Buying a car is a major financial investment. To find the best deal, you can time your purchase strategically to cut down on how much you pay. Depending on the season, some periods could be a better time to buy a car in Canada to save money.
Key Points
- Purchasing a car during specific times of the year such as near the end of the month, quarter, or year may help you save money on a vehicle purchase.
- You may be able to swing a discount When dealerships are moving older models out to make room for new inventory.
- Be sure to use online tools and resources to find good deals and compare offerings.
When Is The Best Time To Buy A Car In Canada?
If you’re ready to buy a car and want to ensure that you don’t spend any more than you need to, consider timing your purchase strategically. Here are some of the best times to buy a car:
End Of The Month
When you go to a dealership toward the end of the month, you may be able to get some really competitive prices. Both in terms of commission and requirements for the job, salespeople rely on meeting their quotas. If you know that the sales have been slow at that particular location, whether due to market competition or a downturn in the economy, you can use that to your advantage.
A good way to assess if this is a viable plan is competitor research. If a dealership in the same community was offering a promotion during that month, it could lower the sales for other businesses.
End Of The Quarter
Similar to monthly quotas, car dealerships also have to meet their quarterly targets. This approach involves searching for a car some time towards the end of March, June, September, and December. During these times, you may have a leg up in negotiating a better price or additional perks.
End of The Year
Another great opportunity for car buyers to get a good deal is at the end of the year. Annual quotas can put pressure on salespeople and result in them giving in to your demands, leading to you getting a much more desirable price.
The best time is during the last couple of weeks of December. This is because the dealership may be trying to get rid of that year’s models in order to free up space for new vehicles. It’s also because the fiscal year is coming to an end. The company needs to wrap up its books for that year and wants to make as many sales as possible.
Year-End Sales
Additionally, as a market standard, you can access a variety of year-end sales. These discounts, while predictable, can offer savings and result in major discounts on new cars. Though these sales often last until the end of the year, they may want to start early.
If your approach is to find an existing sale instead of planning to leverage quotas against the dealership, it’s important to keep an eye out for earlier sales. This is a good approach for those newer to purchasing vehicles; who may not be as confident when approaching a dealership.
Be sure to stay up-to-date on the sales, since some come as early as Black Friday. Many dealerships let you subscribe to marketing emails, which can serve as a good opportunity to stay apprised of discounts. It helps when planning ahead to have all the information you need. This way, you can jump on the opportunity when a good deal comes around.
Is The Best Time To Buy A Car In Canada When New Models Are Launched?
New car models are launched annually. As a result, dealerships need to free up space on the floor for these newer, more profitable vehicles. The life cycle of a vehicle refers to the design cycle, meaning the same make of vehicle will be launched with new perks. So, you can get a better price on the existing vehicle.
Newer options are typically added to inventory between August and September. During these times, you can access better rates since the dealership needs space for its new inventory.
Is The Best Time To Buy A Car In Canada On Certain Holidays?
Discounts may be widely available during the holidays. In order to incentivize buyers, dealerships make prices very desirable. Since a lot of holidays, including Boxing Day, occur during slower sales periods, you may be able to snag a better price.
When a holiday occurs at the end of a quarter; and, ideally, the end of the month, it creates a perfect climate for savings. When the need to make a quota meets the regular savings offered by an annual sale for the holidays, you might be surprised by how much you can actually save. Keep an eye on discounts during long weekends like Labour Day and Thanksgiving. Often, there are very competitive discounts available during these times.
Are Promotional Periods The Best Time To Buy A Car In Canada?
In addition to the savings seen from holidays and end-of-year sales, individual dealerships will offer incentives to buyers to keep themselves competitive on the market. These range from reduced prices, cash-back incentives, lower rates, and deals when trading in your old model.
Stay up-to-date with the offerings from your local dealerships to optimize your savings. While it might be easier to look at only a couple of dealerships, it’s better to keep tabs on multiple dealerships to get a full view of the market.
Are The Off-Seasons The Best Time To Buy A Car In Canada?
Certain types of vehicles may sell better during certain seasons. For this reason, you may want to take advantage of seasonal trends in car buying, as follows:
Winter
The colder months of the year are typically considered a slower time for car sales in Canada. Fewer people are shopping for cars, giving car buyers more negotiating power.
