Why December May Be the Best Time to Buy a New Car

You know that loved one who wants a new car this holiday season? According to Kelley Blue Book's kbb.com, the most visited vehicle pricing Web site, December may very well be the best month for getting a great deal on that four-wheeled gift.

According to Kelley Blue Book's executive editor and 20-year veteran of the company, Charlie Vogelheim, "There are several factors that make December one of the best months to haggle the lowest price out of your local dealer."

  1.  Most dealerships and their salespeople have end of the month quotas
      to meet.

  2.  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.

  3.  Dealers and manufacturers are also looking for bragging rights of
      having the best selling car, truck or SUV in America.  You need to
      offer deals at the end of the year to reach that magic number.

  4.  There is something called 'inventory tax' that dealers in most states
      have to pay on all unsold inventory on January 1.  The best way to get
      around this is to sell as many cars as possible before December 31.

  5.  With new model year vehicles arriving, many dealers may be offering
      great deals on last year's models to make room for the new models.  If
      the car has been redesigned (i.e. Ford Mustang) you may want to stick
      to the new styling.

  6.  Well, there aren't that many people wandering snow-covered lots in
      19 degree weather.  In colder areas, buyers are few and far between.
      Any buyer is a good buyer.

These factors together make December one of the best months for negotiating the lowest possible price on a new car.

Vogelheim recommends that you always do your homework before heading to the dealership as this is one of the largest purchases you can make other than buying a house. "Many manufacturers are offering cut-rate financing or rebates on most 2004 vehicles and even some 2005 models. Determine what incentives are available on the cars you are looking at. And also check the car's MSRP, dealer invoice price and the transaction value or what other people are paying for a new car this week. You can find all of these things on the Internet today at sites like kbb.com. Print them and bring them with you to the dealership."

If you are not the haggling kind, you can always request a couple of price quotes online from your local dealer. Sites like Kelley Blue Book's allow car buyers to submit price quotes to several dealers in three quick steps. Going this route, you can get dealers to compete for your business without ever leaving your house.

Armed with this information, wrapping up a new car in one of those giant red bows can be a reality this year. And if you really do want that giant red bow, check out www.kingsizebows.com, where they actually will sell you an individual bow for that one of a kind holiday gift.

About Kelley Blue Book (www.kbb.com)

Kelley Blue Book is the only vehicle information resource trusted by both consumers and the auto industry, providing research tools and up-to-date pricing on thousands of new and used vehicles, including the company's New Car Blue Book Value, which reveals what a new car is actually selling for. Since 1926, car buyers and sellers have relied upon Kelley Blue Book for authoritative and unbiased information to make well-informed automotive decisions. The company reports vehicle prices and values via products and services including the famous Blue Book Official Guide™, software and Internet site, kbb.com. Kbb.com has been rated the No. 1 automotive information site by Nielsen//NetRatings as well as No. 1 and first visited automotive site by J.D. Power and Associates seven years running. No other medium reaches more in-market car buyers than kbb.com; one in every four American car buyers complete their research on kbb.com.

SOURCE: Kelley Blue Book

CONTACT: Robyn Eckard of Kelley Blue Book, +1-949-268-3049,
reckard@kbb.com

Web site: http://www.kbb.com/

Web site: http://www.kbb.com/media