The best days to buy a car are typically Mondays, Tuesdays, or Wednesdays, as dealerships are less busy, giving you more salesperson attention and negotiation time; you want to avoid busy weekends, but for big holiday sales (Memorial, Labor Day), the weekend can be great, and the end of the month (especially the last few days) is also a prime time for deals as dealers try to hit quotas, says Autotrader and Ally.
Shop early within the week, not on the weekends Dealerships tend to be crowded throughout the weekends. Monday, Tuesday, and Wednesday are usually the simplest days to buy for a car because less customer traffic means a far better chance of getting a deal.
The 20/3/8 car rule is a financial guideline for buying a car, suggesting you put down 20% of the price, finance it for no more than 3 years (36 months), and keep your total monthly car expenses (payment, insurance, etc.) to 8% or less of your gross monthly income. This rule helps you avoid being "underwater" on your loan, pay less in interest, and maintain a healthy budget for other financial goals like savings and investments, focusing on affordable, reliable transportation rather than luxury vehicles.
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Here's why: Monday to Thursday: Fewer customers mean the sales team can give you more attention. You won't feel rushed, and they may have more time to talk about pricing or special offers. End-of-month: This is when dealerships might be trying to hit their monthly goals.
For years, dealerships have been using a tactic called a “four square”—a sheet of paper divided into four boxes where the salesperson will write down your trade value, the purchase price of the vehicle you're buying, your down payment, and your monthly payment.
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The FTC Red Flags Rule requires auto dealerships to have a written Identity Theft Prevention Program (ITPP) to detect, prevent, and mitigate identity theft, especially in financing/leasing, by spotting signs like suspicious documents (altered IDs, mismatched photos), inconsistent application info, or unusual account activity, with consequences for non-compliance including hefty FTC penalties and lawsuits, notes the Federal Trade Commission. Key steps involve identifying vulnerable accounts, spotting specific "red flags," creating detection/response plans, training staff, and regular audits, with a senior manager overseeing the whole program, say Dealertrack and Total Dealer Compliance.
Unfortunately, it isn't an exact science because it changes from car to car and dealer to dealer. However, you can use the guideline of 2 or 3% on less expensive brands, and 5 to 10% on luxury brands as a rule of thumb.
Dave Ramsey's core car buying rule is to pay cash for a reliable used car, avoiding debt and new car depreciation; he suggests only buying new if you're a millionaire, and generally, the total value of all your vehicles shouldn't exceed 50% of your annual income. His philosophy emphasizes buying what you can afford outright, viewing cars as depreciating assets that shouldn't trap you in debt.
Timing is very important in negotiating car prices. Dealers are more likely to offer discounts at the end of the month or quarter when they are trying to meet sales quotas. The holiday season and year-end are also great times to buy, as dealerships offer incentives on outgoing models.
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Don't hesitate to negotiate or simply say no to fees for things you don't want or need. If they're non-negotiable, make sure you know exactly what you're being charged for. “The salesperson will probably aggressively offer extras when you're signing your final paperwork,” says Pope.
If your model is high in supply with low demand, you're more likely to get a lower price. If the car you want is popular right now, consider waiting until the market changes. If you don't need a car right now, waiting until the market changes may help you better avoid any supply-demand dealer markups.
A little preparation, and knowing some of the common car dealer tricks used by salespeople, can help you close on a car with confidence.
Let's look at some things to keep under your hat while you explore the lot.
Take time before going out shopping to educate yourself on what is available and the current market value of the car you want. This will give you a better idea of how much to pay, so that you can avoid being overcharged by a salesperson. The more knowledge you have, the better equipped you will be to spot a good deal.