If you've been looking to buy a car, the end of the calendar year could offer some good deals.
In the weeks leading up to Christmas and New Year, retailers and dealerships will try to clear out current model-year stock and make room for new models. Often, there is a build-up of cars due to a delay in the delivery of vehicles from their country of origin.
In addition, a year-old model is generally harder to sell as the New Year approaches because consumers know there will soon be another, more current, model on the market.
As a result, car dealerships are often more open to negotiation and will offer special discounts to clear the year-old models.
For car buyers who don't mind buying a year-old model, this is good news.
However, there are drawbacks to buying at the end of the year. For example, you may buy a brand new 2017 model tomorrow, but it is essentially a year old when you drive out of the dealership.
That may hurt your resale value when it comes to sell.
Another drawback is potentially missing out on a new design which is just around the corner. This means foregoing new technology and features offered in a newer model.
That said, when and what you choose to buy depends on your personal situation.
If you plan to have your car for several years, you will likely not mind the depreciation in value or the potentially outdated features. At the end of the day, you will save yourself money.
On the other hand, if you replace your car on a regular basis, say every two to three years, you are better off purchasing a new model car.
It means your car may not lose as much value when you end up selling it.
Regardless of your decision, it is important to be wary of offers and sales tactics such as zero per cent car finance.
They sound good on the surface but they can create a false sense of urgency and there may be underlying costs and conditions.
Therefore, you should do your research and never be pressured into making a purchase.
At Mortgage Choice, we can take the guesswork and hassle out of buying a car and help you find the ideal loan solution for your needs.
In addition, we offer a car-buying service for new cars, which allows us to do all the dealership negotiations on your behalf. So, the only thing you need to worry about is where you are going to take your new wheels for a spin first!