When does a new car’s price drop?

By Ané Theron

If you’re itching to buy yourself a set of shiny new wheels, you’ve probably wondered when the best time would be to take the plunge. Can you score a better deal at certain times of the month of year? The answer is yes. There are definite factors that play a part in slashing that new car’s price.

Right after the launch of a new car

If you’ve seen launch specials being advertised, it is because the manufacturer has only ordered a certain amount of cars for the first sale consignment, often done many months before the actual launch and the car becoming available to the general public. The reason you may be able to get a really good deal, is because these cars have to be paid for in advance. The next consignment will most likely cost more if the Rand has weakened, and you’d be surprised how much of a difference these few months can make to your wallet.

Buying just before the launch of a new model

Dealerships are especially keen to rid their showroom floors of old stock when a new model launch is imminent. And as space at the dealership is limited, you may find that new car’s price dropping even more as the new stock comes through the door, as that old stock is costing the dealer money every day, just by being there. 

Just remember that your ‘new’ car’s resale value will be lower because of the new model being released that same year.

The period between July and October is usually a good time for new-car negotiations, since dealers have to make space for the next model year's releases.

Towards the end of certain months, and at the end of the year

All car salespeople have a target to make, and at certain times of the year you will be much more likely to get a good deal, for exactly this reason. Towards the end of every quarter you will see dealerships pushing harder to make sales targets, and that means bringing their prices down, so do go ahead and negotiate for that new car  towards the end of March, June, September or February.

It goes without saying that good deals can be had towards the end of the calendar year and financial year-end, while dealers are under pressure to meet yearly targets and to earn some incentives from the manufacturers.

Click here to read ‘How much discount can I get when I buy a car?’, by Martin Pretorius.