Understanding the Luxury Car Market

The luxury car market is a bit different from the mainstream auto industry. While the core principles of supply and demand still apply, luxury brands often have specific sales targets and model year changeovers that create unique buying opportunities. Dealerships, especially those representing premium brands, are often incentivized to meet quarterly and annual sales goals. This can lead to more flexibility in pricing and negotiation during specific periods.

It’s also important to recognize that “luxury” itself can be subjective. It often implies superior craftsmanship, advanced technology, higher performance, and exceptional customer service. When you buy a luxury car, you’re often paying for more than just transportation; you’re investing in an experience. Knowing when to buy helps ensure you get the most value for that investment.

The Best Times to Buy a Luxury Car

Several times of the year present prime opportunities for purchasing a luxury vehicle. These periods often coincide with dealership sales goals, new model releases, and seasonal demand shifts.

1. End of the Month, Quarter, and Year

This is arguably the most significant time to buy any car, including luxury models. Dealerships and their sales staff often have quotas they need to meet to earn bonuses or hit specific sales targets. When they are close to achieving these goals, they are more motivated to offer discounts and be flexible on pricing to close a deal.

• End of the Month: Sales managers are looking to hit their monthly targets. If a dealership is slightly behind, they might be more willing to negotiate to make that final sale.
• End of the Quarter (March, June, September, December): These are crucial periods for dealerships. Meeting quarterly targets can unlock significant bonuses for the dealership and the sales team. This often translates into better deals for you.
• End of the Year (December): This is the ultimate deadline. Dealerships are desperate to clear out inventory from the current model year to make way for new arrivals and to meet their annual sales objectives. You’ll often find the most aggressive discounts during this month.

Example: Imagine a luxury dealership needs to sell 50 cars this quarter to get a big bonus. If they’ve only sold 45 by the last week of September, the sales manager might authorize significant discounts on remaining inventory to hit that 50-car mark. This is your opportunity!

2. When New Models Are Released

Automakers typically introduce new or significantly redesigned models annually. This usually happens in the fall, with new model year vehicles arriving at dealerships starting around September or October. When the latest versions of a luxury car hit the showroom floor, dealerships need to make space for them.

This means they become more eager to sell off the outgoing model year’s inventory. The previous year’s model might still be brand new, but it’s now considered “last year’s model.” This creates a perfect storm for buyers looking for a deal on a car that is essentially new but priced to move.

Example: A new generation of a popular luxury SUV is set to be released in October. By September, the dealership has a significant number of the outgoing model year still on the lot. They’ll be offering attractive incentives and lower prices to clear this inventory before the new models arrive.

3. Off-Season Buying

Certain types of luxury vehicles are more in demand during specific seasons. Buying against the typical demand can lead to better pricing.

• Convertibles: These are most popular in the spring and summer. Buying a luxury convertible in the fall or winter, when demand is low, can result in significant savings. Dealerships are more motivated to sell them when they aren’t actively being sought after.
• SUVs and All-Wheel Drive (AWD) Luxury Cars: These are highly sought after in the fall and winter, especially in regions with snow and ice. Buying a luxury SUV in the spring or summer, when demand is lower, can provide an advantage.

Example: You live in a climate where convertibles are enjoyed year-round but are significantly less popular in January. A dealership might offer a much better price on a new or certified pre-owned luxury convertible in the winter than they would in May.

4. Holiday Sales Events

Many dealerships participate in special holiday sales events. While these can be found throughout the year, some are particularly lucrative for luxury car buyers.

• Memorial Day
• Labor Day
• Black Friday
• President’s Day

These events often come with special financing offers, cash-back incentives, or advertised discounts. While the best deals are often at the very end of the year, these holiday periods can offer additional opportunities to save.

Example: A luxury brand might offer 0.9% financing for 60 months on select models during a President’s Day sale. This can significantly reduce the overall cost of the car, especially if you plan to finance.

5. Certified Pre-Owned (CPO) Programs

While not strictly a “time,” buying a Certified Pre-Owned luxury car is one of the smartest ways to get into a premium vehicle at a lower price point. CPO vehicles are typically late-model, low-mileage cars that have undergone rigorous inspections and come with extended warranties. The depreciation hit that a new luxury car takes in its first few years is the biggest cost saving for CPO buyers.

