5 reasons why the end of the year may be the best time to buy a car

Now might be just the right time to start car-shopping.
Now might be just the right time to start car-shopping. (Provided by Volkswagen Clear Lake)

Many customers ask: When is the best time to buy a car?

The answer hinges on several factors.

But if you’re buying a car from a volume-dealer such as Volkswagen Clear Lake, you can score incredible deals all year long -- because these dealers would rather sell thousands of cars for less profit than hundreds for more, according to the experts at Clear Lake. The idea is, aggressive prices all year long mean more customers are happy with their purchase, and they’ll come back over and over again.

Many manufacturers, however, release even more discounts at end of year, so here are five reasons why the end of the year can be an ideal time to make that purchase.

Model-end clearance

One of the best times to buy a new car is whenever the new model year is released.

For example, the 2021 Tiguan was just released at Volkswagen Clear Lake, so the 2020 models -- which are still new -- are now on clearance. This means the manufacturer has removed any restrictions on pricing that the dealer can use, allowing a dealership like Volkswagen Clear Lake to offer thousands of dollars off MSRP on those late-model vehicles to make room for the new-year models.

Model-end clearance can technically happen on various vehicles all year long, depending on when the new models come out. The seven-seater 2021 Atlas, for example, came out in the spring, so the 2020 Atlases were discounted significantly this summer.

Are you happy with your vehicle? (Provided by Volkswagen Clear Lake)

You’ll want to make sure you’re following the news on when the vehicle you want is getting its newer model in.

However, most of the time, the next year’s model comes out at the end of the year, making it a really good time to buy a late model.

Sales tax credits

Normally, when you buy or lease a car, you have to pay sales tax on the entire vehicle; which, for a lease, can really increase your payment. This year, Volkswagen Credit Institution has just announced special tax credits for customers leasing in November and December at Volkswagen Clear Lake.

“We are really excited, being able to offer tax credits to our leasing customers,” said Luke Lundberg, general sales manager for Volkswagen Clear Lake. “We have a lot of customers who want a really affordable payment and need a new car for their business or household. Adding in these tax credits can really make that happen.”

These sales tax credits from VCI allow customers to lease during Sign Then Drive (more on this in a minute), and not pay sales tax on the entire vehicle. Tax savings significantly lower your lease payment. This is another reason why getting a new vehicle at the end of the year can mean significant savings.

Holiday promotions

Speaking of leasing, here’s another reason the end of the year can be such a prime time to get a new car: The holiday promotions that dealerships offer.

Right now at Volkswagen Clear Lake, for example, they are running Sign Then Drive, mentioned just above, which offers customers $0 down, $0 security deposit and $0 first month’s payment (in addition to a tax credit) on their new car lease.

For customers wanting to purchase, Volkswagen Clear Lake is offering holiday payment relief, in which guests can buy a new car now and defer their first payment to well after the holidays -- all the way into spring of 2021.

Holiday promotions are a great thing to watch out for if you are looking for some of the best deals of the year.

Visit this website for more information on Sign Then Drive.

Trade-in offers

The used car market has been booming for many dealerships, which means they are eager to buy your car, or have you trade in your old vehicle when you upgrade, so they can use that vehicle for their used car department.

Aggressive trade offers happen all year long at Volkswagen Clear Lake, but because demand is so high for these vehicles, and because dealerships are eager to reach their yearly goals, end of the year is a really good time to get the most for your trade.

“We have become known for our trade offers,” Lundberg said. “We have guests who refer their friends and family to us based on this one factor alone. Competitive prices, a great selection, and our well-known vehicle exchange trade program means customers get what they are looking for. We don’t want to just be a one-time dealer. We want to be their dealership forever.”

Unexpected add-ons

Manufacturers and dealerships are well-known for providing extra incentives and extra savings at the end of the year. In addition to all the reasons above, end-of-year is the most likely time for unexpected add-ons.

Right now, for example, Volkswagen Clear Lake is offering 0% APR for up to six years. Volkswagen added this offering again to customers for November and December, even though it’s also doing Sign Then Drive and tax credits.

Paying zero interest on a new car for six years means thousands of dollars in savings, making buying a car at Volkswagen Clear Lake for well-qualified buyers a no-brainer, Lundberg said.

Volkswagen Clear Lake (Provided by Volkswagen Clear Lake)

Whether you want to lease or buy, get new or used, trade in or keep your vehicle, the end of the year can be a perfect time to get the best offer.

A volume-dealer like Volkswagen Clear Lake has the whole gamut of solutions, plus credit and payment options for all, Lundberg said.

Learn more about year-end clearance deals by clicking or tapping here.