Best Time to Buy a Car in 2021 [Exact Day/Month to Save You $$$]

More than seven million Americans are behind on their car loans because they overpaid and

can’t make their payments.

In this video, I’m digging into the data to show you the exact months and days to buy

a car for a discount of almost 20% off the price.

I’ll also reveal three negotiating hacks that will make any car dealer cringe.

We’re talking the best time to buy a car today on Let’s Talk Money!

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Debt and payments on car loans account for almost two of every ten dollars made by the

American family and it’s only getting worse.

A recent report by the Federal Reserve shows car loans have surged to over $1.27 trillion

with more than seven million Americans seriously behind on their payments.

This all makes it critical you get the best deal when you go buy your next set of wheels.

But the good news is that 2020 could be the best time to buy a car in years.

In fact, I’m following a set of data pointing to a blowout year for buyers.

In this video, I’m using data from TrueCar on car sales and discounts to show you exactly

when to buy a car, down to the best months and day of the week.

Then I’ll reveal three negotiating super-hacks at the dealership that will save you thousands!

So understanding why 2020 will be an amazing year for car buyers comes down to looking

at the industry, and this is something I’ve been following as an investor.

Looking at sales of cars and light trucks in data here from the Fed, you see that sales

exploded after the recession, probably faster than they ever had before on all those government

programs like Cash for Clunkers.

But sales have gone nowhere since 2015.

The problem is that all those new cars bought between 2009 to 2015 are being dumped on the

used car market now, just creating a wave of cheap cars.

That’s holding down prices for new and used and all the manufacturers are feeling the


This is a chart of the First Trust Nasdaq Auto Index, ticker CARZ, which is a fund of

car makers and suppliers.

The industry index has plunged 11% over the last five years against a gain of 48% for

the broader market.

So the car makers’ pain is really going to be your gain as they scramble for sales,

and now with interest rates heading lower, 2020 could mean you finally trade in that

2005 Camry instead of just taping over the check engine light.[]

Now that you know why 2020 could be a great year to buy, WHEN is the right time to get

the best deal?

Let’s look at industry data on price discounts for three rules of when to buy a car.

This graphic shows the average discount on sticker price by day of the week.

Weekdays average a discount just over 8% off the sticker price while your best bet on weekends

is seven and a half percent.

Now I know that half a percent extra discount doesn’t seem like much but it’s going

to add up when we look at these other rules.

Next we see a graphic on average discount by month with October through February easily

beating the other months for discounts.

In fact, the average discount off sticker price in December is more than double what

you’ll get in June.

And when we look at these discounts, you really get a sense for when to go car shopping for

the best deal…when nobody else is car shopping!

It makes sense, right?

If dealers are trying to make their sales quotas, they’re feeling pretty good during

those breezy summer weekends when everyone is out on the lot.

If you won’t sign on the dotted line, there’s going to be someone right behind you willing

to pay up.

Now fast forward a few months to those wet, chilly November afternoons.

It’s a weekday, Sam Shyster has been sitting around all day without a single walk-in and

he needs to sell a car!

One more rule here for when to buy a car before I reveal the absolute worst time to buy and

those three negotiating hacks.

You might also consider the last few days of the month.

Dealerships constantly run incentive contests for their sales staff and its almost always

for month-end or sales over the quarter.

That means come those last few days, every dealer is going to be hungry to close just

one more sale to meet their quota.

Taking all this together, when is the best time to buy a car…maybe a cold, wet weekday

in late November.

What about those great holiday sales though?

Those huge, must-sell discounts?

First of all, love that last one.

Remember and Honor this Memorial Day by buying a car…God bless it!

Anyway…these are the biggest scam in car dealership.

People have been conditioned for these ‘special’ sales and automatically think they’re getting

a great deal even without thinking about the numbers!

Just remember the golden rule here that tied those other three together, if everyone else

is out car shopping during that CRAZY President’s Day sale…you shouldn’t be.

Now let’s get to those three negotiating hacks that are going to get you a better deal

on a car no matter when you buy, but first I want to get your opinion.

When you go car shopping, do you buy new or used and why?

Do you buy new for the reliability or comfort or maybe used for the price?

Scroll down and tell us in the comments, do you buy new or used and what are the factors

that affect your decision.

So now those three negotiating hacks and I want you to use these in this order.

First is understand that financing is the single biggest profit for a dealership.

These dealers, they’re probably only getting the cars from the manufacturer for a markup

of two to five percent.

That’s not much to live on so they make most of their money by working with finance,

lending you the money to buy at ten percent.

Here’s where it gets really bad though.

To make even more on that loan, the dealer is going to show you car payments on different

terms from 60 months all the way to eight years.

They’re going to push you into getting that loan for as long as possible so they collect

that 10% until their kids are out of college.

Avoiding this financing trap means going in with your own financing, either through a

bank loan or another source.

Now that doesn’t mean accept any loan with a higher rate just to avoid the dealer financing.

I’ll link to a few loan companies I’ve used in the video description below but make

sure you compare rates and don’t get in over your head.

Next is to negotiate on everything, I mean everything.

Get their lowest offer on the car by looking around a little and then acting like you’re

not that interested.

Make sure you keep a mental note of all the add-ons the dealer wants to offer with that


Then you’re going to start asking for extras.

You can ask for an extra year on the service agreement.

Maybe you want a couple new tires thrown in the deal.

If they can’t meet you on these, then shave a little off the price they offered.

You can also negotiate on the extras the dealer was going to offer.

So if initially they were going to offer a one-year warranty for a certain price, ask

to drop a thousand off the price and lose the warranty.

Next here, and you have to be strategic about this, is don’t say anything about your trade-in.

If they ask about your car, say you’re passing it down to a son or daughter.

You want to get to the absolute lowest price they’ll offer before you take that extra

couple of grand off on your trade-in.

So even if you said you didn’t have a trade-in or weren’t going to use it, bring it up

as a ‘What-if’ after you’ve already negotiated the lowest possible price on a


I guarantee you, use these three rules for when to buy a car and the three negotiating

hacks, you will save thousands on your next car.

Give yourself a couple of months for car shopping.

Go out and see what kind of a deal you can get, just walk away and keep a list of prices

you’re seeing from different dealers.

You’re going to get the best deal possible at the lowest price.

Click on the video to the right to see exactly how much house you can afford including two

ways to calculate it and tricks to get a better price.

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