The best time to buy a CPO luxury car is often similar to buying new: end of the month/quarter/year, or when new models are released, as dealerships are looking to move inventory. However, the inherent savings of CPO make it a year-round good strategy.

You can learn more about CPO programs from authoritative sources like Consumer Reports.

When to Avoid Buying a Luxury Car

Just as there are optimal times to buy, there are also periods when you might pay a premium. Being aware of these can help you time your purchase more effectively.

• Early Spring (March/April): While the end of Q1 is good, the beginning of spring can see increased demand for convertibles and sports cars. Dealerships may be less inclined to offer deep discounts as demand rises.
• Summer Holidays (July 4th): While there might be some promotions, the summer months generally see steady demand for vehicles, especially SUVs, as people take road trips. Deals might not be as aggressive as at year-end.
• New Model Launch Period (Immediately after release): Right when a brand-new, redesigned luxury model hits the showroom, discounts are usually scarce. The dealership knows it has a desirable, high-demand product and has little incentive to negotiate heavily until inventory builds up or the model year starts to age.

Navigating the Dealership: Negotiation Tips

Timing is crucial, but your negotiation skills can seal the deal. Here are some tips specifically for luxury car buyers:

• Do Your Research: Know the invoice price, market value, and any available incentives for the specific model you want. Websites like Kelley Blue Book (KBB) and Edmunds (Edmunds) are invaluable.
• Focus on the “Out-the-Door” Price: Don’t get bogged down in monthly payments. Negotiate the total price of the car, including all fees and taxes, before discussing financing.
• Be Prepared to Walk Away: This is your strongest negotiation tool. If you’re not getting the deal you want, be willing to leave. The dealership might call you back with a better offer.
• Consider Pre-Approved Financing: Get pre-approved for a loan from your bank or credit union. This gives you leverage and a benchmark against the dealership’s financing offers.
• Be Polite but Firm: Luxury dealerships often pride themselves on customer service. Being respectful can go a long way, but don’t be afraid to stand your ground on pricing.

Luxury Car Buying Timeline: A Summary

To help you visualize the best times, here’s a quick look at the typical automotive sales cycle and how it applies to luxury cars:

Frequently Asked Questions (FAQs)

When is the absolute best time to buy a luxury car?

The absolute best time is typically the last week of December. Dealerships are highly motivated to meet annual sales targets, leading to the most aggressive discounts and incentives.

Are there good deals on luxury cars in the summer?

While some summer holiday sales events might offer incentives, summer generally sees steady demand for vehicles like SUVs. You’re less likely to find the deep discounts available at year-end or during new model changeovers.

Is it better to buy a luxury car at the beginning or end of the month?

It’s almost always better to buy at the end of the month. Salespeople and dealerships are working to meet monthly quotas, making them more open to negotiation in the final days of the month.

Should I wait for the next model year to be released to buy the current model?

Yes, waiting until the new model year vehicles are arriving (usually September/October) is an excellent strategy. Dealerships will heavily discount the outgoing model year to clear inventory, giving you a great opportunity to save.

Are certified pre-owned (CPO) luxury cars a good deal year-round?

Yes, CPO luxury cars offer significant savings due to depreciation and come with warranties. While timing can still yield better deals, the inherent value of CPO makes them a smart purchase any time you’re looking to save money on a premium vehicle.

How much can I expect to save by buying at the right time?

Savings can vary greatly depending on the brand, model, and current market conditions. However, by strategically timing your purchase, you could potentially save anywhere from 5% to 15% or more off the MSRP, especially on outgoing model years or during year-end sales.

Conclusion: Timing Your Luxury Purchase Wisely

Buying a luxury car is a significant investment, and like any major purchase, timing can play a crucial role in maximizing value. By understanding the sales cycles of the automotive industry and leveraging specific periods like the end of the month, quarter, or year, you can position yourself for the best possible deal.

Remember to also consider the release of new models and seasonal demand for certain vehicle types. And if new feels out of reach, don’t forget the exceptional value offered by Certified Pre-Owned luxury vehicles. Armed with this knowledge and a bit of patience, you can drive away in your dream luxury car knowing you made a smart, well-timed purchase.