car.  Negotiate UP from Invoice or Negotiate DOWN from MSRP.  The old advice was to throw out a low ball number and hope a dealer takes your offer seriously and wiggles on price.  You could either pick a number based on a % above the dealer’s cost (invoice) or something lower than the sticker price (MSRP).  Unfortunately, both of these strategies will cost you money.  If you mention any price to a dealer, they’ll never go below that number.   If you’re shopping for a TV online, would decide on an amount and not buy a TV that showed up in a price comparison below your target price?  Of course not, that would be crazy.  Setting a price floor for yourself can be a costly negotiating mistake.

Strength: At least you know better than to pay full sticker price.

Flaws:  Very outdated.  You work with only one salesman and don’t see the benefits of price competition.

Fax blast

The fax blast (or fax attack) is a strategy recommended by www.fightingchance.com and the Motley Fool.  Both have a similar approach.  They suggest you flip through the yellow pages and find a large number of local car dealers.  You then send each a fax a request for a car price quote.  When you get responses back, send out another round of faxes and ask the dealers to beat your best price.

The theory behind this is sound, but the implementation is flawed.  First off, no one faxes anymore.  You’re much more likely to get a response to an email.  Secondly, it’s easier to manage a process like this with a temporary email account that you use strictly for contacts with car dealers.  You’ll have an online history of all your contacts and a record of any offers.

Also, Motley Fool suggests you try to find the Fleet Manager before sending a fax.  That may have been important before Internet Salesman came along, but is no longer necessary.

Strength: Competitive bidding is the best way to get the lowest car price.

Flaws:  Who owns a fax anymore? Or more importantly, who wants to use a fax?

Game Theory

Game theory is similar to the fax blast method, but instead of faxing, in the video below Bruce Bueno recommends calling car dealers to get prices.

Great idea, but the implementation is even worse than the fax blast.  Calling car dealers is problematic for several reasons.

It’s much better to get written communications so you have a record of offers.  It’s very difficult to take notes on the phone about specific models and inventory while trying to negotiate.  Also, phone calls leave the door wide open for salesmen to do what they do best, influence you.  The main goal of most salesman is to get you to show up on the lot so they can close a deal.  They’ll say just about anything to get you off the phone and meet in person.

Strength: Again, competitive bidding is the best way to get the lowest car price.

Flaws:  Playing phone tag with dealers is time consuming and it’s difficult to track responses.  Phone negotiations leaves you susceptible to manipulation by salesman.

Email Negotiating

This is a similar strategy as the fax blast and game theory, but instead of using a fax or a phone, all of your negotiations are done over email.  You start out by getting car price quotes on the Internet.  When car salesmen respond, you send out a round or two of emails asking each dealer to beat your best price.

You can use pre-written email templates to say exactly the right things to salesmen to get the best responses.  It’s easier than a fax and you can track all of your responses in a folder or an Excel worksheet.

Strength: Competitive bidding is the best way to get the lowest car price.  It’s much easier to manage than fax or phone.  Also, you can keep a record of your communications and offers.

Flaws: If you’re not an organized person, this might not be for you….but the next option can help with that.

CarWoo Automatic Negotiating

CarWoo is a service where you can get price quotes from several dealers anonymously.  You can view all of the latest car prices in one place, the CarWoo website.  Car dealers are able to see the prices of their competition, so they can make multiple offers and drive the price down.  It’s sort of like a reverse auction, but there’s no set time period and you don’t have to buy if you don’t find a deal you like.

Strength: Competitive bidding is the best way to get the lowest car price AND CarWoo manages much of the process for you.  Also, you can remain anonymous throughout the process until you find a deal you like.

Flaws: CarWoo has a rapidly growing network of dealers, but you may not be able to reach every local dealer in your area. Also, as I mention here, using their “Send Counter Offer” feature is a mistake; instead let dealers lower their own prices and don’t set a price floor for yourself (see my note on “Old School Negotiating” above).

