Is Christmas a Good Time to Buy a Car? Here’s What You Need to Know

Is Christmas a good time to buy a car? Or would buying a new car in another month be the best time? Summer certainly seems fitting – it’s a fun time to enjoy the freedom a new set of wheels can bring. From holiday road trips to spontaneous summer sunsets on the beach, cars can bring us memories we’ll cherish forever.

If a car tops your list of Christmas gifts for car lovers, there are several reasons to consider when deciding if now is the right time to make that purchase. Of course, there are some reasons not to as well. To help you decide whether it’s the best gift to give yourself (or someone else) or whether buying a car for Christmas should wait ’til another time of year, here are some pros and cons.

Is Christmas a good time to buy a car? Reasons why it might be

Is Christmas a good time to buy a car? Yes, there are a few positives in favour of it potentially being the best time of year to buy a car.

Further down we’ll take you through cons of buying a car during Christmas; but first, here’s a rundown of the pros:

New for old

While cars may not go out of fashion as quickly as mobile phones (or their operating systems) their build date does impact their value and their demand. Many people have been saving for a new car that’s badged ‘this year’, so last year’s model just won’t cut it. Hence, there’s less competition for this stock. As a result, car salespeople are eager to get rid of old stock to make way for new models released at the beginning of each year.

Is Christmas a good time to buy a car? Why deals are more likely now…

Following on from the above point, there’s a bit of a frenzy come end of the calendar year to hastily clear out the old stock. This = sales, sales, sales.

For the buyer this means lots of December to March bargains. If you’re working on a budget and you don’t mind driving last year’s model, then Christmas is a good time to buy a car. Go hard for a big discount and some add-ons at no extra cost – nothing ventured, nothing gained!

End of year quota

If you sell cars, hitting a sales target by the end of the calendar year is part of your business. This is another reason Christmas is a good time to buy a car. Not only can you generally find great deals at this time of year, but you might be able to get an even better bargain via a car broker.

Storage

If you’re selling something as big as cars you need ample space for your stock. Another reason dealers make space for new models is that spending money on space that’s going to reap lower rewards isn’t much of an incentive. To sum it up, carrying last year’s build date can be a space and money waster.

Again, this is why Christmas, and the new year can be a great time to get double deals on buying a car that comes with last year’s build date.

Vehicle safety

ANCAP safety ratings are a valuable decision-making tool when buying a car. Buying last year’s build means it will likely have had its safety features assessed so you’ll know what you’re buying. Even though the new model may have improved safety, until it’s been tested you won’t know for sure.

Is Christmas a good time to buy a car? Your bonus could help fund it

For some people Christmas means a work bonus payment. For others it means the opportunity to ask for money instead of presents from family. Either way, this can be the much-needed cash injection to make a down payment/deposit on a car. (Side note: make sure you have enough left for car insurance for your car).

Extra ammunition

If this has convinced you to buy a car this Christmas, read some extra tips from us so you buy right:

• Beat buyer’s regret with this car buying checklist
• Understand the best questions to ask when buying a car
• Top five must-knows for buying an electric car
• This will help if you’re wondering how much to spend on a new car
• Scour these 10 timeless tips for first time car buyers

Is Christmas a good time to buy a car? Reasons to consider waiting

Christmas isn’t the only time of year that’s great for buying a car. EOFY car sales provide another opportunity to make the most of sales targets and bargains. If you’re cash strapped at Christmas or don’t want to rush into a decision, give yourself time to make the right choice.

A vehicle is a big commitment, and you’ll want to make a sound decision you’ll be happy living with.

With that said, here are some reasons Christmas may not be the best time to buy a car:

Car value

Cars manufactured outside of Australia take months to arrive on our sunny shores. More time is then needed for them to be certified to be sold here. So, by the time they reach the dealership they’re already well into their build year.

While you can financially benefit from buying ‘old stock’ as the new year starts, this will also impact the resale and trade in value of your car.

Vehicle safety

Another bonus of buying the latest released models over last year’s build is that car safety is being improved all the time.

If you buy a car in late December 2022 or early January 2023 with a 2021 build date, you’ll likely get a better price. However, are the safety features already outdated? That’s a real possibility you’ll want to be certain of before making a choice.

Car specs

New car models year after year come with improved safety features and functionality. If you’re going in for last year’s model, you may also be going in for a lesser car. Of course, this isn’t always the case, which is why it pays to cross check specs.

Occasionally there are only minor adjustments, or the changes are just to the aesthetics rather than the functionality.

Is Christmas a good time to buy a car? The look and feel factor

If your heart is set on investing in a particular model that’s newly launched or soon to arrive, then settling for a quickly outdated model may not feel right. After all, a vehicle is a serious investment. Weigh up the benefit of spending less but not getting what you want over investing more in your real goal.

Ultimately the best time to buy a car depends on your budget, your options, your desired goal and you! For some Christmas may be the best time to buy a car. For others, it could be the first month they’ve saved enough or the EOFY may turn out the be their best.

Protect your newbie with car insurance

Whether you balance price over model or model over price, you’ll want to protect your investment. Having cost-effective car insurance will give you peace of mind knowing that your car is well looked after.

Benefits can include coverage for weather damage, theft and road incidents. Depending on which of our plans you choose, your car insurance may cover vandalism too. All PD Insurance plans include cover for damage to other people’s vehicles (which is a major boon if you put a dent in someone’s Ferrari)!

Drive confidently knowing you’ve got your ducks in a row with comprehensive car insurance from PD. For honest car insurance that wins awards, why not get a quote below today?