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The Best Time To Get Low New Or Used Car Loan Rates
By EchoBay Loans Staff Writer

If you can be flexible about the time of year that you buy a car, you can save a substantial amount of money on the price of the car as well as the total interest paid on your new car loan. There are typically several time periods during the year when it is a buyer's market. Use the following times to your advantage and your wallet will thank you.

When new models are rolling in
In the summer and fall, the new-year's models begin to appear on the lot.
The dealer is very anxious to rid his lot of any previous year models. This can be the best time to buy the current year model, especially so if the new-year model has undergone extensive body changes. Dealers typically offer increased rebates and low interest rates on either a new car loan or used auto loan at this time.

During rate and rebate wars
When sales are slow, dealers begin to compete with each other by offering specials to entice buyers to come on to the lot and make a purchase. These specials can be increased rebates or low interest rates for a new car loan or a used auto loan. A lower interest rate by only one or two points on a new or used auto loan can save you hundreds, if not thousands, over the life of the loan.

This is also a time of year when you can use the offer of the dealer down the road to get the car of your dreams at a reduced price or your new car loan at a reduced rate. Don't be shy about telling them what a competing dealer has offered you to get an edge in the game of negotiation.

The last two weeks of December
During the last two weeks of December, most people are consumed by holiday shopping and are not eager to make large purchases. Many see the Christmas and Hanukah season as the most expensive time of the year and are trying to conserve their money. The car dealers know they must offer incredible savings for a new car to be outside on Christmas morning. You can generally get a new car loan or a used auto loan at a reduced rate during this time of year since dealers are usually willing to cut their loan interest rate mark-up to make a better deal for you.

Not only is the dealer trying to clear the lot of as much inventory as possible before year-end, they have year-end sales goals they are trying to meet. When it comes down to meeting the goal or not, many dealers will do just about anything to ensure it's met. Use this to your advantage and shop during the holiday season. The closer it is to New Year's Eve, the more likely they are to sweeten your deal.

The end of the month
For salespeople, there is always a monthly quota that must be met. Not only are there individual goals but there are goals for the dealership as well. As the month draws to a close, the dealer will be motivated to meet sales goals. In order to do this, they might give you a better deal to entice you to buy. One easy way to get the best deal is to visit the dealership on the last day of the month with your loan check in hand. When you have decided on a final price, tell them you need a day to think about it and watch how determined they become to try to get you to buy today. For once, you can be in the power seat in a dealer's showroom!

If possible, try to be flexible on when you buy your car. At the very least, wait until the end of the month to make the purchase to save even more money on your new car loan or used auto loan.


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