Car Buying Services

You pay a fee to a broker who negotiates a deal on your behalf, usually between $300-600.

Strength: It’s simple and you’ll get a decent deal with minimal hassle.

Flaws: You always have to pay the commission on top of the car price.

Hybrid approach (CarWoo plus email)

My preferred strategy is to take a hybrid approach.  Use an Internet price service to get dealer quotes and negotiate via email, but also use CarWoo.  Sometimes the same dealers respond to both (but they don’t know it because CarWoo keeps you anonymous).   You may find the same dealership offers different prices!  Also, never use the phone to talk to dealers until you have a deal and are ready to setup an appointment to pick-up.

To standout in the family car segment, you’ve got to be better than the competition. But you’ve got to be subtle about it. Jumping up and down, screaming “I’m better than you!” doesn’t work in the PTA League. You’ve got to have command of that little-used trait called subtlety. And that’s something Honda practically wrote the book on.

Even though the last-gen Honda Accord was accused of being big and ‘Buick-y”. It still sold with the veracity of a California wildfire. So for 2013, Honda had to silence the critics by creating yet another mold-smashing family car. And that’s exactly what they did.

Now a marvel of modern engineering, the 2013 Honda Accord features Honda’s take on many of today’s most popular technologies. Like direct injection for example. Honda didn’t just screw a GDI kit to an existing engine, they engineered the new Earth Dreams line of engines to be as smooth and efficient as possible. The new direct injected 2.4L makes 185-hp (189-hp in the 2013 Honda Accord Sport), which is a modest gain over the 177-hp in the 2012 Honda Accord. It’s not very impressive when compared to the 200-hp in the 2013 Kia Optima. But the Honda engine runs like a well-oiled machine, and there’s a precision feel to it. What you lose in horsepower, you gain in refinement. And in a car that’s all about being ‘nice’, that’s a good trade-off.

Another Honda feature-refinement is the optional LaneWatch Blind Spot Display. Instead of just fitting the 2013 Honda Accord with a buzzer-type blind spot warning system, they mounted a camera to the right side mirror. If you’re about to crash into say, an ice cream truck, the system will project a real-time image of said ice cream truck, onto the 8-inch dash screen. Since using those big clear things called ‘windows’ has become passe, this is the next best thing.

Now shorter, and lighter. The 2013 Honda Accord packs a lot of obsessively thought-out features, into an easier to maneuver package. But even with the 3-inch length reduction, there’s actually more passenger room in the well-made interior. And Honda even included their very own smartphone-based infotainment system called HondaLink.

Since everybody in the 2013 Honda Accord’s price bracket carries a smartphone, their new system was designed to be blindingly simple: Just look for the Aha! button (literally). And while you’re at it, the Forward Collision Warning system (standard on the 2013 Honda Accord EX-L) will beep and flash at you, if the grille-mounted radar sensor detects impending doom. There’s also new SmartVent side airbags (designed to better protect smaller occupants), and a new Pedestrian Injury Mitigation design was used for the front of the 2013 Honda Accord (the hood, bumper, hood hinges, and wiper mounts are designed to deform easily, reducing the severity of pedestrian injuries).

In all, the 2013 Honda Accord is an extremely compelling choice in a very crowded field. And while it may not shine particularly bright in a single area, it does everything well…which is what a Honda Accord is supposed to do.

In a twist of irony, Honda has just recalled 347,000 2003-2004 Honda Odyssey minivans, 277,000 2003-2004 Honda Pilot SUVs, and 247,000 2003-2006 Acura MDX SUVs. It seems that the ignition switch lock can break, allowing the key to be removed while the vehicle is still in gear. If you unwittingly put it in reverse, then shut the motor off, your Honda minivan / SUV could roll away from you and crash. The irony here is that Honda’s chief competitor Toyota had to issue that massive recall back in 2009, over ‘runaway’ vehicles. By comparison, Honda’s ‘rollaway’ problem seems less severe.

