It is often said that you should always try to buy cheap used cars in Fairfield CA before new year price rises. There is some truth to this statement, however there are also some situations in which it doesn’t hold as true as others. Here is a closer look at why it can be a good idea as well as when the time of year won’t matter as much.
Fundamentally, the basic concept that needs to be understood is why purchasing cheap used cars in Fairfield, CA should be done before the new year comes around. The core tenet behind this philosophy is based upon how dealerships handle their inventory. There are several reasons that dealerships will offer lower prices before the new year rather than after. The first is to maximize revenue by the end of the fiscal year. Many dealerships, especially if they sell new and used cars, have valuable performance incentives that must be met by the end of the year. In many cases, these incentives can be high enough that the dealership can generate more income by selling their cars at a small loss. As a result, the savings will only last until January 1 when the prices will return to normal.
Another reason that it is beneficial to buy cheap used cars in Fairfield, CA before new year price rises is because dealerships are trying to minimize their inventory. In order to do this, they need to sell as much volume as possible. In many cases, they will even add a greater number of cars to auto auctions then they will throughout the earlier parts of the year. As a result, auto auctions are a great place to find the cheapest used cars and still benefit from the seasonal discounts.
A final reason that is car prices dip before the new year is in order to compete with all of the new car advertising and special introductory prices. With so many people focusing on the upcoming models, there are less people interested in used cars.
The best way to buy cheap used cars in Fairfield, CA before new year price rises is actually through auto auctions. The reason for this is twofold. First, car dealerships and lending institutions are doing everything they can to liquidate their inventory. In order to do this as quickly as possible, they will place more cars into year-end auctions then during the early part of the following year. As a result, there are a lot more vehicles available. As a result, the prices just before the new year dip dramatically.
The second reason is because there will be less bidders at these auctions competing against you. While businesses are trying to liquidate their inventory, the average person is looking towards the upcoming year and is trying to minimize their spending because of Christmas expenses. In the end, this means that auto auctions will not only have a lot more used cars to choose from but will also have less bidders to compete against.