With rising interest rates, low used car inventories and supply chain issues causing delays in new car production, you can expect to pay more for a vehicle now than you might have in recent years, no matter how strategic and informed you are about the purchase. While there’s not much you can do about the supply chain crunch or inflation, there are a few factors within your control that could save you money on a new or used vehicle. (It goes without saying that we already know how you can save some money on your car insurance!) If you have the luxury of waiting for the most opportune time for buying a car, putting timing to work in your favour could translate to some savings.

Is there really a best time of year to buy a new car?

Yes, and timing your purchase right can keep money in your pocket. For example, the late summer and early fall are great times to look for a car, since this is when the new vehicle models start arriving. All those new models will need space, which means dealerships will need to clear out the older models. They’ll often lower prices on the current year’s models in order to sell them fast.

December is also a great month to shop, and not just for Christmas presents! Salespeople will be looking to reach their yearly targets before the year ends, so you might find big cash discounts or lower interest rates during the holidays.

You should also check the calendar each month. Visiting a dealer at the very end of the month is smart, since again, salespeople will want to hit their monthly sales goals. If you’re lucky enough to find one who’s behind on sales, they might be more willing to give you a better price just to mark the car as sold.

Finally, think about the weather: January and February are cold and snowy throughout most of Canada, and most car shoppers won’t want to walk around a sales lot in freezing temperatures. A dealer might offer a great deal just to make a big sale during these quieter winter months.

What factors impact new car prices?

The price tag on the window is only the starting point when buying a vehicle. Your final cost depends heavily on which province you live in due to different tax rates. Here’s a few more factors to consider when you’re considering the best time to buy a car:

Slow dealership days

Like any retail business, car dealerships are busier on some days than others. That means that if you visit a dealership on a busy day, you’re less likely to get a great deal buying a car than if you’re the only customer in the showroom. For best results aim for midweek, especially days when it’s raining or snowing, or public holidays when other customers will be less inclined to venture out.

New car model releases

While supply chain crunches can cause significant delays in the arrival of new cars at dealerships, the new year’s models usually arrive in late August and September, making dealers more eager to clear out the old year’s stock at that time. If you don’t mind driving the outgoing model, this could be a great time to get one at a discount. Likewise, if you have your heart set on a particular new-model vehicle, expect to pay a premium to drive it off the lot as soon as it arrives (when you’ll be competing against many other similarly interested buyers). Like most consumer goods, the more popular something is, the more you will pay for it, so the longer you can wait, the better your chances are of scoring a deal.

Peak season 

Traditionally, the peak buying and selling season for vehicles is the spring and early summer, ahead of summer vacations and road trip season. While that could mean a wider selection of vehicles for sale, the spike in demand might also translate to higher prices. For this reason, if you’re looking for the best time to buy a car, consider waiting for the fall (or better yet, the end of the year) to make your purchase if you can.

Best months to buy a car

Buying a new car is a big financial decision for Canadians. However, if you time your purchase correctly, you can keep more money in your pocket. Knowing the market cycles is the key to getting a great price.

December is often the top choice for buyers. As we’ve discussed above, it’s a combination of dealerships wanting to clear their lots out before the year ends, plus they’ll want to hit their annual sales targets.

January and February are excellent months as well. Because business is slow due to typically poor weather, salespeople might fight harder to win your business.

But don’t count out August and September: they’re important months in the market cycle because new models usually arrive in early fall. This triggers a "clearance" period where you can find deep discounts on cars that are still brand new. If you don’t care about getting the absolute most up-to-date model off the line, this is a good time to buy a car!

Finally, keep an eye out for sales events around Black Friday in November. Many manufacturers offer special interest rates or cash incentives during this time. By waiting for these specific windows, you’ll be in line to get the best value possible.

Best day of the week to buy a car

When trying to figure out the best time to buy a car, it’s not just months you should consider. Finding the right day of the week can also save you money! For example, most prospective buyers head to the dealership on the weekend, which means Saturdays are usually packed with people. This won’t work in your favour, since salespeople will already be in demand and they’ll likely not offer you big discounts.

For the best deal, plan your visit for early in the week; Monday, Tuesday, and Wednesday are your best bets. On these days, the lots are typically quiet, so sales staff have much more time to focus on you. Also, they’ll be looking to start their business week with a sale, so there’s the chance they’ll try harder to make a deal work. If you can, try to go at the end of the day or near closing time. A salesperson might agree to a lower price just so they can wrap things up and get home.

Tips for getting the best deal on a new car

Getting a great deal on a new car is easier with a plan. Start by doing research online to find the invoice price. This number tells you what the dealer paid, which helps you during price talks.

As we’ve mentioned above, you now know the best months and days of the week to shop for a car. Extra tip: Ask for "all-in" pricing. In Canada, advertised prices usually must include all fees and charges. Don’t let them add hidden costs later!

If you have an old car to trade, handle that last, and agree on the new car's price first to keep the math clear. Finally, be ready to walk away. If the offer isn’t good, don’t be afraid to leave it on the table. There are many other dealers who want your business, and staying patient is the best way to save your money.

Best time to buy a used car

What if you’re looking to buy a used car rather than a new one? Well, that involves slightly different timing strategies:

• For new cars, late summer and early fall are smart times to shop, because of the incoming new models and the need to clear out older ones. Dealerships are rushing to meet yearly sales goals, so they offer cash rebates and low interest rates.
  
  
• Used cars, however, follow a different pattern. The best deals often appear in January and February. Also, many people trade in old cars during the fall new-car season, which thereby increases the supply of used cars by winter.

In short, buy new cars at year-end for clearance deals, but buy used cars in the dead of winter when demand is lowest.

Make sure your car is covered with Sonnet

While being strategic about when you buy your next vehicle could make an impact on how much you pay for it, this is only one consideration among many. Buying a vehicle, new or used, is a complicated process with many variables to consider – including your schedule. Add in the current landscape of inflation, scarcity, and production delays, and the best time to buy your next vehicle might just be whenever you find the one you like, in the condition you want, at the price you can afford. But no matter what, Sonnet’s got you covered for your car insurance – check out how much you’ll be able to save on coverage for your new (or used!) car.

Jeremy Freed is a freelance writer and editor based in Toronto. His writing about fashion, travel, food and design appears in Sharp, Harry and re:Porter magazines, among many others.

Jeremy Freed is a paid spokesperson of Sonnet Insurance.