The Christmas and holiday automotive promotions began in mid-November and have been going strong ever since.
If you are in the market for a new vehicle, there’s no better time than now to buy. Throughout December, new car dealers and auto manufacturers are aggressively promoting year-end clearance sales, competitive lease and financing rates and other incentives.
This end-of-year marketing push began in the 1980s, when dealers and manufacturers introduced one-day Boxing Day sales. The Boxing Day concept was so successful that manufacturers soon extended their promotions for an entire week, and eventually for a month and longer.
Here are five compelling reasons to buy a new car during the holiday season.
1) Save money. Car shoppers can save thousands of dollars on a new vehicle. Generous cash credits, cash rebates, low interest/lease rates and dealer incentives are available on many brands and models.
2) Dealers are motivated to sell. The festive season marks the end of the calendar year for dealers, when bonus money (for salespeople and mangers) and bragging rights are up for grabs. Individual dealers are inclined to offer even better deals so that they hit their monthly and yearly sales quotas.
3) A gift. Giving a loved one a car as a gift is not as rare as you might imagine. At our dealership, we’ve delivered many cars and trucks as gifts to spouses, parents and children. Some customers even buy cars during the holidays and call it a “gift to the family.”
4) Winter is tough on vehicles. If the mileage on your vehicle is getting high, you might be spending more money on repairs and maintenance. Therefore, it might make sense to buy a new vehicle now, before the cold winter months. Plus, if an older model car breaks down in mid-winter, it could necessitate the purchase of a new vehicle when dealer/manufacturer incentives are less generous.
5) Low demand vehicles. In addition to wanting to reach their monthly and yearly sales quotas, dealers are motivated to sell overstocked vehicles that are in less demand. The longer these low-demand vehicles gather dust, the more it costs dealers to keep them. So, if shoppers aren’t too fussy about model, options, colour, etc., they could get an even better deal on a new vehicle.
Of course, these five reasons shouldn’t be your sole criteria for deciding whether to buy during the holidays. Other factors, such as monthly carrying costs, fuel economy, insurance, residual value and maintenance costs should also be considered.
If you’re looking for a stocking stuffer for the car lover on your shopping list, dealerships also offer a wide range of affordably-priced parts and accessories. Brand apparel, cargo beds, seat covers, fog lights, bicycle carriers, remote starters and aluminum wheels would make great gift ideas.
So do detailing packages: Most dealerships offer detailing packages in the $50-$70 range that could be purchased in the form of a gift certificate.
But for those who are prepared to buy now, the deals on new vehicles are plentiful and generous. Whether you’re looking for a new car or an accessory gift item, consider shopping at your local new car dealership this holiday season.
Once again, the TADA is proud to support Prostate Cancer Canada. This year, our Association has donated a custom 2016 Audi S5 (valued at more than $119,443) for the Rock the Road Raffle.
For information about where the auto industry is going — or if you’re looking for new career opportunities — visit carsandjobs.com.
This column represents the views of TADA. go to tada.ca. Doug Sullivan is president of the Trillium Automobile Dealers Association. He is a new-car dealer in Huntsville, Ont.