Buying a car is a considerable expense, but an essential one for many. Luckily, there are ways to get a little more bang for your buck – like choosing the right time to purchase your vehicle. For example, visiting dealerships on Mondays, at the end of the month, or at the end of the year can net you bigger savings than if you picked a random time.
Buying a Car in Ontario at a Glance
- Buying a car at the end of a month, year, or on slow days can net you significant savings
- You don’t need to purchase the first car you see. Don’t be pressured by sales tactics and take your time.
- Make sure all your documents are in order before purchasing, like car insurance and registration
With all that said, it’s important to note that there are various factors influencing a car’s price beyond when you buy things. Sales, promotions, and the natural ebb and flow of the market are all things to take note of. Let’s break it down to get you the best possible deal.
Before You Buy
Decide On Your Budget
Cars are essential purchases, but they can quickly become overwhelming financial commitments if you don’t plan ahead. Before you even start looking at cars, it’s crucial to determine your budget. Take a hard look at your income, existing expenses, and savings to assess how much you can comfortably allocate to buying a car.
Consider setting both a soft budget and a hard budget. A soft budget is the ideal amount you’d like to spend, while a hard budget represents the absolute maximum you’re willing to pay.
Choose Your Car Model
With your budget in mind, it’s time to start narrowing down your options. Choosing the right car model is about more than just price. Rather, it’s about finding a vehicle that meets your specific needs. For example, do you want a new and shiny electric vehicle, or does something more traditional suit you?
We recommend starting by researching various car models online to compare specifications and customer reviews. A cheaper car might save you money upfront, but if it doesn’t meet your needs or requires costly maintenance, it may end up being more expensive in the long run.
Do The Math Beforehand
Here’s a tip not many people will tell you: you should use loan calculators before even stepping foot into a dealership. Armed with this knowledge, you’ll understand the general amount you can expect to pay on a monthly basis – which means you won’t be caught off guard when the sticker price gets broken down.
Additionally, you’ll have something to negotiate with, especially if other dealerships have online price calculators.
When To Buy a Car In Ontario
Many car dealerships operate on monthly sales targets or quotas that they’re eager to meet. As the end of the month approaches, sales teams may be more inclined to offer better deals to hit their targets. This could mean negotiating lower prices, getting added incentives, or even receiving special financing options to move cars off the lot. This puts you in a great position to negotiate for better prices.
The end of the calendar year is another prime time to buy a car, particularly from mid-November through December. This is for a few reasons. First, dealerships and manufacturers are usually trying to push unsold vehicles from the shop floor, which can mean even more aggressive sales tactics. Discounts during this time can be substantial as dealers offer year-end clearout sales.
However, it’s important to confirm whether the dealership follows a January-to-December calendar year or if their fiscal year begins at a different time. If their fiscal year ends in September, for example, the best time to catch their “end-of-year” deals might differ from the traditional calendar.
Mondays are typically quieter at dealerships compared to the busier weekends. This lower traffic can work in your favor. With fewer customers to attend to, salespeople may give you more personalized attention and be more willing to negotiate to close a sale.
If you visit on a Monday, you’ll likely have more time to test drive vehicles, ask questions, and negotiate the price without feeling rushed or pressured by the hustle of weekend shoppers. This relaxed environment can often lead to better deals as salespeople are focused on moving inventory.
Long weekends, such as those around holidays like Thanksgiving, Labour Day, or Canada Day, often come with special promotional events at car dealerships. These holiday weekends are known for aggressive marketing, where dealerships advertise reduced prices, lower financing rates, cashback offers, or bundled packages to entice buyers. The competition among dealers during these peak times can mean substantial savings for consumers.
While dealerships may be busier during long weekends, the potential discounts and special offers make it worth considering. To make the most of these events, research the promotions beforehand, arrive early, and be prepared to negotiate.
Other Factors Impacting Prices
Dealer Discounts and Incentives
Dealerships often offer discounts and special incentives to boost sales during slower periods. These can include cashback offers, low or zero-percent financing, or dealership-specific promotions like trade-in bonuses. We recommend keeping an eye out for these promotions by checking dealership websites or subscribing to newsletters to receive notifications of upcoming sales.
New Models Being Released
When a new model year is introduced, dealerships need to clear out the previous year’s stock to make room for the latest inventory. This means you can often find significant discounts on older models.
For example, if a 2025 model is being released, you might be able to score a great deal on a 2024 model that’s still brand-new but no longer the “latest” version. These discounts usually start rolling out in the fall, so if you’re flexible on having the newest model, waiting until new versions are launched can save you thousands.
Specific Holidays
Certain holidays, like Black Friday, Boxing Day, or New Year’s, are known for significant car sales events. Dealerships and manufacturers often launch aggressive holiday promotions, offering limited-time incentives to draw in buyers.
This is a great opportunity to take advantage of deep discounts or special financing rates that may not be available at other times of the year. Holidays create a competitive environment among dealerships, which can work in your favour as they’re more motivated to close sales during these periods.
Potential Tax Advantages
Timing your car purchase at the end of the year can also offer potential tax advantages, especially for business owners or self-employed folks who use their vehicles for work. Depending on your situation, you may be able to claim certain deductions, such as depreciation or business-related expenses.
In some cases, buying a car before the year ends allows you to take advantage of any applicable tax benefits for that tax year. For Canadians in particular, you might be able to deduct the overall depreciation of the vehicle from your taxable income. But don’t make guesses.
Instead, consult with a tax professional to determine how buying at a specific time could reduce your tax burden.
Manufacturer Rebates
Manufacturer rebates are direct incentives offered by carmakers to encourage buyers to purchase specific models. These rebates, which can be a few hundred to several thousand dollars, are typically available on slower-selling models or when a manufacturer wants to move inventory quickly. Rebates can be combined with dealer discounts for even greater savings.
Key Advice From MyChoice
- The best time to buy a car is really before you really need one
- Do your research beforehand and get ready to negotiate
- Bring a friend or other trusted person to help you see past the sales tactics