Car Buying 101: End-of-Model-Year Cars Lead to Great Savings

Although most car companies release a new model every year, that doesn't always mean that the old model has sold out. In fact there may be plenty of outgoing models left on the car lots of their dealerships. Since dealerships have to make room for the upcoming model, they need to dispose of their old stock quick, and that’s when you see their prices drop.

The changeover of models is one of the best times to buy and get a good deal on a new car, so you can expect bigger discounts when you're looking at an end-of-the-year-model-year car. Here are tips on how you can boost your savings further.

1. Shop at the right time

First and foremost, it's important to understand that that there is no standard end-of-model-year. In fact, some model years can even stretch to five years or more. The best way to confirm if a car's end-year is approaching is by keeping an eye and ear out for the release of the next model. For example, if you learn that the release for the next model is sometime in November, then October would be a great time to shop for leftover new cars.

2. Be ready with the money

Make sure you've saved up for a 20 percent down payment and have got your mortgage pre-approved. By being prepared financially, you'll make the transactions smoother. You'll also find it easier to say yes or no to anything the salesperson offers you because you know what you can afford. It's also a good idea to consult your car insurance company so you'll know how much you'll be paying for coverage each month.

3. List down your priorities

If you have a specific model in mind, look the car up online and check its available features. List down your priorities for buying a new car, and make sure that the car you intend to buy satisfies these. Sure, you may save a lot on buying a small city car, but what good is it if your big family can't fit in it? Keep in mind that the savings you get may not actually be worth it if you can't get all the features you need.

4. Be ready to compromise

Leftover cars often mean that nobody else wants them, so you may be forced to go with a color or set of features you don't like. Focus on needs more than wants, as well as maximizing your savings. Learn to live with what you get if it saves you money.