So far, NHTSA has received 43 complaints, 16 crash reports, and 2 people have sustained minor injuries. Honda will begin replacing the affected ignition switches in February. But until then we encourage owners to double-check that their vehicle is in Park before removing the ignition key. Engaging the parking brake is also a good idea.

Shopping for a car can be a daunting task. There’s the pressure of finding the right car, then you’ve got to negotiate the deal, and figure out how to pay for it all. So let’s eliminate one of the ‘pressure points’ by examining who works at the car dealership, and what their role is in getting you a car.

Receptionist

One of the first points of contact that many people have with a car dealership is the receptionist. It’s her job to route calls to the right department / person, and for smaller dealerships, the receptionist is sometimes the secretary too. If you call ahead, be extra nice to the receptionist. She might direct you to the nicest salesman on the lot.

Salesperson

Obviously, it’s the salesperson’s job to get you into that new car or truck. But it’s also their job to stay educated on the cars that they sell. And many times, they have to move cars around the lot in order to keep the inventory looking fresh. They get paid on commission, so if they don’t sell a car, they don’t get paid. Most car salesmen actually like their job, and they’re going to try to get you into the right car for you, not their commission.

Finance Specialist / Manager

The finance person is responsible for getting you a loan to buy that new ride. The dealership has relationships with numerous banks and finance companies. It’s the finance person’s job to maintain these relationships, so they’ll know which bank is likely to give you a loan. Before you go apply for a car loan, get all of the necessary paperwork in order before you go. Proof of income, ID, etc. If you have everything with you, the process will go a lot quicker.

Sales Manager

The sales manager is responsible for managing the sales staff, approving car deals, and determining the value (to the dealership) of your trade in. They can also (in some cases) be the one to buy and set the prices on the cars. Before you head to the dealership, make sure that your trade in is clean, and take the pink slip/title with you too.

When the Fiat 500 first floated ashore in 2011, most people didn’t even notice. Europe’s favorite compact car just didn’t seem to resonate with American buyers. Then Fiat/Chrysler got their marketing act together, and the little Cinquecento actually started to sell.

Since 2011, Fiat has sold 73,000 of its Mexican-built compacts in the U.S. market. And they’re introducing several new models for 2013, including an all-electric 500e, a 5-door called the 500L, and a 135-hp sport flavor (500 Turbo) which will slot between the 500 Sport and the 160-hp Fiat 500 Abarth. Apparently, a lot of Americans have learned to speak Italian.

Meanwhile, in the rest of the world…The Fiat 500 has been going strong since 2007. As the brand’s most recognizable model (besides the Panda of course), the little Cinquecento is a best-seller from South Africa, to Japan, and everywhere in between. Loved for its size, reliability, and endless options list, the Fiat 500 has become a tiny automotive superstar.

After just 5 years, the Fiat 500 joined the 1-Million Club, as a Bianco Perla (Pearl White) Fiat 500 Lounge rolled off Fiat’s assembly line in Poland. We’re not sure what they plan to do with this historic 500, but it’ll probably be the first of several million-mark cars in the Cinquecento’s history.

Although you’d assume that car dealers make a small fortune every time they sell a new car, that’s not always the case. In fact, there are a lot of costs associated with selling you that car, and that can leave Mr. Dealer with little to no profit at the end of the day.

Typically, car dealers will finance their inventory through something called a Floor Plan. When they order a car from the factory, the finance company covers the invoice price, and the dealer pays a certain amount of interest for every day that the vehicle remains in inventory. Once the car sells, the dealer pays off the loan, and the car gets replaced.

As you would expect, the dealer can make more money by selling the vehicle faster (since he’s not paying as much interest). To do this, many dealers will hold one of those “invoice” sales, where a car will seemingly be sold for the dealer’s cost. But there’s a little more to it than that.

