Why September Is The Best Month To Buy A Car
We might not like to admit it but September is here. This not only means that Autumn is also fast approaching, but you might have noticed the sun is setting earlier and despite holding on to every last bit of sunshine we can, it is appearing less frequently and has not been as hot as it has been. As well as that, for those with children the plans for returning to school are well underway and the long summer holidays are rapidly dwindling. But all is not lost.
You may be surprised to know that September is actually one of the best months of the year to buy a car, and not just because you’re trying to cheer yourself up after the summer. Usually the change from one month to another doesn’t necessarily signify much on the car market, yet when it turns from August to September it potentially can mean quite a lot. Read on to find out the reasons why September is potentially the best month to buy your next car:
There Is More Choice
With the first of the month signalling the new number plate change, more people are looking to buy or collect their new car. Those collecting their brand new cars also have a vehicle to part exchange and there are more pre-owned vehicles available on the market. Not only does this mean more of the model you may be looking for are available, but crucially more are likely to have just the right specification you are looking for. With more cars available it is also likely that the prices will be more competitive as there are more examples on the market for sale, especially as the used car market sales figures are currently experiencing a 5-year high.
Dealerships Are Feeling The Pressure
The start of the month may be when the numberplates change but also, the end of September is the end of another financial quarter for most businesses. That means that car dealerships are under pressure to meet targets whether they are main dealers, franchises or independent dealerships. As part of the pressure to meet their targets they are also looking to register as many new cars as they can before the end of the month, and as such often go to greater lengths to ensure they can seal your business. This puts the opportunity for negotiating in the buyer’s court and the dealership is much more likely to offer greater incentives to guarantee a sale, whether this is through a deposit contribution, a saving on the list price or including must have options for no extra cost.
The ZEV Mandate
Lately, the pressure to sell electric cars is greater than ever thanks to the Government’s ZEV Mandate. Many manufacturers struggled to meet last year’s 22% target for EV sales, and therefore are under even more pressure to try meet 2025’s 28% target, so there is even more emphasis than usual to tempt customers into an EV. Not only that, but it’s only going to get even more strict from now until the 2035 combustion engine ban deadline. Those that don’t meet the target have hefty fines imposed, as much as £15,000 per car, so it isn’t something they can ignore. There are already some discounts to be found on electric cars as well as the Government’s new incentive scheme, offers for free charger installation and even additional specification offered at no extra cost. So expect the last few months of the year to see even more incentives from EV manufacturers.
Dealerships Pre-Register Cars So They Can Achieve September Targets
In order to ensure that sales targets are met for the end of the financial quarter, dealerships will often pre-register their leftover new car stock to effectively appear as if they have sold. This means that any unsold cars are sitting on the forecourt at risk of depreciating, costing the dealership and potentially the manufacturer money. Not only that, but pre-owned cars they already had on the forecourt is also sitting there depreciating causing excess cars in stock, storage problems and a need to offload them as soon as possible to balance the books. The pressure to achieve targets and the fear of depreciating cars in stock is enough to ensure that dealerships tend to be open to offers, and many have ‘events’ to make it look like they are doing the customer a favour with the offer of ‘exclusive’ or ‘VIP’ deals. September can really be a ‘buyer’s market’.
The End of Summer
Dealerships have spent the summer stocking up on sports cars, supercars and convertibles to tempt people for the summer months. With the fairer summer weather dwindling and before the cooler autumn conditions become too commonplace, they will be keen to sell as many of the cars more suited to the Summer months so they can be replaced with things more Winter friendly like SUV’s. Pricing for these types of cars will be more appealing as the month rolls on and you might be lucky that if we get an Indian Summer, you might be able to enjoy a convertible in the late summer sun.
Beat The Price Rises
For the same reason that sports cars, supercars and convertible prices are falling, it won’t be long until SUV prices begin to rise as the weather gets worse and the nights draw in. The dealership world is very reactive to the seasons changing as demand rises for a particular type of vehicle and they will already be looking to change their stock for more suitable offerings for the winter months. This means that you are in a great position to secure an SUV for the winter months before the prices begin to rise by the end of September and the summer weather dwindles.
The Economic Climate
This is specific to more recent times, but is to do with how much interest rates had previously risen and have now began to fall. Many customers who previously bought their vehicles when rates were high, are now looking to take advantage of lower interest rates either by refinancing their current finance package or by switching to their next vehicle.
By using a car finance broker we are in a position where our unique director level relationship with our lenders means that we are constantly assessing and negotiating the best possible rates for our customers. As well as this, we also have ‘locked in’ rates with a number of our panel of lenders and as such can offer bespoke finance packages for you and your circumstances at a rate that many dealerships cannot match. So, if you had previously bought and funded a car through a dealership, you are in the perfect position to now look at refinancing your current package to potentially save money whilst keeping the car you have.
Speak To Oracle Car Finance To Get Your Plans Underway
These are the reasons why September is the best month to buy a car, and your dedicated Oracle Account Manager is here to ensure that your car finance is something you don’t need to worry about over the coming month. With over 2,900 Trustpilot reviews with an overall rating of 5 out of 5, as five-time winners of the Best Specialist Car Finance Provider award over the past six years at the Credit Strategy Awards, and by passing over £2billion funded for our customers, you too can find out why thousands of people trust us time and time again to find a smarter, tailored funding solution when looking for your next dream car.
Get in touch with us today to discuss your car finance options by clicking HERE.