| December 11th, 2008 by admin |
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How To Time Your New Car Purchase
How To Time Your New Car Purchase
When is the best time to buy a vehicle? If you’re shopping for a used car from a private party, your timing won’t have much impact on the deal you’re able to make. But, if you’re buying a vehicle from a dealership, it can have a huge effect. The problem is, most people have no idea how to time their purchase because there are so many theories floating around. Some people say it’s best to buy at the beginning of the month. Others say to wait for new models to hit the showroom floor. Still others are willing to stake their lives on the fact that Tuesdays are always best.
Whether those theories are true or crazy is a mystery (to me, at least). But, there is one time that you can count on for extracting a great deal: the end of the month. Below, I’ll explain why car dealerships and salespeople are more willing to make a deal as each month closes.
Making The Quota
It won’t come as a surprise that car salespeople work on monthly quotas. If they make their goal, they’ll get a small bump in pay (and they’ll keep their job). If they fail to hit their quota, they’ll lose the bump. If a salesperson continues to miss their mark month after money, they might even lose their job. Now, imagine someone who’s trying to sell vehicles off the dealership lot, but is still 4 or 5 vehicles below his quota. If it’s the 20th of the month, he still has time. If it’s the 29th of the month, he’d better hustle to make his goal. And that’s why they’re willing to deal.
The Way To A Salesperson’s Heart
Bonuses. That’s the most effective way to inspire any salesperson to sell just about anything. The important thing to realize is that dealerships, just like their salespeople, are working under their own monthly quotas. They’re established by the automakers and more is at stake for the dealership than bonuses. If they meet their goal, the car manufacturer will reward them with a larger inventory. If they don’t hit their mark, the automaker will cut back the supply and the dealership will be left with fewer vehicles to offer.
So, what do they do to inspire sales? They give their salespeople cash bonuses for pushing harder. Eventually, the vehicles get sold (hopefully), the salespeople get paid, and everyone’s happy.
Those 2 reasons – quotas and bonuses – are why there’s always a good chance that you’ll cut a better deal for a new car if you buy it on the last day of the month.
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