To bolster the dealer’s bottom line, manufacturers instituted something called ‘dealer holdback’. This is a percentage of a vehicle’s price that gets returned to the dealer several times a year (usually quarterly). When determining the invoice price, the dealer holdback is generally included in the price  The purpose of the dealer holdback is to offset the interest paid by the dealer to finance his inventory. This ‘holdback’ is usually capped at 2-3% of the vehicle’s invoice price.

Since Mr. Dealer can keep more of that money if he doesn’t have to pay 2 months-worth of interest, those $1 over/under invoice sales have become quite popular. They not only allow the dealer to move their inventory faster, but their salesperson’s commission is also capped at the invoice price of the car. Leaving more of the holdback to be counted as profit.

When negotiating the price of your new car, the dealer holdback will almost never be up for discussion. This is the dealer’s fall-back profit, and many times, it will just cover the floor plan interest and the salesman’s commission. The holdback amount also varies from car company to car company. And some (particularly European brands) don’t even offer their dealers a holdback.

If there actually is a dealer holdback, the salesman won’t be able to tell you the amount. Their commission is based on the “gross profit”, so the only ones to know the amount of the holdback will be the sales manager and upper management. Since the dealer holdback is paid out by the manufacturer, just let the dealer have this money. Besides, you can still get yourself a pretty good deal by focusing on rebates, and other incentives.

What is VIN etching?

VIN etching is a process that involves an acid etching of your vehicle’s Vehicle Identification Number onto a windshield, or side window. The idea is to deter vehicle theft by limiting the thief’s ability to sell a stolen vehicle, or its parts. A dash-mounted VIN plate, or door tag can easily be removed by a car thief. But an acid-etched VIN number can’t be hidden, requiring the villain to remove the VIN etched part before they can dispose of the vehicle.

Stolen vehicle’s are valuable for three reasons:

1. Valuable Parts: Components like airbags, control modules, and body panels are invaluable on the black market. Body shops / reconditioners can purchase the parts for half the cost, then sell unsuspecting customers the stolen parts for a huge profit.
2. Resale: Car thieves can easily swap VIN plates and titles, allowing them to sell stolen cars on the open market. Or, the stolen cars can be shipped overseas, in which case, a VIN etching won’t do you any good (especially when your stolen E-Class winds up in Albania).
3. Commission of a larger crime: If a bad guy needs your BMW M5 for a getaway car, he’s probably not going to care that your VIN number is etched into the windshield.

As passive as it is, VIN number etching can actually save you money on your insurance. The reason is, cops are able to locate and trace the VIN number more quickly. And this helps them to track down car thieves, and recover more stolen cars for the insurance companies. Thus saving you money on insurance, so ask your insurance company if they have a VIN etching insurance discount.

Ultraviolet VIN number labels can also be placed on various body panels, making it more difficult for thieves to get away with selling stolen parts.  UV VIN labels can only be seen with a black light, and cops are trained to look on certain areas of  a vehicle for these tags. If they’re investigating a suspected ‘chop shop’, they’ll be able to trace any stolen parts back to your vehicle. This in turn, allows the insurance company to recover more of the money they just paid you.

VIN etching scam

Many car dealers have a VIN etching fee as an add-on in the Finance Office. This fee is one of the biggest car dealer scams and usually costs around $100 and is almost pure profit for the car dealership.  They’ll put your vehicle’s VIN on the windshield, back glass, and side windows.  Don’t pay for this, instead…

Do It Yourself - VIN Number etching

If you want to have VIN etching done to your vehicle, you can buy a do-it-yourself VIN etching kit on the internet for about $20-30. These come with a custom stencil of your vehicle’s VIN number and a mild acid solution to etch the number into the glass. If you opt for the UV VIN tags, the kit will also come with ultra violet paint to put the VIN number on the inside of the body panels.

Regardless of how you get it done, VIN number etching is an easy way to deter car thieves, and save some money on your insurance.