Is it true that the last day of the month is the best time to buy a car? Is the same about leasing?

Answer 1

Yes, it is. Dealerships get kick-backs from the manufacturer for numbers sold, so if a dealership has to take a loss of a few grand on one car to make ten times that for the number sold, the last day of the month is the day they have to do it.

Leasing and buying are the same thing as far as buying time goes. The only major difference is does the bank hold the title or the leasing company. You still have to negotiate a price and the rates are variable just like in buying.

Lastly, if you don't keep the car for the full five years of a standard car loan, why pay interest on the whole value of the car. In addition, you can't get upside down in a lease, and when it's done, turn it in a get a new one. A lot less headaches. Ignore the kids trash-talking leasing. If you want to get a new car more often, lease. And lease on the last day of the month to get the best deal......

Answer 2

Not entirely true. Sometimes salespeople will push to try and get you to buy so they can meet a quota, or because the deals are changing the next month. But, it's impossible to know what it will be the next month. An educated buyer can get the same deal on the 11th of the month or the last day. The key is to know what you are doing, if you don't, you can get beat any day of the month.

Answer 3

Lease payments are based on the capitalized cost (selling price) of the vehicle, so it is beneficial to buy/lease when dealers are desperate to move their cars.

December is an excellent month to buy, especially Christmas and the last weekend/day of the month.

Answer 4

My uncle was a car dealer. There are 8 ways the dealer makes money.

1. Sells you the car for more than what he paid. All dealers pay extra to the manufacturer, then get rebates, so do not buy into the "we are selling it at our cost" B.S. Car dealers can sell cars all day at below their cost and still make lots of money off you.

2. They get a commission from the finance company or leasing company.

3. They pay you less than retail for your trade in then resell it.

4. They add on cheap "extras" and charge you hundreds. Dealer prep, fabric protection, undercoating, upgraded wheels, floor mats, etc. etc.

5. They sell parts at really high prices

6. They sell extended warranties anfd keep 1/3 as their commission.

7. They do warranty service on your car and get paid by the manufacturer.

8. They service your car and you pay them.

The last day of the month is a myth.

DO NOT LEASE A CAR unless you own your own business and can use it as an expense. Fools lease cars. You get trapped into leases and cannot buy your way out. DO NOT LEASE A CAR!

Answer 5

Since most compensation plans end on the last day of the month, it is the best day for such a purchase or lease since some of the sales people will be trying very hard do meet their quota as well as the dealership trying to meet theirs as well.

Answer 6

In general, yes it may be better at end of the month, espcially if the dealer hasn't made his sales quota. But you don't know that.

Further, if the model you want is in high demand and short supply, you probably won't get a better deal at month-end.

If a manufacturer has a special promotion going on, it might be better to wait until the end of the promotion, which might not be the end of a month - but usually is.

Therefore, the answer to your question is that you have a better *chance* at a better deal at month-end, but no guarantee.

Answer 7

Not sure but it makes sense. If they have a monthy quota to fill they may be more likely to give you a deal at the end of the month. I know I am more likely to sell my product (home business) for a lower price at the end of the month if it has been a poor sales month.