Spring
Spring may see an uptick in demand for certain types of vehicles, like sports cars or convertibles, but it may not be the best time for discounts, as more buyers may be out looking for a new car. However, you may find deals on winter-friendly vehicles, such as SUVs, as dealerships move to their spring inventory.
Summer
Summer months can also be a great time to look for outgoing models as dealerships start clearing out older inventory to make room for fall models.
Fall
Fall may be a great time to buy a car, especially during model year-end sales. During this season, dealerships are more likely to offer discounts on outgoing models. Plus, you may see less competition among buyers, making the fall a potentially good time to shop.
How To Finance Your Car In Canada
There are many ways you can finance a car in Canada, including the following:
Banks
If you have good credit, you may want to see what your bank has to offer in terms of car loans. Banks tend to offer more competitive interest rates and terms, particularly for clients in good standing.
Dealerships
Dealerships often have their own in-house financing, which offers a one-stop shop for buying and financing your car. But in exchange for this convenience, you may have fewer options to choose from and may be offered a higher rate.
Alternative Lenders
You can also opt to take out a personal loan or a car loan with an alternative lender if your credit score isn’t high enough to qualify for a car loan with your dealership or bank.
While alternative lenders don’t put as much emphasis on your credit score, having good credit can help you qualify for better rates. Just be sure not to overextend yourself and take on more debt than you can handle.
| Amount | Interest | Term (Months) | ||
|---|---|---|---|---|
 | $500 - $50,000 | Up to 35% | 12 - 84 | Learn more |
 | $7,500+ | Varies | 24 - 96 | Learn more |
 | $500 - $35,000 | Starting at 29.99% | 9 - 60 | Learn more |
 | $500 - $10,000 | 12.99% - 34.99% | 9 - 60 | Learn more |
 | $5,000 - $40,000 | Varies | 12 - 72 | Learn more |
 | $5,000 - $45,000 | 4.90 % - 29.95% | 36 - 72 | Learn more |
 | Varies | 11.9% + | 12 - 84 | Learn more |
 | Up to $50,000 | Varies | 12 - 84 | Learn more |
Tips When Buying A Car
To get the most out of your vehicle purchase, consider the following tips:
Consider All Expenses
Make sure you consider all expenses involved in purchasing a vehicle, no matter how seemingly small. That includes gas, maintenance, repairs, insurance, parking, and other costs that come long after you’ve driven off the dealer’s lot.
Don’t Give Into The Pressure
Car salesmen want to make a profit on the sale of a car, so they’ll do what it takes to nudge you in the direction of a purchase. But don’t let pushy sales tactics pressure you into making a hasty decision. Buying a car is expensive, so you want to ensure you’re ready to commit financially. Take your time, and don’t buy a vehicle that ultimately doesn’t suit your needs.
Negotiate
There’s no harm in wheeling and dealing with the dealership to try and get the best deal possible. Whether that involves whittling down the purchase price or convincing the salesman to throw in a few incentives, negotiating may be a great way to get the most out of your purchase.
Watch Out For Add-ons
Even after you’ve settled a deal with the salesman, there may be other ways to get you to spend more. From extended warranties to window tinting, to rust protection and beyond, be wary of add-ons that you may be suckered into buying. Before you head to the dealership to buy a car, make a list of things you want, and leave everything else out.
How To Find The Best Deals
To find out where the best deals on cars are at any given time of the year, consider using the following resources:
- Price Comparison Websites And Apps: There are many online platforms and car buying apps available, like AutoTrader or CarGurus, that you can use to compare prices and monitor trends.
- Manufacturer Websites: Check manufacturer websites to find promotional offers, incentives, and financing deals.
- Dealership Newsletters: Use your email address to sign up for dealership newsletters and receive updates on upcoming sales events and offers.
Timing The Purchase Of New Vs. Used Cars
Timing your vehicle purchase might matter more if you’re searching for a new car. Here’s how buying new versus used compares in terms of timing your purchase:
| Buying New | Buying Used |
| The end of the year and model year-end sales are the best times to buy a new car. These time frames offer the biggest discounts and incentives for outgoing models. | Used car prices don’t fluctuate as much compared to new cars. That said, you can still find good deals during slower months, like January & February. |
Final Thoughts
Getting a good price for your new vehicle is all about understanding the nuances of the market. Though the car sales industry may seem straightforward, there are a lot of ways you can use seasonal, annual, and even monthly cycles to your advantage. When you plan ahead and do thorough research beforehand, you put yourself in a much better position when speaking to car salespeople.
