If you have been planning to buy a car, then fret no more! December is coming, bringing with it the biggest and best year-end discounts. This month offers a big bonanza for prospective automotive customers, with discounts being offered by all and sundry. The end of the year is probably the best month to buy a car, in terms of the pricing.
Why December, though?
- Resale value of the car is determined by the year of manufacturing, not year of selling. And cars that are made in a particular year and are left unsold at the end of the year become ‘a year old’, in principle. So, a 2017 Honda City will have less value in Jan 2018 for the buyer than it has in Dec 2017.
- Dealers need to clean up and make space for newer models, so they are more eager to get rid of the old ones.
- After the festive season of Diwali and Dussehra, sales slump in December. Offers and discounts encourage prospects to get serious about buying a car.
- Like all other companies, car companies also need to meet their sales goals. And discounts are the best way to boost sales.
It’s not as rosy as it seems though.
The biggest drawback is the most obvious one. Within a month of you buying the car, it will be 1-year old. So the resale value of the car will dip. However, if you are planning to keep the car for 4-5 years, this difference of 1 year won’t make much of a difference.
Moreover, if you bought a car that has a new model being launched early next year, then you lose out on all the upgrades that the new model offers.
So, should you buy a car this December?
As we said, if you are planning to drive the car for at least 4-5 years, and are price-savvy, then December is the best month for you to buy a car. However, if you are planning to sell it off in 2-3 years, then wait a month and buy in January. Watch this space for more updates on the different discounts auto majors will offer this December!